RCS vs SCHD
PIMCO Strategic Income Fund Inc. vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | RCS | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.98% | 0.06% | |
| AUM | $217M | $103.7B | |
| Dividend Yield | 10.43% | 3.31% | |
| Holdings | 503 | 104 | |
| YTD Return | -4.80% | +25.33% | |
| 1Y Return | -21.07% | +32.31% | |
| 3Y Return (annualized) | +7.87% | +15.40% | |
| 5Y Return (annualized) | +1.02% | +9.70% | |
| Volatility (annualized) | 17.5% | 13.6% | |
| Max Drawdown | -60.9% | -33.4% | |
| Fund Family | PIMCO (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Feb 24, 1994 | Oct 20, 2011 |
RCS vs SCHD Performance
PIMCO Strategic Income Fund Inc. (RCS) is a ETF from PIMCO (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year RCS returned -21.07% while SCHD returned +32.31%. Year to date, RCS is down 4.80% versus a gain of 25.33% for SCHD.
Over three years, RCS compounded at +7.87% per year against +15.40% for SCHD; over five years the annualized figures are +1.02% and +9.70% respectively. Across the full 15-year window we track, SCHD has the edge at +11.45% annualized vs -0.46%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RCS has been the more volatile fund, with annualized monthly volatility of 17.5% compared with 13.6% for SCHD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -60.9% for RCS and -33.4% for SCHD. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
RCS charges 0.98% per year while SCHD charges 0.06%. On a $10,000 position that is $98 vs $6 annually, a gap of $92 per year that compounds over a long holding period. On income, RCS currently yields 10.43% against 3.31% for SCHD.
Holdings Overlap
RCS and SCHD share 0 holdings out of 119 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, RCS or SCHD?
RCS has an expense ratio of 0.98% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $92 per year of difference.
Which performed better, RCS or SCHD?
Over the past year RCS returned -21.07% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), RCS annualized -0.46% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, RCS or SCHD?
RCS has been the more volatile fund at 17.5% annualized versus 13.6% for SCHD. Worst drawdown: RCS -60.9% vs SCHD -33.4%.
Should I hold both RCS and SCHD?
RCS and SCHD have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RCS and SCHD?
RCS and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 119 unique securities.
Which pays a higher dividend, RCS or SCHD?
RCS yields 10.43% while SCHD yields 3.31%, so RCS currently pays the higher dividend yield.
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