REIT vs SCHD
ALPS Active REIT ETF 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 | REIT | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.68% | 0.06% | |
| AUM | $59M | $103.7B | |
| Dividend Yield | 3.06% | 3.31% | |
| Holdings | 30 | 104 | |
| YTD Return | +17.03% | +25.33% | |
| 1Y Return | +21.77% | +32.31% | |
| 3Y Return (annualized) | +10.49% | +15.40% | |
| 5Y Return (annualized) | +4.47% | +9.70% | |
| Volatility (annualized) | 18.1% | 13.6% | |
| Max Drawdown | -29.3% | -33.4% | |
| Fund Family | ALPS Advisors | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Feb 24, 2021 | Oct 20, 2011 |
REIT vs SCHD Performance
ALPS Active REIT ETF (REIT) is a ETF from ALPS Advisors and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year REIT returned +21.77% while SCHD returned +32.31%. Year to date, REIT is up 17.03% versus a gain of 25.33% for SCHD.
Over three years, REIT compounded at +10.49% per year against +15.40% for SCHD; over five years the annualized figures are +4.47% and +9.70% respectively. Across the full 6-year window we track, SCHD has the edge at +11.45% annualized vs +7.63%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
REIT has been the more volatile fund, with annualized monthly volatility of 18.1% 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 -29.3% for REIT 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
REIT charges 0.68% per year while SCHD charges 0.06%. On a $10,000 position that is $68 vs $6 annually, a gap of $62 per year that compounds over a long holding period. On income, REIT currently yields 3.06% against 3.31% for SCHD.
Holdings Overlap
REIT and SCHD share 0 holdings out of 129 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, REIT or SCHD?
REIT has an expense ratio of 0.68% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $62 per year of difference.
Which performed better, REIT or SCHD?
Over the past year REIT returned +21.77% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), REIT annualized +7.63% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, REIT or SCHD?
REIT has been the more volatile fund at 18.1% annualized versus 13.6% for SCHD. Worst drawdown: REIT -29.3% vs SCHD -33.4%.
Should I hold both REIT and SCHD?
REIT and SCHD have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between REIT and SCHD?
REIT and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 129 unique securities.
Which pays a higher dividend, REIT or SCHD?
REIT yields 3.06% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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