REIT vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricREITSCHDWinner
Expense Ratio0.68%0.06%
AUM$59M$103.7B
Dividend Yield3.06%3.31%
Holdings30104
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 FamilyALPS AdvisorsCharles Schwab Asset Management
CategoryEquityEquity
InceptionFeb 24, 2021Oct 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

0.0%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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