SABA vs SCHD
Saba Capital Income & Opportunities Fund II vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SABA offers more diversification with 379 holdings.
Side-by-Side Comparison
| Metric | SABA | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.71% | 0.06% | |
| AUM | $255M | $103.7B | |
| Dividend Yield | 8.41% | 3.31% | |
| Holdings | 740 | 104 | |
| YTD Return | +5.52% | +24.26% | |
| 1Y Return | -1.67% | +31.38% | |
| 3Y Return (annualized) | +9.63% | +15.08% | |
| 5Y Return (annualized) | +3.59% | +9.72% | |
| Volatility (annualized) | 13.2% | 13.6% | |
| Max Drawdown | -62.0% | -33.4% | |
| Fund Family | Saba Capital | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Mar 17, 1988 | Oct 20, 2011 |
SABA vs SCHD Performance
Saba Capital Income & Opportunities Fund II (SABA) is a ETF from Saba Capital and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year SABA returned -1.67% while SCHD returned +31.38%. Year to date, SABA is up 5.52% versus a gain of 24.26% for SCHD.
Over three years, SABA compounded at +9.63% per year against +15.08% for SCHD; over five years the annualized figures are +3.59% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs -0.17%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 13.2% for SABA. 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 -62.0% for SABA 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SABA charges 0.71% per year while SCHD charges 0.06%. On a $10,000 position that is $71 vs $6 annually, a gap of $65 per year that compounds over a long holding period. On income, SABA currently yields 8.41% against 3.31% for SCHD.
Holdings Overlap
SABA and SCHD share 7 holdings out of 472 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, SABA or SCHD?
SABA has an expense ratio of 0.71% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $65 per year of difference.
Which performed better, SABA or SCHD?
Over the past year SABA returned -1.67% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SABA annualized -0.17% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, SABA or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 13.2% for SABA. Worst drawdown: SABA -62.0% vs SCHD -33.4%.
Should I hold both SABA and SCHD?
SABA and SCHD have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SABA and SCHD?
SABA and SCHD share 7 common holdings with a 0.0% weight overlap. Combined, they hold 472 unique securities.
Which pays a higher dividend, SABA or SCHD?
SABA yields 8.41% while SCHD yields 3.31%, so SABA currently pays the higher dividend yield.
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