SCHD vs SDY
Schwab US Dividend Equity ETF vs State Street SPDR S&P Dividend ETF
Which is better, SCHD or SDY?
Large Cap Value against Mid Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.94. SDY is less concentrated, with 20.6% of the fund in its ten largest positions against 41.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SCHD | SDY |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.35% |
| AUM | $112.1B | $21.7B |
| Dividend Yield | 3.00% | 2.39% |
| Holdings | 103 | 158 |
| YTD Return | +23.46%Best | +9.03% |
| 1Y Return | +27.20%Best | +10.65% |
| 3Y Return (annualized) | +15.41%Best | +10.71% |
| 5Y Return (annualized) | +10.16%Best | +7.77% |
| Volatility (annualized) | 13.7% | 13.4%Best |
| Max Drawdown | -33.4%Best | -37.2% |
| $10,000 over 5 years | $16,223Best | $14,537 |
| Top 10 Weight | 41.8% | 20.6%Best |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Mid Cap Value |
| Inception | Oct 20, 2011 | Nov 8, 2005 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 18, 2026 (14.9 years).
SCHD vs SDY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 14.9 years both funds cover.
SCHD vs SDY Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and State Street SPDR S&P Dividend ETF (SDY) is an ETF from State Street Investment Management. Over the past year SCHD returned +27.20% while SDY returned +10.65%. Year to date, SCHD is up 23.46% versus a gain of 9.03% for SDY.
Over three years, SCHD compounded at +15.41% per year against +10.71% for SDY; over five years the annualized figures are +10.16% and +7.77% respectively. Across the full 15-year window we track, SCHD has the edge at +11.25% annualized vs +8.48%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 13.4% for SDY. 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 -33.4% for SCHD and -37.2% for SDY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
SCHD charges 0.06% per year while SDY charges 0.35%. On a $10,000 position that is $6 vs $35 annually, a gap of $29 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 2.39% for SDY.
Holdings Overlap
45.9% of SCHD's money is in holdings SDY also owns. 27.7% of SDY's money is in holdings SCHD also owns.
The two portfolios partly overlap.
24 positions in common, counted across the 100 positions we hold weights for in SCHD and 156 in SDY, against full books of 103 and 158.
What only one of them owns
Our book lists 130 positions for SDY that do not appear in our book for SCHD (71.4% of the fund), and 75 for SCHD that do not appear in SDY (54.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in SDY | Difference |
|---|---|---|---|
| VZVerizon Communic | 3.97% | 3.28% | 0.69% |
| CVXChevron Corp | 4.02% | 2.03% | 1.99% |
| ABTAbbott Laboratories | 4.69% | 1.30% | 3.39% |
| ACNAccenture Plc | 2.84% | 3.04% | 0.20% |
| PEPPepsico Inc. | 3.64% | 1.94% | 1.70% |
| KOCoca Cola Co. | 4.17% | 1.20% | 2.97% |
| PGProcter & Gamble Company | 3.83% | 1.26% | 2.57% |
| ADPAutomatic Data Processing, Inc. | 2.79% | 1.53% | 1.26% |
| LMTLockheed Martin Corp | 2.78% | 1.24% | 1.54% |
| TXNTexas Instrument Inc | 3.13% | 0.71% | 2.42% |
45.9% of SCHD is already inside SDY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SCHD or SDY?
SCHD has an expense ratio of 0.06% while SDY charges 0.35%. SCHD is the cheaper option, by $29 a year on a $10,000 investment.
Which performed better, SCHD or SDY?
Over the past year SCHD returned +27.20% vs +10.65% for SDY, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.25% vs +8.48% for SDY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or SDY?
SCHD has been the more volatile fund at 13.7% annualized versus 13.4% for SDY. Worst drawdown: SCHD -33.4% vs SDY -37.2%.
Should I hold both SCHD and SDY?
SCHD and SDY have a monthly-return correlation of 0.94, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between SCHD and SDY?
45.9% of SCHD's money is in holdings SDY also owns. 27.7% of SDY's is in holdings SCHD also owns. They hold 24 positions in common, counted across the 100 positions we hold weights for in SCHD and 156 in SDY.
Which pays a higher dividend, SCHD or SDY?
SCHD yields 3.00% while SDY yields 2.39%, so SCHD currently pays the higher dividend yield.
Is SDY better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.94. SDY is less concentrated, with 20.6% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.