SCHD vs SECT
SCHD vs SECT
Schwab US Dividend Equity ETF vs Main Sector Rotation 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 | SCHD | SECT | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.69% | |
| AUM | $103.7B | $2.8B | |
| Dividend Yield | 3.31% | 0.72% | |
| Holdings | 104 | 14 | |
| YTD Return | +24.26% | +12.86% | |
| 1Y Return | +31.38% | +24.09% | |
| 3Y Return (annualized) | +15.08% | +18.97% | |
| 5Y Return (annualized) | +9.72% | +12.37% | |
| Volatility (annualized) | 13.6% | 20.2% | |
| Max Drawdown | -33.4% | -50.1% | |
| Fund Family | Charles Schwab Asset Management | Main Management ETF Advisors, LLC | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Sep 5, 2017 |
SCHD vs SECT Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Main Sector Rotation ETF (SECT) is a ETF from Main Management ETF Advisors, LLC. Over the past year SCHD returned +31.38% while SECT returned +24.09%. Year to date, SCHD is up 24.26% versus a gain of 12.86% for SECT.
Over three years, SCHD compounded at +15.08% per year against +18.97% for SECT; over five years the annualized figures are +9.72% and +12.37% respectively. Across the full 10-year window we track, SCHD has the edge at +11.39% annualized vs +7.21%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SECT has been the more volatile fund, with annualized monthly volatility of 20.2% 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 -33.4% for SCHD and -50.1% for SECT. 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SECT charges 0.69%. On a $10,000 position that is $6 vs $69 annually, a gap of $63 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.72% for SECT.
Holdings Overlap
SCHD and SECT share 0 holdings out of 110 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, SCHD or SECT?
SCHD has an expense ratio of 0.06% while SECT charges 0.69%. SCHD is the cheaper option. On a $10,000 investment, that is $63 per year of difference.
Which performed better, SCHD or SECT?
Over the past year SCHD returned +31.38% vs +24.09% for SECT, so SCHD leads on 1-year performance. Over the longest common window we track (10 years), SCHD annualized +11.39% vs +7.21% for SECT. Past performance does not guarantee future results.
Which is riskier, SCHD or SECT?
SECT has been the more volatile fund at 20.2% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs SECT -50.1%.
Should I hold both SCHD and SECT?
SCHD and SECT have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SECT?
SCHD and SECT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 110 unique securities.
Which pays a higher dividend, SCHD or SECT?
SCHD yields 3.31% while SECT yields 0.72%, so SCHD currently pays the higher dividend yield.
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