SCHD vs SEPP

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

MetricSCHDSEPPWinner
Expense Ratio0.06%0.50%
AUM$103.7B$24M
Dividend Yield3.31%0.00%
Holdings1047
YTD Return+24.26%+7.82%
1Y Return+31.38%+14.69%
3Y Return (annualized)+15.08%-
5Y Return (annualized)+9.72%-
Volatility (annualized)13.6%6.5%
Max Drawdown-33.4%-11.8%
Fund FamilyCharles Schwab Asset ManagementPGIM Investments
CategoryEquityAlternative
InceptionOct 20, 2011May 15, 2024

SCHD vs SEPP Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and PGIM S&P 500 Buffer 12 ETF - September (SEPP) is a ETF from PGIM Investments. Over the past year SCHD returned +31.38% while SEPP returned +14.69%. Year to date, SCHD is up 24.26% versus a gain of 7.82% for SEPP.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 6.5% for SEPP. 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 -11.8% for SEPP. 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while SEPP charges 0.50%. On a $10,000 position that is $6 vs $50 annually, a gap of $44 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.00% for SEPP.

Frequently Asked Questions

Which is cheaper, SCHD or SEPP?

SCHD has an expense ratio of 0.06% while SEPP charges 0.50%. SCHD is the cheaper option. On a $10,000 investment, that is $44 per year of difference.

Which performed better, SCHD or SEPP?

Over the past year SCHD returned +31.38% vs +14.69% for SEPP, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), SCHD annualized +11.39% vs +13.06% for SEPP. Past performance does not guarantee future results.

Which is riskier, SCHD or SEPP?

SCHD has been the more volatile fund at 13.6% annualized versus 6.5% for SEPP. Worst drawdown: SCHD -33.4% vs SEPP -11.8%.

Should I hold both SCHD and SEPP?

SCHD and SEPP have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, SCHD or SEPP?

SCHD yields 3.31% while SEPP yields 0.00%, so SCHD currently pays the higher dividend yield.

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