SCHD vs SHDG
Schwab US Dividend Equity ETF vs Soundwatch Hedged Equity 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 | SHDG | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.91% | |
| AUM | $103.7B | $160M | |
| Dividend Yield | 3.31% | 0.49% | |
| Holdings | 104 | 8 | |
| YTD Return | +25.62% | +3.63% | |
| 1Y Return | +32.62% | +9.77% | |
| 3Y Return (annualized) | +15.58% | +12.17% | |
| 5Y Return (annualized) | +9.63% | - | |
| Volatility (annualized) | 13.6% | 9.7% | |
| Max Drawdown | -33.4% | -15.8% | |
| Fund Family | Charles Schwab Asset Management | Trust For Advised Portfolios | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Oct 24, 2022 |
SCHD vs SHDG Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Soundwatch Hedged Equity ETF (SHDG) is a ETF from Trust For Advised Portfolios. Over the past year SCHD returned +32.62% while SHDG returned +9.77%. Year to date, SCHD is up 25.62% versus a gain of 3.63% for SHDG.
Over three years, SCHD compounded at +15.58% per year against +12.17% for SHDG. Across the full 4-year window we track, SHDG has the edge at +14.35% annualized vs +11.47%. 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 9.7% for SHDG. 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 -15.8% for SHDG. 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SHDG charges 0.91%. On a $10,000 position that is $6 vs $91 annually, a gap of $85 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.49% for SHDG.
Holdings Overlap
SCHD and SHDG share 0 holdings out of 102 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 SHDG?
SCHD has an expense ratio of 0.06% while SHDG charges 0.91%. SCHD is the cheaper option. On a $10,000 investment, that is $85 per year of difference.
Which performed better, SCHD or SHDG?
Over the past year SCHD returned +32.62% vs +9.77% for SHDG, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), SCHD annualized +11.47% vs +14.35% for SHDG. Past performance does not guarantee future results.
Which is riskier, SCHD or SHDG?
SCHD has been the more volatile fund at 13.6% annualized versus 9.7% for SHDG. Worst drawdown: SCHD -33.4% vs SHDG -15.8%.
Should I hold both SCHD and SHDG?
SCHD and SHDG have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SHDG?
SCHD and SHDG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 102 unique securities.
Which pays a higher dividend, SCHD or SHDG?
SCHD yields 3.31% while SHDG yields 0.49%, so SCHD currently pays the higher dividend yield.
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