SCHD vs SHPP

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SHPP offers more diversification with 115 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SHPP

Side-by-Side Comparison

MetricSCHDSHPPWinner
Expense Ratio0.06%0.60%
AUM$103.7B$2M
Dividend Yield3.31%1.74%
Holdings104105
YTD Return+24.26%+19.54%
1Y Return+31.38%+26.52%
3Y Return (annualized)+15.08%+11.76%
5Y Return (annualized)+9.72%-
Volatility (annualized)13.6%18.1%
Max Drawdown-33.4%-21.6%
Fund FamilyCharles Schwab Asset ManagementPacer ETFs
CategoryEquityEquity
InceptionOct 20, 2011Jun 8, 2022

SCHD vs SHPP Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Pacer Industrials and Logistics ETF (SHPP) is a ETF from Pacer ETFs. Over the past year SCHD returned +31.38% while SHPP returned +26.52%. Year to date, SCHD is up 24.26% versus a gain of 19.54% for SHPP.

Over three years, SCHD compounded at +15.08% per year against +11.76% for SHPP. Across the full 4-year window we track, SHPP has the edge at +11.67% annualized vs +11.39%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SHPP has been the more volatile fund, with annualized monthly volatility of 18.1% 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 -21.6% for SHPP. 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 0.78. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

SCHD charges 0.06% per year while SHPP charges 0.60%. On a $10,000 position that is $6 vs $60 annually, a gap of $54 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 1.74% for SHPP.

Holdings Overlap

2.3%overlap

SCHD and SHPP share 1 holdings out of 214 unique holdings combined, representing a 2.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SCHDWeight in SHPPDifference
UPS2.25%4.33%2.08%

Frequently Asked Questions

Which is cheaper, SCHD or SHPP?

SCHD has an expense ratio of 0.06% while SHPP charges 0.60%. SCHD is the cheaper option. On a $10,000 investment, that is $54 per year of difference.

Which performed better, SCHD or SHPP?

Over the past year SCHD returned +31.38% vs +26.52% for SHPP, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), SCHD annualized +11.39% vs +11.67% for SHPP. Past performance does not guarantee future results.

Which is riskier, SCHD or SHPP?

SHPP has been the more volatile fund at 18.1% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs SHPP -21.6%.

Should I hold both SCHD and SHPP?

SCHD and SHPP have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and SHPP?

SCHD and SHPP share 1 common holdings with a 2.3% weight overlap. Combined, they hold 214 unique securities.

Which pays a higher dividend, SCHD or SHPP?

SCHD yields 3.31% while SHPP yields 1.74%, so SCHD currently pays the higher dividend yield.

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