SCHD vs SIO
Schwab US Dividend Equity ETF vs Touchstone Strategic Income ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SIO offers more diversification with 122 holdings.
Side-by-Side Comparison
| Metric | SCHD | SIO | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.50% | |
| AUM | $103.7B | $279M | |
| Dividend Yield | 3.31% | 4.77% | |
| Holdings | 104 | 205 | |
| YTD Return | +24.26% | +1.02% | |
| 1Y Return | +31.38% | +4.13% | |
| 3Y Return (annualized) | +15.08% | +7.02% | |
| 5Y Return (annualized) | +9.72% | - | |
| Volatility (annualized) | 13.6% | 5.7% | |
| Max Drawdown | -33.4% | -7.3% | |
| Fund Family | Charles Schwab Asset Management | Touchstone Investments | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Jul 21, 2022 |
SCHD vs SIO Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Touchstone Strategic Income ETF (SIO) is a ETF from Touchstone Investments. Over the past year SCHD returned +31.38% while SIO returned +4.13%. Year to date, SCHD is up 24.26% versus a gain of 1.02% for SIO.
Over three years, SCHD compounded at +15.08% per year against +7.02% for SIO. Across the full 4-year window we track, SCHD has the edge at +11.39% annualized vs +6.01%. 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 5.7% for SIO. 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 -7.3% for SIO. 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SIO 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 4.77% for SIO.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, SCHD or SIO?
SCHD has an expense ratio of 0.06% while SIO 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 SIO?
Over the past year SCHD returned +31.38% vs +4.13% for SIO, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), SCHD annualized +11.39% vs +6.01% for SIO. Past performance does not guarantee future results.
Which is riskier, SCHD or SIO?
SCHD has been the more volatile fund at 13.6% annualized versus 5.7% for SIO. Worst drawdown: SCHD -33.4% vs SIO -7.3%.
Should I hold both SCHD and SIO?
SCHD and SIO have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SIO?
SCHD and SIO share 2 common holdings with a 0.7% weight overlap. Combined, they hold 220 unique securities.
Which pays a higher dividend, SCHD or SIO?
SCHD yields 3.31% while SIO yields 4.77%, so SIO currently pays the higher dividend yield.
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