SCHD vs SPAQ

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

MetricSCHDSPAQWinner
Expense Ratio0.06%0.85%
AUM$103.7B$10M
Dividend Yield3.31%16.12%
Holdings10451
YTD Return+25.62%+3.71%
1Y Return+32.62%+5.19%
3Y Return (annualized)+15.58%+6.85%
5Y Return (annualized)+9.63%-
Volatility (annualized)13.6%2.9%
Max Drawdown-33.4%-5.3%
Fund FamilyCharles Schwab Asset ManagementHorizon Kinetics LLC
CategoryEquityEquity
InceptionOct 20, 2011Jan 27, 2023

SCHD vs SPAQ Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Horizon Kinetics SPAC Active ETF (SPAQ) is a ETF from Horizon Kinetics LLC. Over the past year SCHD returned +32.62% while SPAQ returned +5.19%. Year to date, SCHD is up 25.62% versus a gain of 3.71% for SPAQ.

Over three years, SCHD compounded at +15.58% per year against +6.85% for SPAQ. Across the full 4-year window we track, SCHD has the edge at +11.47% annualized vs +6.82%. 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 2.9% for SPAQ. 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 -5.3% for SPAQ. 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 -0.25. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while SPAQ charges 0.85%. On a $10,000 position that is $6 vs $85 annually, a gap of $79 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 16.12% for SPAQ.

Holdings Overlap

0.0%overlap

SCHD and SPAQ share 0 holdings out of 143 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 SPAQ?

SCHD has an expense ratio of 0.06% while SPAQ charges 0.85%. SCHD is the cheaper option. On a $10,000 investment, that is $79 per year of difference.

Which performed better, SCHD or SPAQ?

Over the past year SCHD returned +32.62% vs +5.19% for SPAQ, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), SCHD annualized +11.47% vs +6.82% for SPAQ. Past performance does not guarantee future results.

Which is riskier, SCHD or SPAQ?

SCHD has been the more volatile fund at 13.6% annualized versus 2.9% for SPAQ. Worst drawdown: SCHD -33.4% vs SPAQ -5.3%.

Should I hold both SCHD and SPAQ?

SCHD and SPAQ have a monthly-return correlation of -0.25, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and SPAQ?

SCHD and SPAQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 143 unique securities.

Which pays a higher dividend, SCHD or SPAQ?

SCHD yields 3.31% while SPAQ yields 16.12%, so SPAQ currently pays the higher dividend yield.

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