SCHD vs SPXX

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SPXX offers more diversification with 315 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SPXX

Side-by-Side Comparison

MetricSCHDSPXXWinner
Expense Ratio0.06%0.91%
AUM$103.7B-
Dividend Yield3.31%7.06%
Holdings104344
YTD Return+25.62%+10.68%
1Y Return+32.62%+15.25%
3Y Return (annualized)+15.58%+15.62%
5Y Return (annualized)+9.63%+8.67%
Volatility (annualized)13.6%15.9%
Max Drawdown-33.4%-60.0%
Fund FamilyCharles Schwab Asset ManagementNuveen
CategoryEquityAlternative
InceptionOct 20, 2011Nov 22, 2005

SCHD vs SPXX Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Nuveen S&P 500 Dynamic Overwrite Fund (SPXX) is a ETF from Nuveen. Over the past year SCHD returned +32.62% while SPXX returned +15.25%. Year to date, SCHD is up 25.62% versus a gain of 10.68% for SPXX.

Over three years, SCHD compounded at +15.58% per year against +15.62% for SPXX; over five years the annualized figures are +9.63% and +8.67% respectively. Across the full 15-year window we track, SCHD has the edge at +11.47% annualized vs +1.72%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPXX has been the more volatile fund, with annualized monthly volatility of 15.9% 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 -60.0% for SPXX. 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 0.76. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

SCHD charges 0.06% per year while SPXX 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 7.06% for SPXX.

Holdings Overlap

9.2%overlap

SCHD and SPXX share 19 holdings out of 396 unique holdings combined, representing a 9.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SCHDWeight in SPXXDifference
UNH4.54%0.69%3.85%
HD4.16%0.98%3.18%
PG4.15%0.95%3.20%
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Frequently Asked Questions

Which is cheaper, SCHD or SPXX?

SCHD has an expense ratio of 0.06% while SPXX 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 SPXX?

Over the past year SCHD returned +32.62% vs +15.25% for SPXX, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.47% vs +1.72% for SPXX. Past performance does not guarantee future results.

Which is riskier, SCHD or SPXX?

SPXX has been the more volatile fund at 15.9% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs SPXX -60.0%.

Should I hold both SCHD and SPXX?

SCHD and SPXX have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and SPXX?

SCHD and SPXX share 19 common holdings with a 9.2% weight overlap. Combined, they hold 396 unique securities.

Which pays a higher dividend, SCHD or SPXX?

SCHD yields 3.31% while SPXX yields 7.06%, so SPXX currently pays the higher dividend yield.

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