SCHD vs STPZ

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

MetricSCHDSTPZWinner
Expense Ratio0.06%0.20%
AUM$103.7B$518M
Dividend Yield3.31%3.36%
Holdings10424
YTD Return+25.62%+0.83%
1Y Return+32.62%+1.73%
3Y Return (annualized)+15.58%+4.74%
5Y Return (annualized)+9.63%+2.49%
Volatility (annualized)13.6%2.6%
Max Drawdown-33.4%-8.9%
Fund FamilyCharles Schwab Asset ManagementPIMCO (US)
CategoryEquityFixed Income
InceptionOct 20, 2011Aug 20, 2009

SCHD vs STPZ Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and PIMCO 1-5 Year US TIPS Index Exchange-Traded Fund (STPZ) is a ETF from PIMCO (US). Over the past year SCHD returned +32.62% while STPZ returned +1.73%. Year to date, SCHD is up 25.62% versus a gain of 0.83% for STPZ.

Over three years, SCHD compounded at +15.58% per year against +4.74% for STPZ; over five years the annualized figures are +9.63% and +2.49% respectively. Across the full 15-year window we track, SCHD has the edge at +11.47% annualized vs +1.44%. 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 2.6% for STPZ. 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 -8.9% for STPZ. 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while STPZ charges 0.20%. On a $10,000 position that is $6 vs $20 annually, a gap of $14 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 3.36% for STPZ.

Holdings Overlap

0.0%overlap

SCHD and STPZ share 0 holdings out of 121 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 STPZ?

SCHD has an expense ratio of 0.06% while STPZ charges 0.20%. SCHD is the cheaper option. On a $10,000 investment, that is $14 per year of difference.

Which performed better, SCHD or STPZ?

Over the past year SCHD returned +32.62% vs +1.73% for STPZ, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.47% vs +1.44% for STPZ. Past performance does not guarantee future results.

Which is riskier, SCHD or STPZ?

SCHD has been the more volatile fund at 13.6% annualized versus 2.6% for STPZ. Worst drawdown: SCHD -33.4% vs STPZ -8.9%.

Should I hold both SCHD and STPZ?

SCHD and STPZ have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and STPZ?

SCHD and STPZ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 121 unique securities.

Which pays a higher dividend, SCHD or STPZ?

SCHD yields 3.31% while STPZ yields 3.36%, so STPZ currently pays the higher dividend yield.

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