SCHD vs SWPPX
Schwab US Dividend Equity ETF vs Schwab S&P 500 Index Fund
Which is better, SCHD or SWPPX?
Large Cap Value against Large Cap Blend.
SWPPX has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. SWPPX is less concentrated, with 37.4% of the fund in its ten largest positions against 41.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SCHD | SWPPX |
|---|---|---|
| Expense Ratio | 0.06% | 0.02%Best |
| AUM | $112.1B | $147.7B |
| Dividend Yield | 3.00% | 0.98% |
| Holdings | 103 | 503 |
| YTD Price Return | +21.46%Best | +12.29% |
| 1Y Price Return | +22.70%Best | +15.79% |
| 3Y Price Return (annualized) | +11.23%Best | -34.11% |
| 5Y Price Return (annualized) | +6.29%Best | -21.80% |
| Volatility (annualized) | 15.2%Best | 40.5% |
| Max Drawdown | -18.9%Best | -83.7% |
| $10,000 over 5 years | $13,566Best | $2,924 |
| Top 10 Weight | 41.8% | 37.4%Best |
| Fund Family | Charles Schwab Asset Management | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | Oct 20, 2011 | May 19, 1997 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for SWPPX. Both funds are measured the same way, so the comparison holds. SCHD yields 3.00% and SWPPX 0.98% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 20, 2021 to Sep 17, 2026 (5 years).
SCHD vs SWPPX growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5 years both funds cover. Prices exclude distributions, on both funds alike.
SCHD vs SWPPX Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and Schwab S&P 500 Index Fund (SWPPX) is a mutual fund from Charles Schwab Asset Management. Over the past year SCHD returned +22.70% while SWPPX returned +15.79%. Year to date, SCHD is up 21.46% versus a gain of 12.29% for SWPPX.
Over three years, SCHD compounded at +11.23% per year against -34.11% for SWPPX; over five years the annualized figures are +6.29% and -21.80% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SWPPX has been the more volatile fund, with annualized monthly volatility of 40.5% compared with 15.2% 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 -18.9% for SCHD and -83.7% for SWPPX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.11. They move largely independently of each other.
Fees and Cost Over Time
SCHD charges 0.06% per year while SWPPX charges 0.02%. On a $10,000 position that is $6 vs $2 annually, a gap of $4 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 0.98% for SWPPX.
Structure and taxes
SWPPX is a mutual fund and SCHD is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
94.9% of SCHD's money is in holdings SWPPX also owns. 7.9% of SWPPX's money is in holdings SCHD also owns.
Most of SCHD is already inside SWPPX. Owning both mostly buys the same companies twice.
46 positions in common, counted across the 100 positions we hold weights for in SCHD and 501 in SWPPX, against full books of 103 and 503.
What only one of them owns
Our book lists 448 positions for SWPPX that do not appear in our book for SCHD (90.6% of the fund), and 53 for SCHD that do not appear in SWPPX (5.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in SWPPX | Difference |
|---|---|---|---|
| MRKMerck & Company Inc | 4.77% | 0.50% | 4.27% |
| AMGNAmgen Inc. | 4.70% | 0.32% | 4.38% |
| ABTAbbott Laboratories | 4.69% | 0.28% | 4.41% |
| KOCoca Cola Co. | 4.17% | 0.52% | 3.65% |
| CVXChevron Corp | 4.02% | 0.57% | 3.45% |
| UNHUnitedhealth Group Incorporated | 3.82% | 0.58% | 3.24% |
| HDHome Depot Inc/The | 3.88% | 0.51% | 3.37% |
| PGProcter & Gamble Company | 3.83% | 0.52% | 3.31% |
| VZVerizon Communic | 3.97% | 0.30% | 3.67% |
| COPConocophillips Common Stock USD 0.01 | 3.94% | 0.23% | 3.71% |
94.9% of SCHD is already inside SWPPX.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SCHD or SWPPX?
SCHD has an expense ratio of 0.06% while SWPPX charges 0.02%. SWPPX is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, SCHD or SWPPX?
Over the past year SCHD returned +22.70% vs +15.79% for SWPPX, so SCHD leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or SWPPX?
SWPPX has been the more volatile fund at 40.5% annualized versus 15.2% for SCHD. Worst drawdown: SCHD -18.9% vs SWPPX -83.7%.
Should I hold both SCHD and SWPPX?
SCHD and SWPPX have a monthly-return correlation of 0.11, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between SCHD and SWPPX?
94.9% of SCHD's money is in holdings SWPPX also owns. 7.9% of SWPPX's is in holdings SCHD also owns. They hold 46 positions in common, counted across the 100 positions we hold weights for in SCHD and 501 in SWPPX.
Which pays a higher dividend, SCHD or SWPPX?
SCHD yields 3.00% while SWPPX yields 0.98%, so SCHD currently pays the higher dividend yield.
Is it better to hold SWPPX or SCHD in a taxable account?
SCHD is an ETF and SWPPX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is SWPPX better than SCHD?
SWPPX has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. SWPPX is less concentrated, with 37.4% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.