SCHD vs SWZ
Schwab US Dividend Equity ETF vs Total Return Securities Fund
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | SWZ | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 1.62% | |
| AUM | $103.7B | $96M | |
| Dividend Yield | 3.31% | 0.00% | |
| Holdings | 104 | 27 | |
| YTD Return | +25.58% | -4.82% | |
| 1Y Return | +31.06% | -2.31% | |
| 3Y Return (annualized) | +15.55% | +5.88% | |
| 5Y Return (annualized) | +9.61% | +2.64% | |
| Volatility (annualized) | 13.6% | 27.8% | |
| Max Drawdown | -33.4% | -57.7% | |
| Fund Family | Charles Schwab Asset Management | Total Return Securities Fund | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Aug 27, 1987 |
SCHD vs SWZ Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Total Return Securities Fund (SWZ) is a ETF from Total Return Securities Fund. Over the past year SCHD returned +31.06% while SWZ returned -2.31%. Year to date, SCHD is up 25.58% versus a loss of 4.82% for SWZ.
Over three years, SCHD compounded at +15.55% per year against +5.88% for SWZ; over five years the annualized figures are +9.61% and +2.64% respectively. Across the full 15-year window we track, SWZ has the edge at +11.58% annualized vs +11.46%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SWZ has been the more volatile fund, with annualized monthly volatility of 27.8% 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 -57.7% for SWZ. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SWZ charges 1.62%. On a $10,000 position that is $6 vs $162 annually, a gap of $156 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.00% for SWZ.
Holdings Overlap
SCHD and SWZ share 0 holdings out of 124 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 SWZ?
SCHD has an expense ratio of 0.06% while SWZ charges 1.62%. SCHD is the cheaper option. On a $10,000 investment, that is $156 per year of difference.
Which performed better, SCHD or SWZ?
Over the past year SCHD returned +31.06% vs -2.31% for SWZ, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.46% vs +11.58% for SWZ. Past performance does not guarantee future results.
Which is riskier, SCHD or SWZ?
SWZ has been the more volatile fund at 27.8% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs SWZ -57.7%.
Should I hold both SCHD and SWZ?
SCHD and SWZ have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SWZ?
SCHD and SWZ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 124 unique securities.
Which pays a higher dividend, SCHD or SWZ?
SCHD yields 3.31% while SWZ yields 0.00%, so SCHD currently pays the higher dividend yield.
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