SCHD vs TAN

Quick Verdict

SCHD has a lower expense ratio. TAN delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: TANMore Diversified: SCHD

Side-by-Side Comparison

MetricSCHDTANWinner
Expense Ratio0.06%0.70%
AUM$103.7B$1.5B
Dividend Yield3.31%0.00%
Holdings10442
YTD Return+25.33%+0.50%
1Y Return+32.31%+41.69%
3Y Return (annualized)+15.40%-5.66%
5Y Return (annualized)+9.70%-9.93%
Volatility (annualized)13.6%43.7%
Max Drawdown-33.4%-95.3%
Fund FamilyCharles Schwab Asset ManagementInvesco (US)
CategoryEquityEquity
InceptionOct 20, 2011Apr 15, 2008

SCHD vs TAN Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Invesco Solar ETF (TAN) is a ETF from Invesco (US). Over the past year SCHD returned +32.31% while TAN returned +41.69%. Year to date, SCHD is up 25.33% versus a gain of 0.50% for TAN.

Over three years, SCHD compounded at +15.40% per year against -5.66% for TAN; over five years the annualized figures are +9.70% and -9.93% respectively. Across the full 15-year window we track, SCHD has the edge at +11.45% annualized vs -6.91%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TAN has been the more volatile fund, with annualized monthly volatility of 43.7% 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 -95.3% for TAN. 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while TAN charges 0.70%. On a $10,000 position that is $6 vs $70 annually, a gap of $64 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.00% for TAN.

Holdings Overlap

0.1%overlap

SCHD and TAN share 1 holdings out of 134 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SCHDWeight in TANDifference
CWEN0.11%3.35%3.24%

Frequently Asked Questions

Which is cheaper, SCHD or TAN?

SCHD has an expense ratio of 0.06% while TAN charges 0.70%. SCHD is the cheaper option. On a $10,000 investment, that is $64 per year of difference.

Which performed better, SCHD or TAN?

Over the past year SCHD returned +32.31% vs +41.69% for TAN, so TAN leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.45% vs -6.91% for TAN. Past performance does not guarantee future results.

Which is riskier, SCHD or TAN?

TAN has been the more volatile fund at 43.7% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TAN -95.3%.

Should I hold both SCHD and TAN?

SCHD and TAN have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and TAN?

SCHD and TAN share 1 common holdings with a 0.1% weight overlap. Combined, they hold 134 unique securities.

Which pays a higher dividend, SCHD or TAN?

SCHD yields 3.31% while TAN yields 0.00%, so SCHD currently pays the higher dividend yield.

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