SCHD vs TAN
Schwab US Dividend Equity ETF vs Invesco Solar ETF
Quick Verdict
SCHD has a lower expense ratio. TAN delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | TAN | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.70% | |
| AUM | $103.7B | $1.5B | |
| Dividend Yield | 3.31% | 0.00% | |
| Holdings | 104 | 42 | |
| 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 Family | Charles Schwab Asset Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Apr 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
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
| Stock | Weight in SCHD | Weight in TAN | Difference |
|---|---|---|---|
| CWEN | 0.11% | 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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