SCHD vs TCAF
Schwab US Dividend Equity ETF vs T. Rowe Price Capital Appreciation Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. TCAF offers more diversification with 347 holdings.
Side-by-Side Comparison
| Metric | SCHD | TCAF | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.31% | |
| AUM | $108.7B | $8.3B | |
| Dividend Yield | 3.13% | 0.47% | |
| Holdings | 104 | 347 | |
| YTD Return | +28.48% | +12.20% | |
| 1Y Return | +30.95% | +16.68% | |
| 3Y Return (annualized) | +16.80% | +18.85% | |
| 5Y Return (annualized) | +10.27% | - | |
| Volatility (annualized) | 13.7% | 12.3% | |
| Max Drawdown | -33.4% | -16.6% | |
| Fund Family | Charles Schwab Asset Management | T.Rowe Price | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Jun 14, 2023 |
SCHD vs TCAF Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and T. Rowe Price Capital Appreciation Equity ETF (TCAF) is a ETF from T.Rowe Price. Over the past year SCHD returned +30.95% while TCAF returned +16.68%. Year to date, SCHD is up 28.48% versus a gain of 12.20% for TCAF.
Over three years, SCHD compounded at +16.80% per year against +18.85% for TCAF. Across the full 3-year window we track, TCAF has the edge at +17.75% annualized vs +11.60%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 12.3% for TCAF. 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 -16.6% for TCAF. 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TCAF charges 0.31%. On a $10,000 position that is $6 vs $31 annually, a gap of $25 per year that compounds over a long holding period. On income, SCHD currently yields 3.13% against 0.47% for TCAF.
Holdings Overlap
SCHD and TCAF share 7 holdings out of 194 unique holdings combined, representing a 3.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or TCAF?
SCHD has an expense ratio of 0.06% while TCAF charges 0.31%. SCHD is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, SCHD or TCAF?
Over the past year SCHD returned +30.95% vs +16.68% for TCAF, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), SCHD annualized +11.60% vs +17.75% for TCAF. Past performance does not guarantee future results.
Which is riskier, SCHD or TCAF?
SCHD has been the more volatile fund at 13.7% annualized versus 12.3% for TCAF. Worst drawdown: SCHD -33.4% vs TCAF -16.6%.
Should I hold both SCHD and TCAF?
SCHD and TCAF have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TCAF?
SCHD and TCAF share 7 common holdings with a 3.9% weight overlap. Combined, they hold 194 unique securities.
Which pays a higher dividend, SCHD or TCAF?
SCHD yields 3.13% while TCAF yields 0.47%, so SCHD currently pays the higher dividend yield.
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