SCHD vs TEC
Schwab US Dividend Equity ETF vs Harbor Transformative Technologies ETF
Quick Verdict
SCHD has a lower expense ratio. TEC delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | SCHD | TEC | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.69% | |
| AUM | $108.7B | $7M | |
| Dividend Yield | 3.13% | 0.00% | |
| Holdings | 104 | 45 | |
| YTD Return | +27.67% | +19.56% | |
| 1Y Return | +29.56% | +30.05% | |
| 3Y Return (annualized) | +16.53% | - | |
| 5Y Return (annualized) | +9.95% | - | |
| Volatility (annualized) | 13.6% | 22.7% | |
| Max Drawdown | -33.4% | -17.5% | |
| Fund Family | Charles Schwab Asset Management | Harbor Funds | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Apr 16, 2025 |
SCHD vs TEC Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Harbor Transformative Technologies ETF (TEC) is a ETF from Harbor Funds. Over the past year SCHD returned +29.56% while TEC returned +30.05%. Year to date, SCHD is up 27.67% versus a gain of 19.56% for TEC.
Risk: Volatility and Drawdowns
TEC has been the more volatile fund, with annualized monthly volatility of 22.7% 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 -17.5% for TEC. 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 -0.13. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TEC charges 0.69%. On a $10,000 position that is $6 vs $69 annually, a gap of $63 per year that compounds over a long holding period. On income, SCHD currently yields 3.13% against 0.00% for TEC.
Holdings Overlap
SCHD and TEC share 0 holdings out of 144 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 TEC?
SCHD has an expense ratio of 0.06% while TEC charges 0.69%. SCHD is the cheaper option. On a $10,000 investment, that is $63 per year of difference.
Which performed better, SCHD or TEC?
Over the past year SCHD returned +29.56% vs +30.05% for TEC, so TEC leads on 1-year performance. Over the longest common window we track (1 years), SCHD annualized +11.55% vs +49.64% for TEC. Past performance does not guarantee future results.
Which is riskier, SCHD or TEC?
TEC has been the more volatile fund at 22.7% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TEC -17.5%.
Should I hold both SCHD and TEC?
SCHD and TEC have a monthly-return correlation of -0.13, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TEC?
SCHD and TEC share 0 common holdings with a 0.0% weight overlap. Combined, they hold 144 unique securities.
Which pays a higher dividend, SCHD or TEC?
SCHD yields 3.13% while TEC yields 0.00%, so SCHD currently pays the higher dividend yield.
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