SCHD vs TEK
Schwab US Dividend Equity ETF vs iShares Technology Opportunities Active ETF
Quick Verdict
SCHD has a lower expense ratio. TEK delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | TEK | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.75% | |
| AUM | $103.7B | $39M | |
| Dividend Yield | 3.31% | 1.12% | |
| Holdings | 104 | 58 | |
| YTD Return | +24.26% | +27.85% | |
| 1Y Return | +31.38% | +34.41% | |
| 3Y Return (annualized) | +15.08% | - | |
| 5Y Return (annualized) | +9.72% | - | |
| Volatility (annualized) | 13.6% | 31.2% | |
| Max Drawdown | -33.4% | -28.2% | |
| Fund Family | Charles Schwab Asset Management | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Oct 21, 2024 |
SCHD vs TEK Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and iShares Technology Opportunities Active ETF (TEK) is a ETF from iShares by BlackRock (US). Over the past year SCHD returned +31.38% while TEK returned +34.41%. Year to date, SCHD is up 24.26% versus a gain of 27.85% for TEK.
Risk: Volatility and Drawdowns
TEK has been the more volatile fund, with annualized monthly volatility of 31.2% 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 -28.2% for TEK. 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 0.02. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TEK charges 0.75%. On a $10,000 position that is $6 vs $75 annually, a gap of $69 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 1.12% for TEK.
Holdings Overlap
SCHD and TEK share 0 holdings out of 152 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 TEK?
SCHD has an expense ratio of 0.06% while TEK charges 0.75%. SCHD is the cheaper option. On a $10,000 investment, that is $69 per year of difference.
Which performed better, SCHD or TEK?
Over the past year SCHD returned +31.38% vs +34.41% for TEK, so TEK leads on 1-year performance. Over the longest common window we track (2 years), SCHD annualized +11.39% vs +28.28% for TEK. Past performance does not guarantee future results.
Which is riskier, SCHD or TEK?
TEK has been the more volatile fund at 31.2% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TEK -28.2%.
Should I hold both SCHD and TEK?
SCHD and TEK have a monthly-return correlation of 0.02, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TEK?
SCHD and TEK share 0 common holdings with a 0.0% weight overlap. Combined, they hold 152 unique securities.
Which pays a higher dividend, SCHD or TEK?
SCHD yields 3.31% while TEK yields 1.12%, so SCHD currently pays the higher dividend yield.
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