SCHD vs TEQI
Schwab US Dividend Equity ETF vs T. Rowe Price Equity Income ETF
Which is better, SCHD or TEQI?
Each has led over a different period.
SCHD has a lower expense ratio. SCHD led over 1Y, TEQI over 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.91. TEQI is less concentrated, with 28.5% of the fund in its ten largest positions against 41.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SCHD | TEQI |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.54% |
| AUM | $112.1B | $471M |
| Dividend Yield | 3.00% | 1.46% |
| Holdings | 103 | 115 |
| YTD Return | +23.46%Best | +14.67% |
| 1Y Return | +27.20%Best | +19.89% |
| 3Y Return (annualized) | +15.41% | +16.35%Best |
| 5Y Return (annualized) | +10.16% | +11.11%Best |
| Volatility (annualized) | 15.2%Best | 15.5% |
| Max Drawdown | -16.9%Best | -17.8% |
| $10,000 over 5 years | $16,223 | $16,934Best |
| Top 10 Weight | 41.8% | 28.5%Best |
| Fund Family | Charles Schwab Asset Management | T.Rowe Price |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Oct 20, 2011 | Aug 4, 2020 |
Volatility and max drawdown are measured over the window both funds cover: Aug 5, 2020 to Sep 18, 2026 (6.1 years).
SCHD vs TEQI growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 6.1 years both funds cover.
SCHD vs TEQI Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and T. Rowe Price Equity Income ETF (TEQI) is an ETF from T.Rowe Price. Over the past year SCHD returned +27.20% while TEQI returned +19.89%. Year to date, SCHD is up 23.46% versus a gain of 14.67% for TEQI.
Over three years, SCHD compounded at +15.41% per year against +16.35% for TEQI; over five years the annualized figures are +10.16% and +11.11% respectively. Across the full 6-year window we track, TEQI has the edge at +14.64% annualized vs +13.81%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TEQI has been the more volatile fund, with annualized monthly volatility of 15.5% compared with 15.2% 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 -16.9% for SCHD and -17.8% for TEQI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
SCHD charges 0.06% per year while TEQI charges 0.54%. On a $10,000 position that is $6 vs $54 annually, a gap of $48 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 1.46% for TEQI.
Holdings Overlap
37.0% of SCHD's money is in holdings TEQI also owns. 11.9% of TEQI's money is in holdings SCHD also owns.
The two portfolios partly overlap.
15 positions in common, counted across the 100 positions we hold weights for in SCHD and 111 in TEQI, against full books of 103 and 115.
What only one of them owns
Our book lists 88 positions for TEQI that do not appear in our book for SCHD (79.8% of the fund), and 84 for SCHD that do not appear in TEQI (63.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in TEQI | Difference |
|---|---|---|---|
| COPConocophillips Common Stock USD 0.01 | 3.94% | 1.49% | 2.45% |
| PGProcter & Gamble Company | 3.83% | 1.13% | 2.70% |
| CVXChevron Corp | 4.02% | 0.93% | 3.09% |
| UNHUnitedhealth Group Incorporated | 3.82% | 0.92% | 2.90% |
| HDHome Depot Inc/The | 3.88% | 0.79% | 3.09% |
| BMYBristol-Myers Squibb Co. | 3.33% | 0.79% | 2.54% |
| QCOMQualcomm Inc. | 2.52% | 1.35% | 1.17% |
| TXNTexas Instrument Inc | 3.13% | 0.38% | 2.75% |
| SLBSchlumberger Nv. | 2.19% | 0.59% | 1.60% |
| UPSUnited Parcel Service, Inc | 1.90% | 0.72% | 1.18% |
37.0% of SCHD is already inside TEQI.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SCHD or TEQI?
SCHD has an expense ratio of 0.06% while TEQI charges 0.54%. SCHD is the cheaper option, by $48 a year on a $10,000 investment.
Which performed better, SCHD or TEQI?
Over the past year SCHD returned +27.20% vs +19.89% for TEQI, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), SCHD annualized +13.81% vs +14.64% for TEQI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or TEQI?
TEQI has been the more volatile fund at 15.5% annualized versus 15.2% for SCHD. Worst drawdown: SCHD -16.9% vs TEQI -17.8%.
Should I hold both SCHD and TEQI?
SCHD and TEQI have a monthly-return correlation of 0.91, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between SCHD and TEQI?
37.0% of SCHD's money is in holdings TEQI also owns. 11.9% of TEQI's is in holdings SCHD also owns. They hold 15 positions in common, counted across the 100 positions we hold weights for in SCHD and 111 in TEQI.
Which pays a higher dividend, SCHD or TEQI?
SCHD yields 3.00% while TEQI yields 1.46%, so SCHD currently pays the higher dividend yield.
Is TEQI better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, TEQI over 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.91. TEQI is less concentrated, with 28.5% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.