SCHD vs TFJL

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricSCHDTFJLWinner
Expense Ratio0.06%0.79%
AUM$103.7B$7M
Dividend Yield3.31%0.00%
Holdings1044
YTD Return+25.58%-4.89%
1Y Return+31.06%-5.10%
3Y Return (annualized)+15.55%-1.25%
5Y Return (annualized)+9.61%-4.29%
Volatility (annualized)13.6%8.4%
Max Drawdown-33.4%-25.4%
Fund FamilyCharles Schwab Asset ManagementInnovator ETFs Trust
CategoryEquityAlternative
InceptionOct 20, 2011Aug 17, 2020

SCHD vs TFJL Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Innovator 20+ Year Treasury Bond 5 Floor ETF - Quarterly (TFJL) is a ETF from Innovator ETFs Trust. Over the past year SCHD returned +31.06% while TFJL returned -5.10%. Year to date, SCHD is up 25.58% versus a loss of 4.89% for TFJL.

Over three years, SCHD compounded at +15.55% per year against -1.25% for TFJL; over five years the annualized figures are +9.61% and -4.29% respectively. Across the full 6-year window we track, SCHD has the edge at +11.46% annualized vs -4.65%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 8.4% for TFJL. 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 -25.4% for TFJL. 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 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while TFJL charges 0.79%. On a $10,000 position that is $6 vs $79 annually, a gap of $73 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.00% for TFJL.

Frequently Asked Questions

Which is cheaper, SCHD or TFJL?

SCHD has an expense ratio of 0.06% while TFJL charges 0.79%. SCHD is the cheaper option. On a $10,000 investment, that is $73 per year of difference.

Which performed better, SCHD or TFJL?

Over the past year SCHD returned +31.06% vs -5.10% for TFJL, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), SCHD annualized +11.46% vs -4.65% for TFJL. Past performance does not guarantee future results.

Which is riskier, SCHD or TFJL?

SCHD has been the more volatile fund at 13.6% annualized versus 8.4% for TFJL. Worst drawdown: SCHD -33.4% vs TFJL -25.4%.

Should I hold both SCHD and TFJL?

SCHD and TFJL have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, SCHD or TFJL?

SCHD yields 3.31% while TFJL yields 0.00%, so SCHD currently pays the higher dividend yield.

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