SCHD vs TLTD
Schwab US Dividend Equity ETF vs FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. TLTD offers more diversification with 2317 holdings.
Side-by-Side Comparison
| Metric | SCHD | TLTD | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.39% | |
| AUM | $103.7B | $661M | |
| Dividend Yield | 3.31% | 3.41% | |
| Holdings | 104 | 2,387 | |
| YTD Return | +25.58% | +13.30% | |
| 1Y Return | +31.06% | +25.16% | |
| 3Y Return (annualized) | +15.55% | +21.28% | |
| 5Y Return (annualized) | +9.61% | +10.84% | |
| Volatility (annualized) | 13.6% | 15.1% | |
| Max Drawdown | -33.4% | -44.6% | |
| Fund Family | Charles Schwab Asset Management | Flexshares Trust | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Sep 25, 2012 |
SCHD vs TLTD Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund (TLTD) is a ETF from Flexshares Trust. Over the past year SCHD returned +31.06% while TLTD returned +25.16%. Year to date, SCHD is up 25.58% versus a gain of 13.30% for TLTD.
Over three years, SCHD compounded at +15.55% per year against +21.28% for TLTD; over five years the annualized figures are +9.61% and +10.84% respectively. Across the full 14-year window we track, SCHD has the edge at +11.46% annualized vs +6.97%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TLTD has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -44.6% for TLTD. 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while TLTD charges 0.39%. On a $10,000 position that is $6 vs $39 annually, a gap of $33 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 3.41% for TLTD.
Holdings Overlap
SCHD and TLTD share 0 holdings out of 2417 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 TLTD?
SCHD has an expense ratio of 0.06% while TLTD charges 0.39%. SCHD is the cheaper option. On a $10,000 investment, that is $33 per year of difference.
Which performed better, SCHD or TLTD?
Over the past year SCHD returned +31.06% vs +25.16% for TLTD, so SCHD leads on 1-year performance. Over the longest common window we track (14 years), SCHD annualized +11.46% vs +6.97% for TLTD. Past performance does not guarantee future results.
Which is riskier, SCHD or TLTD?
TLTD has been the more volatile fund at 15.1% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TLTD -44.6%.
Should I hold both SCHD and TLTD?
SCHD and TLTD have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TLTD?
SCHD and TLTD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2417 unique securities.
Which pays a higher dividend, SCHD or TLTD?
SCHD yields 3.31% while TLTD yields 3.41%, so TLTD currently pays the higher dividend yield.
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