SCHD vs TXS
Schwab US Dividend Equity ETF vs Texas Capital Texas Equity Index ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. TXS offers more diversification with 457 holdings.
Side-by-Side Comparison
| Metric | SCHD | TXS | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.49% | |
| AUM | $108.7B | $39M | |
| Dividend Yield | 3.13% | 0.78% | |
| Holdings | 104 | 457 | |
| YTD Return | +25.69% | +19.31% | |
| 1Y Return | +30.41% | +23.39% | |
| 3Y Return (annualized) | +16.03% | +21.59% | |
| 5Y Return (annualized) | +9.64% | - | |
| Volatility (annualized) | 13.6% | 14.0% | |
| Max Drawdown | -33.4% | -19.7% | |
| Fund Family | Charles Schwab Asset Management | Texas Capital | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Jul 12, 2023 |
SCHD vs TXS Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Texas Capital Texas Equity Index ETF (TXS) is a ETF from Texas Capital. Over the past year SCHD returned +30.41% while TXS returned +23.39%. Year to date, SCHD is up 25.69% versus a gain of 19.31% for TXS.
Over three years, SCHD compounded at +16.03% per year against +21.59% for TXS. Across the full 3-year window we track, TXS has the edge at +19.61% annualized vs +11.46%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TXS has been the more volatile fund, with annualized monthly volatility of 14.0% 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 -19.7% for TXS. 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while TXS charges 0.49%. On a $10,000 position that is $6 vs $49 annually, a gap of $43 per year that compounds over a long holding period. On income, SCHD currently yields 3.13% against 0.78% for TXS.
Holdings Overlap
SCHD and TXS share 12 holdings out of 318 unique holdings combined, representing a 5.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or TXS?
SCHD has an expense ratio of 0.06% while TXS charges 0.49%. SCHD is the cheaper option. On a $10,000 investment, that is $43 per year of difference.
Which performed better, SCHD or TXS?
Over the past year SCHD returned +30.41% vs +23.39% for TXS, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), SCHD annualized +11.46% vs +19.61% for TXS. Past performance does not guarantee future results.
Which is riskier, SCHD or TXS?
TXS has been the more volatile fund at 14.0% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TXS -19.7%.
Should I hold both SCHD and TXS?
SCHD and TXS have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TXS?
SCHD and TXS share 12 common holdings with a 5.8% weight overlap. Combined, they hold 318 unique securities.
Which pays a higher dividend, SCHD or TXS?
SCHD yields 3.13% while TXS yields 0.78%, so SCHD currently pays the higher dividend yield.
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