SCHD vs TXSS

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. TXSS offers more diversification with 182 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: TXSS

Side-by-Side Comparison

MetricSCHDTXSSWinner
Expense Ratio0.06%0.49%
AUM$103.7B$10M
Dividend Yield3.31%0.48%
Holdings104182
YTD Return+24.26%-1.97%
1Y Return+31.38%-6.59%
3Y Return (annualized)+15.08%-
5Y Return (annualized)+9.72%-
Volatility (annualized)13.6%18.5%
Max Drawdown-33.4%-25.6%
Fund FamilyCharles Schwab Asset ManagementTexas Capital
CategoryEquityEquity
InceptionOct 20, 2011Dec 20, 2023

SCHD vs TXSS Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Texas Capital Texas Small Cap Equity Index ETF (TXSS) is a ETF from Texas Capital. Over the past year SCHD returned +31.38% while TXSS returned -6.59%. Year to date, SCHD is up 24.26% versus a loss of 1.97% for TXSS.

Risk: Volatility and Drawdowns

TXSS has been the more volatile fund, with annualized monthly volatility of 18.5% 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 -25.6% for TXSS. 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 0.75. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

SCHD charges 0.06% per year while TXSS 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 3.31% against 0.48% for TXSS.

Holdings Overlap

0.3%overlap

SCHD and TXSS share 4 holdings out of 278 unique holdings combined, representing a 0.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SCHDWeight in TXSSDifference
NXST0.14%0.91%0.77%
MUR0.13%0.53%0.40%
NSP0.05%0.44%0.39%
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Frequently Asked Questions

Which is cheaper, SCHD or TXSS?

SCHD has an expense ratio of 0.06% while TXSS 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 TXSS?

Over the past year SCHD returned +31.38% vs -6.59% for TXSS, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), SCHD annualized +11.39% vs +4.17% for TXSS. Past performance does not guarantee future results.

Which is riskier, SCHD or TXSS?

TXSS has been the more volatile fund at 18.5% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TXSS -25.6%.

Should I hold both SCHD and TXSS?

SCHD and TXSS have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and TXSS?

SCHD and TXSS share 4 common holdings with a 0.3% weight overlap. Combined, they hold 278 unique securities.

Which pays a higher dividend, SCHD or TXSS?

SCHD yields 3.31% while TXSS yields 0.48%, so SCHD currently pays the higher dividend yield.

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