SCHD vs TYG

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricSCHDTYGWinner
Expense Ratio0.06%1.49%
AUM$108.7B$1.6B
Dividend Yield3.13%11.96%
Holdings10441
YTD Return+26.21%+12.66%
1Y Return+29.99%+13.62%
3Y Return (annualized)+15.73%+24.57%
5Y Return (annualized)+9.67%+20.71%
Volatility (annualized)13.6%34.9%
Max Drawdown-33.4%-97.3%
Fund FamilyCharles Schwab Asset ManagementTortoiseEcofin Funds
CategoryEquityEquity
InceptionOct 20, 2011Feb 27, 2004

SCHD vs TYG Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Tortoise Energy Infrastructure Corporation (TYG) is a ETF from TortoiseEcofin Funds. Over the past year SCHD returned +29.99% while TYG returned +13.62%. Year to date, SCHD is up 26.21% versus a gain of 12.66% for TYG.

Over three years, SCHD compounded at +15.73% per year against +24.57% for TYG; over five years the annualized figures are +9.67% and +20.71% respectively. Across the full 15-year window we track, SCHD has the edge at +11.50% annualized vs -1.43%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TYG has been the more volatile fund, with annualized monthly volatility of 34.9% 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 -97.3% for TYG. 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while TYG charges 1.49%. On a $10,000 position that is $6 vs $149 annually, a gap of $143 per year that compounds over a long holding period. On income, SCHD currently yields 3.13% against 11.96% for TYG.

Holdings Overlap

1.5%overlap

SCHD and TYG share 2 holdings out of 131 unique holdings combined, representing a 1.5% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SCHDWeight in TYGDifference
OKE1.36%4.23%2.87%
CWEN0.10%4.75%4.65%

Frequently Asked Questions

Which is cheaper, SCHD or TYG?

SCHD has an expense ratio of 0.06% while TYG charges 1.49%. SCHD is the cheaper option. On a $10,000 investment, that is $143 per year of difference.

Which performed better, SCHD or TYG?

Over the past year SCHD returned +29.99% vs +13.62% for TYG, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.50% vs -1.43% for TYG. Past performance does not guarantee future results.

Which is riskier, SCHD or TYG?

TYG has been the more volatile fund at 34.9% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TYG -97.3%.

Should I hold both SCHD and TYG?

SCHD and TYG have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and TYG?

SCHD and TYG share 2 common holdings with a 1.5% weight overlap. Combined, they hold 131 unique securities.

Which pays a higher dividend, SCHD or TYG?

SCHD yields 3.13% while TYG yields 11.96%, so TYG currently pays the higher dividend yield.

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