SCHD vs UDN

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

MetricSCHDUDNWinner
Expense Ratio0.06%0.77%
AUM$103.7B$107M
Dividend Yield3.31%3.00%
Holdings1044
YTD Return+25.33%-0.44%
1Y Return+32.31%+0.29%
3Y Return (annualized)+15.40%+1.40%
5Y Return (annualized)+9.70%-1.08%
Volatility (annualized)13.6%8.0%
Max Drawdown-33.4%-41.7%
Fund FamilyCharles Schwab Asset ManagementInvesco (US)
CategoryEquityAlternative
InceptionOct 20, 2011Feb 20, 2007

SCHD vs UDN Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Invesco DB US Dollar Index Bearish Fund ETF (UDN) is a ETF from Invesco (US). Over the past year SCHD returned +32.31% while UDN returned +0.29%. Year to date, SCHD is up 25.33% versus a loss of 0.44% for UDN.

Over three years, SCHD compounded at +15.40% per year against +1.40% for UDN; over five years the annualized figures are +9.70% and -1.08% respectively. Across the full 15-year window we track, SCHD has the edge at +11.45% annualized vs -0.94%. 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 8.0% for UDN. 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 -41.7% for UDN. 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while UDN charges 0.77%. On a $10,000 position that is $6 vs $77 annually, a gap of $71 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 3.00% for UDN.

Holdings Overlap

0.0%overlap

SCHD and UDN share 0 holdings out of 101 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 UDN?

SCHD has an expense ratio of 0.06% while UDN charges 0.77%. SCHD is the cheaper option. On a $10,000 investment, that is $71 per year of difference.

Which performed better, SCHD or UDN?

Over the past year SCHD returned +32.31% vs +0.29% for UDN, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.45% vs -0.94% for UDN. Past performance does not guarantee future results.

Which is riskier, SCHD or UDN?

SCHD has been the more volatile fund at 13.6% annualized versus 8.0% for UDN. Worst drawdown: SCHD -33.4% vs UDN -41.7%.

Should I hold both SCHD and UDN?

SCHD and UDN have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and UDN?

SCHD and UDN share 0 common holdings with a 0.0% weight overlap. Combined, they hold 101 unique securities.

Which pays a higher dividend, SCHD or UDN?

SCHD yields 3.31% while UDN yields 3.00%, so SCHD currently pays the higher dividend yield.

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