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

MetricSCHDUSDUWinner
Expense Ratio0.06%0.51%
AUM$103.7B$464M
Dividend Yield3.31%3.70%
Holdings1042
YTD Return+24.26%+2.01%
1Y Return+31.38%+4.24%
3Y Return (annualized)+15.08%+4.53%
5Y Return (annualized)+9.72%+5.02%
Volatility (annualized)13.6%6.2%
Max Drawdown-33.4%-14.5%
Fund FamilyCharles Schwab Asset ManagementWisdomTree Investments
CategoryEquityAlternative
InceptionOct 20, 2011Dec 18, 2013

SCHD vs USDU Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and WisdomTree Bloomberg US Dollar Bullish Fund (USDU) is a ETF from WisdomTree Investments. Over the past year SCHD returned +31.38% while USDU returned +4.24%. Year to date, SCHD is up 24.26% versus a gain of 2.01% for USDU.

Over three years, SCHD compounded at +15.08% per year against +4.53% for USDU; over five years the annualized figures are +9.72% and +5.02% respectively. Across the full 13-year window we track, SCHD has the edge at +11.39% annualized vs +3.17%. 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 6.2% for USDU. 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 -14.5% for USDU. 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 -0.43. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while USDU charges 0.51%. On a $10,000 position that is $6 vs $51 annually, a gap of $45 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 3.70% for USDU.

Holdings Overlap

0.0%overlap

SCHD and USDU 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 USDU?

SCHD has an expense ratio of 0.06% while USDU charges 0.51%. SCHD is the cheaper option. On a $10,000 investment, that is $45 per year of difference.

Which performed better, SCHD or USDU?

Over the past year SCHD returned +31.38% vs +4.24% for USDU, so SCHD leads on 1-year performance. Over the longest common window we track (13 years), SCHD annualized +11.39% vs +3.17% for USDU. Past performance does not guarantee future results.

Which is riskier, SCHD or USDU?

SCHD has been the more volatile fund at 13.6% annualized versus 6.2% for USDU. Worst drawdown: SCHD -33.4% vs USDU -14.5%.

Should I hold both SCHD and USDU?

SCHD and USDU have a monthly-return correlation of -0.43, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and USDU?

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

Which pays a higher dividend, SCHD or USDU?

SCHD yields 3.31% while USDU yields 3.70%, so USDU currently pays the higher dividend yield.

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