SCHD vs USEP
Schwab US Dividend Equity ETF vs Innovator U.S. Equity Ultra Buffer ETF - September
Which is better, SCHD or USEP?
Large Cap Value against Option Writing.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SCHD | USEP |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.79% |
| AUM | $112.1B | $145M |
| Dividend Yield | 3.00% | 0.00% |
| Holdings | 103 | 12 |
| YTD Return | +24.23%Best | +6.65% |
| 1Y Return | +27.90%Best | +8.93% |
| 3Y Return (annualized) | +15.55%Best | +11.99% |
| 5Y Return (annualized) | +9.97%Best | +8.39% |
| Volatility (annualized) | 16.5% | 7.0%Best |
| Max Drawdown | -33.4% | -13.4%Best |
| $10,000 over 5 years | $16,083Best | $14,960 |
| Fund Family | Charles Schwab Asset Management | Innovator ETFs Trust |
| Category | Equity | Alternative |
| Style | Large Cap Value | Option Writing |
| Inception | Oct 20, 2011 | Aug 30, 2019 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 3, 2019 to Sep 17, 2026 (7 years).
SCHD vs USEP growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 7 years both funds cover.
SCHD vs USEP Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and Innovator U.S. Equity Ultra Buffer ETF - September (USEP) is an ETF from Innovator ETFs Trust. Over the past year SCHD returned +27.90% while USEP returned +8.93%. Year to date, SCHD is up 24.23% versus a gain of 6.65% for USEP.
Over three years, SCHD compounded at +15.55% per year against +11.99% for USEP; over five years the annualized figures are +9.97% and +8.39% respectively. Across the full 7-year window we track, SCHD has the edge at +12.75% annualized vs +7.97%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 16.5% compared with 7.0% for USEP. 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 -13.4% for USEP. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 USEP charges 0.79%. On a $10,000 position that is $6 vs $79 annually, a gap of $73 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 0.00% for USEP.
Holdings Overlap
We hold position weights for 100 holdings in SCHD and 1 in USEP, totalling 100.0% and 99.1% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 100 positions we hold weights for in SCHD and 1 in USEP, against full books of 103 and 12.
You are not choosing between two funds in isolation.
Whichever of SCHD and USEP you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SCHD or USEP?
SCHD has an expense ratio of 0.06% while USEP charges 0.79%. SCHD is the cheaper option, by $73 a year on a $10,000 investment.
Which performed better, SCHD or USEP?
Over the past year SCHD returned +27.90% vs +8.93% for USEP, so SCHD leads on 1-year performance. Over the longest common window we track (7 years), SCHD annualized +12.75% vs +7.97% for USEP. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or USEP?
SCHD has been the more volatile fund at 16.5% annualized versus 7.0% for USEP. Worst drawdown: SCHD -33.4% vs USEP -13.4%.
Should I hold both SCHD and USEP?
SCHD and USEP have a monthly-return correlation of 0.75, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, SCHD or USEP?
SCHD yields 3.00% while USEP yields 0.00%, so SCHD currently pays the higher dividend yield.
Is USEP better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.