SCHD vs USFR
Schwab US Dividend Equity ETF vs WisdomTree Floating Rate Treasury Fund
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | USFR | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.15% | |
| AUM | $103.7B | $18.3B | |
| Dividend Yield | 3.31% | 3.84% | |
| Holdings | 104 | 6 | |
| YTD Return | +24.26% | +2.31% | |
| 1Y Return | +31.38% | +3.99% | |
| 3Y Return (annualized) | +15.08% | +4.53% | |
| 5Y Return (annualized) | +9.72% | +3.73% | |
| Volatility (annualized) | 13.6% | 0.9% | |
| Max Drawdown | -33.4% | -1.4% | |
| Fund Family | Charles Schwab Asset Management | WisdomTree Investments | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Feb 4, 2014 |
SCHD vs USFR Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and WisdomTree Floating Rate Treasury Fund (USFR) is a ETF from WisdomTree Investments. Over the past year SCHD returned +31.38% while USFR returned +3.99%. Year to date, SCHD is up 24.26% versus a gain of 2.31% for USFR.
Over three years, SCHD compounded at +15.08% per year against +4.53% for USFR; over five years the annualized figures are +9.72% and +3.73% respectively. Across the full 13-year window we track, SCHD has the edge at +11.39% annualized vs +1.49%. 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 0.9% for USFR. 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 -1.4% for USFR. 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 0.03. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while USFR charges 0.15%. On a $10,000 position that is $6 vs $15 annually, a gap of $9 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 3.84% for USFR.
Holdings Overlap
SCHD and USFR 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 USFR?
SCHD has an expense ratio of 0.06% while USFR charges 0.15%. SCHD is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, SCHD or USFR?
Over the past year SCHD returned +31.38% vs +3.99% for USFR, so SCHD leads on 1-year performance. Over the longest common window we track (13 years), SCHD annualized +11.39% vs +1.49% for USFR. Past performance does not guarantee future results.
Which is riskier, SCHD or USFR?
SCHD has been the more volatile fund at 13.6% annualized versus 0.9% for USFR. Worst drawdown: SCHD -33.4% vs USFR -1.4%.
Should I hold both SCHD and USFR?
SCHD and USFR have a monthly-return correlation of 0.03, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and USFR?
SCHD and USFR share 0 common holdings with a 0.0% weight overlap. Combined, they hold 101 unique securities.
Which pays a higher dividend, SCHD or USFR?
SCHD yields 3.31% while USFR yields 3.84%, so USFR currently pays the higher dividend yield.
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