SCHD vs USO
Schwab US Dividend Equity ETF vs United States Oil Fund
Quick Verdict
SCHD has a lower expense ratio. USO delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | USO | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.86% | |
| AUM | $103.7B | $2.2B | |
| Dividend Yield | 3.31% | 0.00% | |
| Holdings | 104 | 7 | |
| YTD Return | +24.26% | +71.08% | |
| 1Y Return | +31.38% | +60.69% | |
| 3Y Return (annualized) | +15.08% | +16.80% | |
| 5Y Return (annualized) | +9.72% | +20.44% | |
| Volatility (annualized) | 13.6% | 37.8% | |
| Max Drawdown | -33.4% | -98.2% | |
| Fund Family | Charles Schwab Asset Management | USCF Investments | |
| Category | Equity | Commodity | |
| Inception | Oct 20, 2011 | Apr 10, 2006 |
SCHD vs USO Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and United States Oil Fund (USO) is a ETF from USCF Investments. Over the past year SCHD returned +31.38% while USO returned +60.69%. Year to date, SCHD is up 24.26% versus a gain of 71.08% for USO.
Over three years, SCHD compounded at +15.08% per year against +16.80% for USO; over five years the annualized figures are +9.72% and +20.44% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs -7.25%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
USO has been the more volatile fund, with annualized monthly volatility of 37.8% 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 -98.2% for USO. 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 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while USO charges 0.86%. On a $10,000 position that is $6 vs $86 annually, a gap of $80 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.00% for USO.
Holdings Overlap
SCHD and USO share 0 holdings out of 102 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 USO?
SCHD has an expense ratio of 0.06% while USO charges 0.86%. SCHD is the cheaper option. On a $10,000 investment, that is $80 per year of difference.
Which performed better, SCHD or USO?
Over the past year SCHD returned +31.38% vs +60.69% for USO, so USO leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs -7.25% for USO. Past performance does not guarantee future results.
Which is riskier, SCHD or USO?
USO has been the more volatile fund at 37.8% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs USO -98.2%.
Should I hold both SCHD and USO?
SCHD and USO have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and USO?
SCHD and USO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 102 unique securities.
Which pays a higher dividend, SCHD or USO?
SCHD yields 3.31% while USO yields 0.00%, so SCHD currently pays the higher dividend yield.
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