SCHD vs USSG
Schwab US Dividend Equity ETF vs Xtrackers MSCI USA Selection Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. USSG offers more diversification with 264 holdings.
Side-by-Side Comparison
| Metric | SCHD | USSG | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.09% | |
| AUM | $103.7B | $556M | |
| Dividend Yield | 3.31% | 0.99% | |
| Holdings | 104 | 265 | |
| YTD Return | +25.33% | +13.79% | |
| 1Y Return | +32.31% | +24.91% | |
| 3Y Return (annualized) | +15.40% | +22.24% | |
| 5Y Return (annualized) | +9.70% | +13.46% | |
| Volatility (annualized) | 13.6% | 16.9% | |
| Max Drawdown | -33.4% | -34.4% | |
| Fund Family | Charles Schwab Asset Management | Xtrackers ETFs | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Mar 6, 2019 |
SCHD vs USSG Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Xtrackers MSCI USA Selection Equity ETF (USSG) is a ETF from Xtrackers ETFs. Over the past year SCHD returned +32.31% while USSG returned +24.91%. Year to date, SCHD is up 25.33% versus a gain of 13.79% for USSG.
Over three years, SCHD compounded at +15.40% per year against +22.24% for USSG; over five years the annualized figures are +9.70% and +13.46% respectively. Across the full 7-year window we track, USSG has the edge at +16.57% annualized vs +11.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
USSG has been the more volatile fund, with annualized monthly volatility of 16.9% 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 -34.4% for USSG. 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while USSG charges 0.09%. On a $10,000 position that is $6 vs $9 annually, a gap of $3 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.99% for USSG.
Holdings Overlap
SCHD and USSG share 26 holdings out of 338 unique holdings combined, representing a 8.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or USSG?
SCHD has an expense ratio of 0.06% while USSG charges 0.09%. SCHD is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHD or USSG?
Over the past year SCHD returned +32.31% vs +24.91% for USSG, so SCHD leads on 1-year performance. Over the longest common window we track (7 years), SCHD annualized +11.45% vs +16.57% for USSG. Past performance does not guarantee future results.
Which is riskier, SCHD or USSG?
USSG has been the more volatile fund at 16.9% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs USSG -34.4%.
Should I hold both SCHD and USSG?
SCHD and USSG have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and USSG?
SCHD and USSG share 26 common holdings with a 8.5% weight overlap. Combined, they hold 338 unique securities.
Which pays a higher dividend, SCHD or USSG?
SCHD yields 3.31% while USSG yields 0.99%, so SCHD currently pays the higher dividend yield.
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