SCHD vs VALQ
Schwab US Dividend Equity ETF vs American Century US Quality Value ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. VALQ offers more diversification with 223 holdings.
Side-by-Side Comparison
| Metric | SCHD | VALQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.29% | |
| AUM | $103.7B | $330M | |
| Dividend Yield | 3.31% | 1.80% | |
| Holdings | 104 | 227 | |
| YTD Return | +24.26% | +9.40% | |
| 1Y Return | +31.38% | +18.34% | |
| 3Y Return (annualized) | +15.08% | +14.60% | |
| 5Y Return (annualized) | +9.72% | +9.14% | |
| Volatility (annualized) | 13.6% | 16.2% | |
| Max Drawdown | -33.4% | -38.2% | |
| Fund Family | Charles Schwab Asset Management | American Century Investments | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Jan 11, 2018 |
SCHD vs VALQ Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and American Century US Quality Value ETF (VALQ) is a ETF from American Century Investments. Over the past year SCHD returned +31.38% while VALQ returned +18.34%. Year to date, SCHD is up 24.26% versus a gain of 9.40% for VALQ.
Over three years, SCHD compounded at +15.08% per year against +14.60% for VALQ; over five years the annualized figures are +9.72% and +9.14% respectively. Across the full 9-year window we track, SCHD has the edge at +11.39% annualized vs +8.28%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VALQ has been the more volatile fund, with annualized monthly volatility of 16.2% 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 -38.2% for VALQ. 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
SCHD charges 0.06% per year while VALQ charges 0.29%. On a $10,000 position that is $6 vs $29 annually, a gap of $23 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 1.80% for VALQ.
Holdings Overlap
SCHD and VALQ share 33 holdings out of 290 unique holdings combined, representing a 26.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or VALQ?
SCHD has an expense ratio of 0.06% while VALQ charges 0.29%. SCHD is the cheaper option. On a $10,000 investment, that is $23 per year of difference.
Which performed better, SCHD or VALQ?
Over the past year SCHD returned +31.38% vs +18.34% for VALQ, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), SCHD annualized +11.39% vs +8.28% for VALQ. Past performance does not guarantee future results.
Which is riskier, SCHD or VALQ?
VALQ has been the more volatile fund at 16.2% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs VALQ -38.2%.
Should I hold both SCHD and VALQ?
SCHD and VALQ have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between SCHD and VALQ?
SCHD and VALQ share 33 common holdings with a 26.1% weight overlap. Combined, they hold 290 unique securities.
Which pays a higher dividend, SCHD or VALQ?
SCHD yields 3.31% while VALQ yields 1.80%, so SCHD currently pays the higher dividend yield.
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