Quick Verdict

SCHD has a lower expense ratio. XAIX delivered stronger 1-year returns. XAIX offers more diversification with 103 holdings.

Lower Fees: SCHDHigher Returns: XAIXMore Diversified: XAIX

Side-by-Side Comparison

MetricSCHDXAIXWinner
Expense Ratio0.06%0.35%
AUM$103.7B$160M
Dividend Yield3.31%0.39%
Holdings10494
YTD Return+24.26%+30.65%
1Y Return+31.38%+45.85%
3Y Return (annualized)+15.08%-
5Y Return (annualized)+9.72%-
Volatility (annualized)13.6%26.1%
Max Drawdown-33.4%-23.9%
Fund FamilyCharles Schwab Asset ManagementXtrackers ETFs
CategoryEquityEquity
InceptionOct 20, 2011Jun 4, 2024

SCHD vs XAIX Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Xtrackers Artificial Intelligence and Big Data ETF (XAIX) is a ETF from Xtrackers ETFs. Over the past year SCHD returned +31.38% while XAIX returned +45.85%. Year to date, SCHD is up 24.26% versus a gain of 30.65% for XAIX.

Risk: Volatility and Drawdowns

XAIX has been the more volatile fund, with annualized monthly volatility of 26.1% 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 -23.9% for XAIX. 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 0.09. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while XAIX charges 0.35%. On a $10,000 position that is $6 vs $35 annually, a gap of $29 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.39% for XAIX.

Holdings Overlap

2.6%overlap

SCHD and XAIX share 2 holdings out of 201 unique holdings combined, representing a 2.6% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SCHDWeight in XAIXDifference
VZ3.68%1.77%1.91%
ACN2.24%0.82%1.42%

Frequently Asked Questions

Which is cheaper, SCHD or XAIX?

SCHD has an expense ratio of 0.06% while XAIX charges 0.35%. SCHD is the cheaper option. On a $10,000 investment, that is $29 per year of difference.

Which performed better, SCHD or XAIX?

Over the past year SCHD returned +31.38% vs +45.85% for XAIX, so XAIX leads on 1-year performance. Over the longest common window we track (2 years), SCHD annualized +11.39% vs +39.71% for XAIX. Past performance does not guarantee future results.

Which is riskier, SCHD or XAIX?

XAIX has been the more volatile fund at 26.1% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs XAIX -23.9%.

Should I hold both SCHD and XAIX?

SCHD and XAIX have a monthly-return correlation of 0.09, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and XAIX?

SCHD and XAIX share 2 common holdings with a 2.6% weight overlap. Combined, they hold 201 unique securities.

Which pays a higher dividend, SCHD or XAIX?

SCHD yields 3.31% while XAIX yields 0.39%, so SCHD currently pays the higher dividend yield.

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