SCHD vs XAR
Schwab US Dividend Equity ETF vs State Street SPDR S&P Aerospace & Defense ETF
Quick Verdict
SCHD has a lower expense ratio. XAR delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | XAR | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.35% | |
| AUM | $103.7B | $6.1B | |
| Dividend Yield | 3.31% | 0.28% | |
| Holdings | 104 | 49 | |
| YTD Return | +24.26% | +14.62% | |
| 1Y Return | +31.38% | +33.67% | |
| 3Y Return (annualized) | +15.08% | +33.45% | |
| 5Y Return (annualized) | +9.72% | +18.59% | |
| Volatility (annualized) | 13.6% | 20.4% | |
| Max Drawdown | -33.4% | -46.7% | |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Sep 28, 2011 |
SCHD vs XAR Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and State Street SPDR S&P Aerospace & Defense ETF (XAR) is a ETF from State Street Investment Management. Over the past year SCHD returned +31.38% while XAR returned +33.67%. Year to date, SCHD is up 24.26% versus a gain of 14.62% for XAR.
Over three years, SCHD compounded at +15.08% per year against +33.45% for XAR; over five years the annualized figures are +9.72% and +18.59% respectively. Across the full 15-year window we track, XAR has the edge at +18.02% annualized vs +11.39%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XAR has been the more volatile fund, with annualized monthly volatility of 20.4% 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 -46.7% for XAR. 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while XAR 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 0.28% for XAR.
Holdings Overlap
SCHD and XAR share 1 holdings out of 147 unique holdings combined, representing a 2.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in XAR | Difference |
|---|---|---|---|
| LMT | 2.66% | 2.59% | 0.07% |
Frequently Asked Questions
Which is cheaper, SCHD or XAR?
SCHD has an expense ratio of 0.06% while XAR 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 XAR?
Over the past year SCHD returned +31.38% vs +33.67% for XAR, so XAR leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs +18.02% for XAR. Past performance does not guarantee future results.
Which is riskier, SCHD or XAR?
XAR has been the more volatile fund at 20.4% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs XAR -46.7%.
Should I hold both SCHD and XAR?
SCHD and XAR have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and XAR?
SCHD and XAR share 1 common holdings with a 2.6% weight overlap. Combined, they hold 147 unique securities.
Which pays a higher dividend, SCHD or XAR?
SCHD yields 3.31% while XAR yields 0.28%, so SCHD currently pays the higher dividend yield.
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