SCHD vs XAR
Schwab US Dividend Equity ETF vs State Street SPDR S&P Aerospace & Defense ETF
Which is better, SCHD or XAR?
Large Cap Value against Mid Cap Growth.
SCHD has a lower expense ratio. SCHD led over 1Y, XAR over 3Y, 5Y and the full window. XAR is less concentrated, with 31.1% of the fund in its ten largest positions against 41.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SCHD | XAR |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.35% |
| AUM | $112.2B | $6.0B |
| Dividend Yield | 3.13% | 0.31% |
| Holdings | 103 | 48 |
| YTD Return | +27.56%Best | +1.07% |
| 1Y Return | +30.29%Best | +17.88% |
| 3Y Return (annualized) | +16.37% | +28.71%Best |
| 5Y Return (annualized) | +10.23% | +16.56%Best |
| Volatility (annualized) | 13.6%Best | 20.1% |
| Max Drawdown | -33.4%Best | -46.7% |
| $10,000 over 5 years | $16,274 | $21,515Best |
| Top 10 Weight | 41.5% | 31.1%Best |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Mid Cap Growth |
| Inception | Oct 20, 2011 | Sep 28, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 4, 2026 (14.9 years).
SCHD vs XAR growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 14.9 years both funds cover.
SCHD vs XAR Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and State Street SPDR S&P Aerospace & Defense ETF (XAR) is an ETF from State Street Investment Management. Over the past year SCHD returned +30.29% while XAR returned +17.88%. Year to date, SCHD is up 27.56% versus a gain of 1.07% for XAR.
Over three years, SCHD compounded at +16.37% per year against +28.71% for XAR; over five years the annualized figures are +10.23% and +16.56% respectively. Across the full 15-year window we track, XAR has the edge at +16.36% annualized vs +11.53%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XAR has been the more volatile fund, with annualized monthly volatility of 20.1% 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 -46.7% for XAR. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.68. They move together some of the time, and apart the rest.
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 3.13% against 0.31% for XAR.
Holdings Overlap
3.0% of SCHD's money is in holdings XAR also owns. 2.9% of XAR's money is in holdings SCHD also owns.
SCHD and XAR share little of their money.
1 positions in common, counted across the 100 positions we hold weights for in SCHD and 48 in XAR, against full books of 103 and 48.
What only one of them owns
Measured across the 100 and 48 positions we hold weights for.
SCHD holds 98 positions XAR does not, 96.9% of the fund.
Largest: ABT 4.70%, AMGN 4.62%, HD 4.32%, MRK 4.26%, KO 4.20%
Top Shared Holdings
| Stock | Weight in SCHD | Weight in XAR | Difference |
|---|---|---|---|
| LMTLockheed Martin Corp | 2.99% | 2.91% | 0.08% |
You are not choosing between two funds in isolation.
Whichever of SCHD and XAR you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $29 a year on a $10,000 investment.
Which performed better, SCHD or XAR?
Over the past year SCHD returned +30.29% vs +17.88% for XAR, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.53% vs +16.36% for XAR. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or XAR?
XAR has been the more volatile fund at 20.1% 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 0.68, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between SCHD and XAR?
3.0% of SCHD's money is in holdings XAR also owns. 2.9% of XAR's is in holdings SCHD also owns. They hold 1 positions in common, counted across the 100 positions we hold weights for in SCHD and 48 in XAR.
Which pays a higher dividend, SCHD or XAR?
SCHD yields 3.13% while XAR yields 0.31%, so SCHD currently pays the higher dividend yield.
Is XAR better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, XAR over 3Y, 5Y and the full window. XAR is less concentrated, with 31.1% of the fund in its ten largest positions against 41.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.