Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricSCHDXAUGWinner
Expense Ratio0.06%0.85%
AUM$103.7B$24M
Dividend Yield3.31%0.00%
Holdings1046
YTD Return+24.26%+5.32%
1Y Return+31.38%+9.36%
3Y Return (annualized)+15.08%+9.89%
5Y Return (annualized)+9.72%-
Volatility (annualized)13.6%4.4%
Max Drawdown-33.4%-8.7%
Fund FamilyCharles Schwab Asset ManagementFirst Trust Portfolios (US)
CategoryEquityAlternative
InceptionOct 20, 2011Aug 18, 2023

SCHD vs XAUG Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and FT Vest US Equity Enhance & Moderate Buffer ETF - August (XAUG) is a ETF from First Trust Portfolios (US). Over the past year SCHD returned +31.38% while XAUG returned +9.36%. Year to date, SCHD is up 24.26% versus a gain of 5.32% for XAUG.

Over three years, SCHD compounded at +15.08% per year against +9.89% for XAUG. Across the full 3-year window we track, SCHD has the edge at +11.39% annualized vs +9.89%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 4.4% for XAUG. 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 -8.7% for XAUG. 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while XAUG charges 0.85%. On a $10,000 position that is $6 vs $85 annually, a gap of $79 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.00% for XAUG.

Holdings Overlap

0.0%overlap

SCHD and XAUG share 0 holdings out of 101 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, SCHD or XAUG?

SCHD has an expense ratio of 0.06% while XAUG charges 0.85%. SCHD is the cheaper option. On a $10,000 investment, that is $79 per year of difference.

Which performed better, SCHD or XAUG?

Over the past year SCHD returned +31.38% vs +9.36% for XAUG, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), SCHD annualized +11.39% vs +9.89% for XAUG. Past performance does not guarantee future results.

Which is riskier, SCHD or XAUG?

SCHD has been the more volatile fund at 13.6% annualized versus 4.4% for XAUG. Worst drawdown: SCHD -33.4% vs XAUG -8.7%.

Should I hold both SCHD and XAUG?

SCHD and XAUG have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and XAUG?

SCHD and XAUG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 101 unique securities.

Which pays a higher dividend, SCHD or XAUG?

SCHD yields 3.31% while XAUG yields 0.00%, so SCHD currently pays the higher dividend yield.

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