SCHD vs XBI
Schwab US Dividend Equity ETF vs State Street SPDR S&P Biotech ETF
Which is better, SCHD or XBI?
Large Cap Value against Small Cap Blend.
SCHD has a lower expense ratio. SCHD led over 5Y, XBI over 1Y, 3Y and the full window. XBI is less concentrated, with 13.9% of the fund in its ten largest positions against 41.8%.
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 | XBI |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.35% |
| AUM | $112.1B | $11.5B |
| Dividend Yield | 3.00% | 0.35% |
| Holdings | 103 | 160 |
| YTD Return | +24.59% | +29.18%Best |
| 1Y Return | +28.14% | +67.77%Best |
| 3Y Return (annualized) | +15.58% | +26.05%Best |
| 5Y Return (annualized) | +9.90%Best | +3.68% |
| Volatility (annualized) | 13.6%Best | 28.2% |
| Max Drawdown | -33.4%Best | -63.9% |
| $10,000 over 5 years | $16,032Best | $11,980 |
| Top 10 Weight | 41.8% | 13.9%Best |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Small Cap Blend |
| Inception | Oct 20, 2011 | Jan 31, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 10, 2026 (14.9 years).
SCHD vs XBI 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 XBI Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and State Street SPDR S&P Biotech ETF (XBI) is an ETF from State Street Investment Management. Over the past year SCHD returned +28.14% while XBI returned +67.77%. Year to date, SCHD is up 24.59% versus a gain of 29.18% for XBI.
Over three years, SCHD compounded at +15.58% per year against +26.05% for XBI; over five years the annualized figures are +9.90% and +3.68% respectively. Across the full 15-year window we track, XBI has the edge at +14.43% annualized vs +11.34%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XBI has been the more volatile fund, with annualized monthly volatility of 28.2% 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 -63.9% for XBI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.40. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SCHD charges 0.06% per year while XBI 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 3.00% against 0.35% for XBI.
Holdings Overlap
4.8% of SCHD's money is in holdings XBI also owns. 1.2% of XBI's money is in holdings SCHD also owns.
SCHD and XBI share little of their money.
2 positions in common, counted across the 100 positions we hold weights for in SCHD and 151 in XBI, against full books of 103 and 160.
What only one of them owns
Our book lists 142 positions for XBI that do not appear in our book for SCHD (93.9% of the fund), and 97 for SCHD that do not appear in XBI (95.2%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of SCHD and XBI 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 XBI?
SCHD has an expense ratio of 0.06% while XBI charges 0.35%. SCHD is the cheaper option, by $29 a year on a $10,000 investment.
Which performed better, SCHD or XBI?
Over the past year SCHD returned +28.14% vs +67.77% for XBI, so XBI leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.34% vs +14.43% for XBI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or XBI?
XBI has been the more volatile fund at 28.2% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs XBI -63.9%.
Should I hold both SCHD and XBI?
SCHD and XBI have a monthly-return correlation of 0.40, 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 XBI?
4.8% of SCHD's money is in holdings XBI also owns. 1.2% of XBI's is in holdings SCHD also owns. They hold 2 positions in common, counted across the 100 positions we hold weights for in SCHD and 151 in XBI.
Which pays a higher dividend, SCHD or XBI?
SCHD yields 3.00% while XBI yields 0.35%, so SCHD currently pays the higher dividend yield.
Is XBI better than SCHD?
SCHD has a lower expense ratio. SCHD led over 5Y, XBI over 1Y, 3Y and the full window. XBI is less concentrated, with 13.9% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.