SCHD vs XDEC

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

MetricSCHDXDECWinner
Expense Ratio0.06%0.85%
AUM$103.7B$202M
Dividend Yield3.31%0.00%
Holdings1046
YTD Return+24.26%+6.10%
1Y Return+31.38%+10.51%
3Y Return (annualized)+15.08%+9.78%
5Y Return (annualized)+9.72%-
Volatility (annualized)13.6%6.9%
Max Drawdown-33.4%-11.8%
Fund FamilyCharles Schwab Asset ManagementFirst Trust Portfolios (US)
CategoryEquityAlternative
InceptionOct 20, 2011Dec 17, 2021

SCHD vs XDEC Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and FT Vest US Equity Enhance & Moderate Buffer ETF - December (XDEC) is a ETF from First Trust Portfolios (US). Over the past year SCHD returned +31.38% while XDEC returned +10.51%. Year to date, SCHD is up 24.26% versus a gain of 6.10% for XDEC.

Over three years, SCHD compounded at +15.08% per year against +9.78% for XDEC. Across the full 5-year window we track, SCHD has the edge at +11.39% annualized vs +8.15%. 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 6.9% for XDEC. 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 -11.8% for XDEC. 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while XDEC 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 XDEC.

Holdings Overlap

0.0%overlap

SCHD and XDEC 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 XDEC?

SCHD has an expense ratio of 0.06% while XDEC 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 XDEC?

Over the past year SCHD returned +31.38% vs +10.51% for XDEC, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), SCHD annualized +11.39% vs +8.15% for XDEC. Past performance does not guarantee future results.

Which is riskier, SCHD or XDEC?

SCHD has been the more volatile fund at 13.6% annualized versus 6.9% for XDEC. Worst drawdown: SCHD -33.4% vs XDEC -11.8%.

Should I hold both SCHD and XDEC?

SCHD and XDEC have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and XDEC?

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

Which pays a higher dividend, SCHD or XDEC?

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

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