SCHD vs XDEC

SCHD vs XDEC

Which is better, SCHD or XDEC?

Large Cap Value against Option Writing.

SCHD has a lower expense ratio. SCHD led over 1Y, 3Y and the full window.

Lower Fees: SCHDHigher Returns: SCHD

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

MetricSCHDXDEC
Expense Ratio0.06%Best0.85%
AUM$112.1B$204M
Dividend Yield3.00%0.00%
Holdings10312
YTD Return+23.46%Best+6.77%
1Y Return+27.20%Best+9.42%
3Y Return (annualized)+15.41%Best+9.60%
5Y Return (annualized)+10.16%-
Volatility (annualized)14.9%6.9%Best
Max Drawdown-16.9%-11.8%Best
$10,000 over 4.7 years$15,162Best$14,414
Fund FamilyCharles Schwab Asset ManagementFirst Trust Portfolios (US)
CategoryEquityAlternative
StyleLarge Cap ValueOption Writing
InceptionOct 20, 2011Dec 17, 2021

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown, and the $10,000 over 4.7 years row, are measured over the window both funds cover: Dec 20, 2021 to Sep 18, 2026 (4.7 years).

SCHD vs XDEC 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 4.7 years both funds cover.

SCHD vs XDEC Performance

Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and FT Vest US Equity Enhance & Moderate Buffer ETF - December (XDEC) is an ETF from First Trust Portfolios (US). Over the past year SCHD returned +27.20% while XDEC returned +9.42%. Year to date, SCHD is up 23.46% versus a gain of 6.77% for XDEC.

Over three years, SCHD compounded at +15.41% per year against +9.60% for XDEC.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 14.9% 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 -16.9% for SCHD and -11.8% for XDEC. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.65. They move together some of the time, and apart the rest.

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 3.00% against 0.00% for XDEC.

You are not choosing between two funds in isolation.

Whichever of SCHD and XDEC you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

SCHDXDEC

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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, by $79 a year on a $10,000 investment.

Which performed better, SCHD or XDEC?

Over the past year SCHD returned +27.20% vs +9.42% for XDEC, so SCHD leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, SCHD or XDEC?

SCHD has been the more volatile fund at 14.9% annualized versus 6.9% for XDEC. Worst drawdown: SCHD -16.9% vs XDEC -11.8%.

Should I hold both SCHD and XDEC?

SCHD and XDEC have a monthly-return correlation of 0.65, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, SCHD or XDEC?

SCHD yields 3.00% while XDEC yields 0.00%, so SCHD currently pays the higher dividend yield.

Is XDEC better than SCHD?

SCHD has a lower expense ratio. SCHD led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.