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

MetricSCHDXDQQWinner
Expense Ratio0.06%0.79%
AUM$103.7B$57M
Dividend Yield3.31%0.00%
Holdings1045
YTD Return+24.26%+2.36%
1Y Return+31.38%+11.65%
3Y Return (annualized)+15.08%+16.72%
5Y Return (annualized)+9.72%+6.88%
Volatility (annualized)13.6%17.4%
Max Drawdown-33.4%-35.6%
Fund FamilyCharles Schwab Asset ManagementInnovator ETFs Trust
CategoryEquityAlternative
InceptionOct 20, 2011Mar 31, 2021

SCHD vs XDQQ Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Innovator Growth-100 Accelerated ETF - Quarterly (XDQQ) is a ETF from Innovator ETFs Trust. Over the past year SCHD returned +31.38% while XDQQ returned +11.65%. Year to date, SCHD is up 24.26% versus a gain of 2.36% for XDQQ.

Over three years, SCHD compounded at +15.08% per year against +16.72% for XDQQ; over five years the annualized figures are +9.72% and +6.88% respectively. Across the full 5-year window we track, SCHD has the edge at +11.39% annualized vs +8.61%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

XDQQ has been the more volatile fund, with annualized monthly volatility of 17.4% 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 -35.6% for XDQQ. 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while XDQQ charges 0.79%. On a $10,000 position that is $6 vs $79 annually, a gap of $73 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.00% for XDQQ.

Frequently Asked Questions

Which is cheaper, SCHD or XDQQ?

SCHD has an expense ratio of 0.06% while XDQQ charges 0.79%. SCHD is the cheaper option. On a $10,000 investment, that is $73 per year of difference.

Which performed better, SCHD or XDQQ?

Over the past year SCHD returned +31.38% vs +11.65% for XDQQ, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), SCHD annualized +11.39% vs +8.61% for XDQQ. Past performance does not guarantee future results.

Which is riskier, SCHD or XDQQ?

XDQQ has been the more volatile fund at 17.4% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs XDQQ -35.6%.

Should I hold both SCHD and XDQQ?

SCHD and XDQQ have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, SCHD or XDQQ?

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

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