SCHD vs XDSQ

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

MetricSCHDXDSQWinner
Expense Ratio0.06%0.79%
AUM$103.7B$70M
Dividend Yield3.31%0.00%
Holdings1047
YTD Return+25.58%+6.89%
1Y Return+31.06%+14.59%
3Y Return (annualized)+15.55%+15.44%
5Y Return (annualized)+9.61%+9.76%
Volatility (annualized)13.6%13.5%
Max Drawdown-33.4%-26.1%
Fund FamilyCharles Schwab Asset ManagementInnovator ETFs Trust
CategoryEquityAlternative
InceptionOct 20, 2011Mar 31, 2021

SCHD vs XDSQ Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Innovator US Equity Accelerated ETF - Quarterly (XDSQ) is a ETF from Innovator ETFs Trust. Over the past year SCHD returned +31.06% while XDSQ returned +14.59%. Year to date, SCHD is up 25.58% versus a gain of 6.89% for XDSQ.

Over three years, SCHD compounded at +15.55% per year against +15.44% for XDSQ; over five years the annualized figures are +9.61% and +9.76% respectively. Across the full 5-year window we track, SCHD has the edge at +11.46% annualized vs +10.84%. 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 13.5% for XDSQ. 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 -26.1% for XDSQ. 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 XDSQ 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 XDSQ.

Holdings Overlap

0.0%overlap

SCHD and XDSQ 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 XDSQ?

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

Over the past year SCHD returned +31.06% vs +14.59% for XDSQ, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), SCHD annualized +11.46% vs +10.84% for XDSQ. Past performance does not guarantee future results.

Which is riskier, SCHD or XDSQ?

SCHD has been the more volatile fund at 13.6% annualized versus 13.5% for XDSQ. Worst drawdown: SCHD -33.4% vs XDSQ -26.1%.

Should I hold both SCHD and XDSQ?

SCHD and XDSQ 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 XDSQ?

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

Which pays a higher dividend, SCHD or XDSQ?

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

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