SCHD vs XFLT
Schwab US Dividend Equity ETF vs XAI Octagon Floating Rate & Alternative Income Trust
Which is better, SCHD or XFLT?
Large Cap Value against Bank Loan.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.
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 | XFLT |
|---|---|---|
| Expense Ratio | 0.06%Best | 6.29% |
| AUM | $112.1B | $347M |
| Dividend Yield | 3.00% | 15.04% |
| Holdings | 103 | 509 |
| YTD Return | +25.07%Best | -0.94% |
| 1Y Return | +27.61%Best | -11.58% |
| 3Y Return (annualized) | +15.74%Best | -1.64% |
| 5Y Return (annualized) | +9.89%Best | -0.52% |
| Volatility (annualized) | 16.0%Best | 25.6% |
| Max Drawdown | -33.4%Best | -64.6% |
| $10,000 over 5 years | $16,025Best | $9,743 |
| Fund Family | Charles Schwab Asset Management | XA Investments LLC |
| Category | Equity | Fixed Income |
| Style | Large Cap Value | Bank Loan |
| Inception | Oct 20, 2011 | Sep 27, 2017 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 27, 2017 to Sep 11, 2026 (9 years).
SCHD vs XFLT 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 9 years both funds cover.
SCHD vs XFLT Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and XAI Octagon Floating Rate & Alternative Income Trust (XFLT) is an ETF from XA Investments LLC. Over the past year SCHD returned +27.61% while XFLT returned -11.58%. Year to date, SCHD is up 25.07% versus a loss of 0.94% for XFLT.
Over three years, SCHD compounded at +15.74% per year against -1.64% for XFLT; over five years the annualized figures are +9.89% and -0.52% respectively. Across the full 9-year window we track, SCHD has the edge at +11.55% annualized vs -1.22%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XFLT has been the more volatile fund, with annualized monthly volatility of 25.6% compared with 16.0% 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 -64.6% for XFLT. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.38. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SCHD charges 0.06% per year while XFLT charges 6.29%. On a $10,000 position that is $6 vs $629 annually, a gap of $623 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 15.04% for XFLT.
Holdings Overlap
We hold position weights for 100 holdings in SCHD and 150 in XFLT, totalling 100.0% and 46.3% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 153 days apart, SCHD as of Aug 31, 2026 and XFLT as of Mar 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 100 positions we hold weights for in SCHD and 150 in XFLT, against full books of 103 and 509.
You are not choosing between two funds in isolation.
Whichever of SCHD and XFLT 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 XFLT?
SCHD has an expense ratio of 0.06% while XFLT charges 6.29%. SCHD is the cheaper option, by $623 a year on a $10,000 investment.
Which performed better, SCHD or XFLT?
Over the past year SCHD returned +27.61% vs -11.58% for XFLT, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), SCHD annualized +11.55% vs -1.22% for XFLT. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or XFLT?
XFLT has been the more volatile fund at 25.6% annualized versus 16.0% for SCHD. Worst drawdown: SCHD -33.4% vs XFLT -64.6%.
Should I hold both SCHD and XFLT?
SCHD and XFLT have a monthly-return correlation of 0.38, 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 XFLT?
SCHD yields 3.00% while XFLT yields 15.04%, so XFLT currently pays the higher dividend yield.
Is XFLT better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.