SCHD vs XHE
Schwab US Dividend Equity ETF vs State Street SPDR S&P Health Care Equipment ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | SCHD | XHE | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.35% | |
| AUM | $103.7B | $155M | |
| Dividend Yield | 3.31% | 0.06% | |
| Holdings | 104 | 69 | |
| YTD Return | +26.21% | +8.93% | |
| 1Y Return | +29.99% | +17.53% | |
| 3Y Return (annualized) | +15.73% | +2.06% | |
| 5Y Return (annualized) | +9.67% | -5.00% | |
| Volatility (annualized) | 13.6% | 18.8% | |
| Max Drawdown | -33.4% | -49.9% | |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Jan 26, 2011 |
SCHD vs XHE Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and State Street SPDR S&P Health Care Equipment ETF (XHE) is a ETF from State Street Investment Management. Over the past year SCHD returned +29.99% while XHE returned +17.53%. Year to date, SCHD is up 26.21% versus a gain of 8.93% for XHE.
Over three years, SCHD compounded at +15.73% per year against +2.06% for XHE; over five years the annualized figures are +9.67% and -5.00% respectively. Across the full 15-year window we track, SCHD has the edge at +11.50% annualized vs +9.87%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XHE has been the more volatile fund, with annualized monthly volatility of 18.8% 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 -49.9% for XHE. 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while XHE charges 0.35%. On a $10,000 position that is $6 vs $35 annually, a gap of $29 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.06% for XHE.
Holdings Overlap
SCHD and XHE share 1 holdings out of 168 unique holdings combined, representing a 1.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in XHE | Difference |
|---|---|---|---|
| ABT | 4.49% | 1.66% | 2.83% |
Frequently Asked Questions
Which is cheaper, SCHD or XHE?
SCHD has an expense ratio of 0.06% while XHE charges 0.35%. SCHD is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, SCHD or XHE?
Over the past year SCHD returned +29.99% vs +17.53% for XHE, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.50% vs +9.87% for XHE. Past performance does not guarantee future results.
Which is riskier, SCHD or XHE?
XHE has been the more volatile fund at 18.8% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs XHE -49.9%.
Should I hold both SCHD and XHE?
SCHD and XHE have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and XHE?
SCHD and XHE share 1 common holdings with a 1.7% weight overlap. Combined, they hold 168 unique securities.
Which pays a higher dividend, SCHD or XHE?
SCHD yields 3.31% while XHE yields 0.06%, so SCHD currently pays the higher dividend yield.
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