SCHD vs XHE
Schwab US Dividend Equity ETF vs State Street SPDR S&P Health Care Equipment ETF
Which is better, SCHD or XHE?
Large Cap Value against Mid Cap Growth.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. XHE is less concentrated, with 21.3% of the fund in its ten largest positions against 41.5%.
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 | XHE |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.35% |
| AUM | $112.2B | $181M |
| Dividend Yield | 3.13% | 0.06% |
| Holdings | 103 | 69 |
| YTD Return | +28.59%Best | +7.74% |
| 1Y Return | +31.77%Best | +16.78% |
| 3Y Return (annualized) | +16.70%Best | +3.54% |
| 5Y Return (annualized) | +10.09%Best | -6.62% |
| Volatility (annualized) | 13.6%Best | 18.9% |
| Max Drawdown | -33.4%Best | -49.9% |
| $10,000 over 5 years | $16,171Best | $7,100 |
| Top 10 Weight | 41.5% | 21.3%Best |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Mid Cap Growth |
| Inception | Oct 20, 2011 | Jan 26, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 3, 2026 (14.9 years).
SCHD vs XHE 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 14.9 years both funds cover.
SCHD vs XHE Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and State Street SPDR S&P Health Care Equipment ETF (XHE) is an ETF from State Street Investment Management. Over the past year SCHD returned +31.77% while XHE returned +16.78%. Year to date, SCHD is up 28.59% versus a gain of 7.74% for XHE.
Over three years, SCHD compounded at +16.70% per year against +3.54% for XHE; over five years the annualized figures are +10.09% and -6.62% respectively. Across the full 15-year window we track, SCHD has the edge at +11.59% annualized vs +10.80%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XHE has been the more volatile fund, with annualized monthly volatility of 18.9% 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 what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.62. They move together some of the time, and apart the rest.
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 3.13% against 0.06% for XHE.
Holdings Overlap
4.7% of SCHD's money is in holdings XHE also owns. 1.8% of XHE's money is in holdings SCHD also owns.
SCHD and XHE share little of their money.
1 positions in common, counted across the 100 positions we hold weights for in SCHD and 69 in XHE, against full books of 103 and 69.
What only one of them owns
Our book lists 65 positions for XHE that do not appear in our book for SCHD (95.5% of the fund), and 98 for SCHD that do not appear in XHE (95.2%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in XHE | Difference |
|---|---|---|---|
| ABTAbbott Laboratories | 4.70% | 1.75% | 2.95% |
You are not choosing between two funds in isolation.
Whichever of SCHD and XHE 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 XHE?
SCHD has an expense ratio of 0.06% while XHE charges 0.35%. SCHD is the cheaper option, by $29 a year on a $10,000 investment.
Which performed better, SCHD or XHE?
Over the past year SCHD returned +31.77% vs +16.78% for XHE, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.59% vs +10.80% for XHE. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or XHE?
XHE has been the more volatile fund at 18.9% 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 their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between SCHD and XHE?
4.7% of SCHD's money is in holdings XHE also owns. 1.8% of XHE's is in holdings SCHD also owns. They hold 1 positions in common, counted across the 100 positions we hold weights for in SCHD and 69 in XHE.
Which pays a higher dividend, SCHD or XHE?
SCHD yields 3.13% while XHE yields 0.06%, so SCHD currently pays the higher dividend yield.
Is XHE better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. XHE is less concentrated, with 21.3% of the fund in its ten largest positions against 41.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.