SCHD vs XHS
Schwab US Dividend Equity ETF vs State Street SPDR S&P Health Care Services ETF
Quick Verdict
SCHD has a lower expense ratio. XHS delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | XHS | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.35% | |
| AUM | $103.7B | $207M | |
| Dividend Yield | 3.31% | 0.20% | |
| Holdings | 104 | 59 | |
| YTD Return | +24.26% | +26.22% | |
| 1Y Return | +31.38% | +52.79% | |
| 3Y Return (annualized) | +15.08% | +13.64% | |
| 5Y Return (annualized) | +9.72% | +4.42% | |
| Volatility (annualized) | 13.6% | 19.5% | |
| Max Drawdown | -33.4% | -39.4% | |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Sep 28, 2011 |
SCHD vs XHS Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and State Street SPDR S&P Health Care Services ETF (XHS) is a ETF from State Street Investment Management. Over the past year SCHD returned +31.38% while XHS returned +52.79%. Year to date, SCHD is up 24.26% versus a gain of 26.22% for XHS.
Over three years, SCHD compounded at +15.08% per year against +13.64% for XHS; over five years the annualized figures are +9.72% and +4.42% respectively. Across the full 15-year window we track, XHS has the edge at +12.21% annualized vs +11.39%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XHS has been the more volatile fund, with annualized monthly volatility of 19.5% 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 -39.4% for XHS. 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while XHS 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 0.20% for XHS.
Holdings Overlap
SCHD and XHS share 1 holdings out of 160 unique holdings combined, representing a 1.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in XHS | Difference |
|---|---|---|---|
| UNH | 4.54% | 1.62% | 2.92% |
Frequently Asked Questions
Which is cheaper, SCHD or XHS?
SCHD has an expense ratio of 0.06% while XHS 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 XHS?
Over the past year SCHD returned +31.38% vs +52.79% for XHS, so XHS leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs +12.21% for XHS. Past performance does not guarantee future results.
Which is riskier, SCHD or XHS?
XHS has been the more volatile fund at 19.5% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs XHS -39.4%.
Should I hold both SCHD and XHS?
SCHD and XHS have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and XHS?
SCHD and XHS share 1 common holdings with a 1.6% weight overlap. Combined, they hold 160 unique securities.
Which pays a higher dividend, SCHD or XHS?
SCHD yields 3.31% while XHS yields 0.20%, so SCHD currently pays the higher dividend yield.
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