SCHD vs XHYE

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. XHYE offers more diversification with 179 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: XHYE

Side-by-Side Comparison

MetricSCHDXHYEWinner
Expense Ratio0.06%0.35%
AUM$103.7B$6M
Dividend Yield3.31%6.41%
Holdings104211
YTD Return+26.21%+3.65%
1Y Return+29.99%+10.84%
3Y Return (annualized)+15.73%+8.71%
5Y Return (annualized)+9.67%-
Volatility (annualized)13.6%7.2%
Max Drawdown-33.4%-8.9%
Fund FamilyCharles Schwab Asset ManagementBondBloxx
CategoryEquityFixed Income
InceptionOct 20, 2011Feb 15, 2022

SCHD vs XHYE Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and BondBloxx USD High Yield Bond Energy Sector ETF (XHYE) is a ETF from BondBloxx. Over the past year SCHD returned +29.99% while XHYE returned +10.84%. Year to date, SCHD is up 26.21% versus a gain of 3.65% for XHYE.

Over three years, SCHD compounded at +15.73% per year against +8.71% for XHYE. Across the full 4-year window we track, SCHD has the edge at +11.50% annualized vs +6.40%. 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 7.2% for XHYE. 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 -8.9% for XHYE. 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 0.78. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

SCHD charges 0.06% per year while XHYE 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 6.41% for XHYE.

Holdings Overlap

0.0%overlap

SCHD and XHYE share 0 holdings out of 279 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 XHYE?

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

Over the past year SCHD returned +29.99% vs +10.84% for XHYE, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), SCHD annualized +11.50% vs +6.40% for XHYE. Past performance does not guarantee future results.

Which is riskier, SCHD or XHYE?

SCHD has been the more volatile fund at 13.6% annualized versus 7.2% for XHYE. Worst drawdown: SCHD -33.4% vs XHYE -8.9%.

Should I hold both SCHD and XHYE?

SCHD and XHYE have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and XHYE?

SCHD and XHYE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 279 unique securities.

Which pays a higher dividend, SCHD or XHYE?

SCHD yields 3.31% while XHYE yields 6.41%, so XHYE currently pays the higher dividend yield.

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