SCHD vs XLE
Schwab US Dividend Equity ETF vs State Street Energy Select Sector SPDR ETF
Which is better, SCHD or XLE?
Each has led over a different period.
SCHD has a lower expense ratio. SCHD led over 3Y and the full window, XLE over 1Y and 5Y. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 73.5%.
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 | XLE |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.08% |
| AUM | $112.1B | $42.4B |
| Dividend Yield | 3.00% | 2.55% |
| Holdings | 103 | 24 |
| YTD Return | +23.68% | +37.20%Best |
| 1Y Return | +28.36% | +44.10%Best |
| 3Y Return (annualized) | +16.20%Best | +14.34% |
| 5Y Return (annualized) | +10.07% | +24.58%Best |
| Volatility (annualized) | 13.7%Best | 26.6% |
| Max Drawdown | -33.4%Best | -76.7% |
| $10,000 over 5 years | $16,156 | $30,008Best |
| Top 10 Weight | 41.8%Best | 73.5% |
| Fund Family | Charles Schwab Asset Management | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Oct 20, 2011 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 22, 2026 (14.9 years).
SCHD vs XLE 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 XLE Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and State Street Energy Select Sector SPDR ETF (XLE) is an ETF from SPDR State Street Global Advisors. Over the past year SCHD returned +28.36% while XLE returned +44.10%. Year to date, SCHD is up 23.68% versus a gain of 37.20% for XLE.
Over three years, SCHD compounded at +16.20% per year against +14.34% for XLE; over five years the annualized figures are +10.07% and +24.58% respectively. Across the full 15-year window we track, SCHD has the edge at +11.26% annualized vs +5.58%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLE has been the more volatile fund, with annualized monthly volatility of 26.6% compared with 13.7% 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 -76.7% for XLE. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while XLE charges 0.08%. On a $10,000 position that is $6 vs $8 annually, a gap of $2 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 2.55% for XLE.
Holdings Overlap
15.2% of SCHD's money is in holdings XLE also owns. 37.7% of XLE's money is in holdings SCHD also owns.
The two portfolios partly overlap.
7 positions in common, counted across the 100 positions we hold weights for in SCHD and 22 in XLE, against full books of 103 and 24.
What only one of them owns
Measured across the 100 and 22 positions we hold weights for.
SCHD holds 92 positions XLE does not, 84.7% of the fund.
Largest: MRK 4.77%, AMGN 4.70%, ABT 4.69%, KO 4.17%, VZ 3.97%
Top Shared Holdings
37.7% of XLE is already inside SCHD.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, SCHD or XLE?
SCHD has an expense ratio of 0.06% while XLE charges 0.08%. SCHD is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, SCHD or XLE?
Over the past year SCHD returned +28.36% vs +44.10% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.26% vs +5.58% for XLE. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or XLE?
XLE has been the more volatile fund at 26.6% annualized versus 13.7% for SCHD. Worst drawdown: SCHD -33.4% vs XLE -76.7%.
Should I hold both SCHD and XLE?
SCHD and XLE have a monthly-return correlation of 0.71, 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 XLE?
37.7% of XLE's money is in holdings SCHD also owns. 37.7% of XLE's is in holdings SCHD also owns. They hold 7 positions in common, counted across the 100 positions we hold weights for in SCHD and 22 in XLE.
Which pays a higher dividend, SCHD or XLE?
SCHD yields 3.00% while XLE yields 2.55%, so SCHD currently pays the higher dividend yield.
Is XLE better than SCHD?
SCHD has a lower expense ratio. SCHD led over 3Y and the full window, XLE over 1Y and 5Y. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 73.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.