SCHD vs XLG
Schwab US Dividend Equity ETF vs Invesco S&P 500 Top 50 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 | XLG | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.20% | |
| AUM | $108.7B | $11.0B | |
| Dividend Yield | 3.13% | 0.66% | |
| Holdings | 104 | 53 | |
| YTD Return | +29.07% | +5.04% | |
| 1Y Return | +31.45% | +13.75% | |
| 3Y Return (annualized) | +17.18% | +21.96% | |
| 5Y Return (annualized) | +10.30% | +13.42% | |
| Volatility (annualized) | 13.7% | 15.0% | |
| Max Drawdown | -33.4% | -53.8% | |
| Fund Family | Charles Schwab Asset Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | May 4, 2005 |
SCHD vs XLG Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Invesco S&P 500 Top 50 ETF (XLG) is a ETF from Invesco (US). Over the past year SCHD returned +31.45% while XLG returned +13.75%. Year to date, SCHD is up 29.07% versus a gain of 5.04% for XLG.
Over three years, SCHD compounded at +17.18% per year against +21.96% for XLG; over five years the annualized figures are +10.30% and +13.42% respectively. Across the full 15-year window we track, SCHD has the edge at +11.64% annualized vs +9.70%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLG has been the more volatile fund, with annualized monthly volatility of 15.0% 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 -53.8% for XLG. 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while XLG charges 0.20%. On a $10,000 position that is $6 vs $20 annually, a gap of $14 per year that compounds over a long holding period. On income, SCHD currently yields 3.13% against 0.66% for XLG.
Holdings Overlap
SCHD and XLG share 10 holdings out of 142 unique holdings combined, representing a 7.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or XLG?
SCHD has an expense ratio of 0.06% while XLG charges 0.20%. SCHD is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, SCHD or XLG?
Over the past year SCHD returned +31.45% vs +13.75% for XLG, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.64% vs +9.70% for XLG. Past performance does not guarantee future results.
Which is riskier, SCHD or XLG?
XLG has been the more volatile fund at 15.0% annualized versus 13.7% for SCHD. Worst drawdown: SCHD -33.4% vs XLG -53.8%.
Should I hold both SCHD and XLG?
SCHD and XLG have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and XLG?
SCHD and XLG share 10 common holdings with a 7.2% weight overlap. Combined, they hold 142 unique securities.
Which pays a higher dividend, SCHD or XLG?
SCHD yields 3.13% while XLG yields 0.66%, so SCHD currently pays the higher dividend yield.
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