SCHD vs XLI
Schwab US Dividend Equity ETF vs State Street Industrial Select Sector SPDR ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | XLI | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.08% | |
| AUM | $103.7B | $33.4B | |
| Dividend Yield | 3.31% | 1.11% | |
| Holdings | 104 | 82 | |
| YTD Return | +25.33% | +17.47% | |
| 1Y Return | +32.31% | +24.37% | |
| 3Y Return (annualized) | +15.40% | +20.98% | |
| 5Y Return (annualized) | +9.70% | +13.83% | |
| Volatility (annualized) | 13.6% | 18.7% | |
| Max Drawdown | -33.4% | -63.3% | |
| Fund Family | Charles Schwab Asset Management | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Dec 16, 1998 |
SCHD vs XLI Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and State Street Industrial Select Sector SPDR ETF (XLI) is a ETF from SPDR State Street Global Advisors. Over the past year SCHD returned +32.31% while XLI returned +24.37%. Year to date, SCHD is up 25.33% versus a gain of 17.47% for XLI.
Over three years, SCHD compounded at +15.40% per year against +20.98% for XLI; over five years the annualized figures are +9.70% and +13.83% respectively. Across the full 15-year window we track, SCHD has the edge at +11.45% annualized vs +8.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLI has been the more volatile fund, with annualized monthly volatility of 18.7% 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 -63.3% for XLI. 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while XLI 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 3.31% against 1.11% for XLI.
Holdings Overlap
SCHD and XLI share 7 holdings out of 175 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 XLI?
SCHD has an expense ratio of 0.06% while XLI charges 0.08%. SCHD is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, SCHD or XLI?
Over the past year SCHD returned +32.31% vs +24.37% for XLI, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.45% vs +8.10% for XLI. Past performance does not guarantee future results.
Which is riskier, SCHD or XLI?
XLI has been the more volatile fund at 18.7% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs XLI -63.3%.
Should I hold both SCHD and XLI?
SCHD and XLI have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and XLI?
SCHD and XLI share 7 common holdings with a 7.2% weight overlap. Combined, they hold 175 unique securities.
Which pays a higher dividend, SCHD or XLI?
SCHD yields 3.31% while XLI yields 1.11%, so SCHD currently pays the higher dividend yield.
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