SCHD vs XLI
Schwab US Dividend Equity ETF vs State Street Industrial Select Sector SPDR ETF
Which is better, SCHD or XLI?
Each has led over a different period.
SCHD has a lower expense ratio. SCHD led over 1Y and 3Y, XLI over 5Y and the full window. XLI is less concentrated, with 39.6% of the fund in its ten largest positions against 41.8%.
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 | XLI |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.08% |
| AUM | $119.9B | $29.5B |
| Dividend Yield | 2.96% | 1.98% |
| Holdings | 204 | 172 |
| YTD Return | +32.38%Best | +7.66% |
| 1Y Return | +38.54%Best | +10.67% |
| 3Y Return (annualized) | +20.13%Best | +19.73% |
| 5Y Return (annualized) | +10.28% | +11.30%Best |
| Volatility (annualized) | 13.8%Best | 16.9% |
| Max Drawdown | -33.4%Best | -42.8% |
| $10,000 over 5 years | $16,311 | $17,080Best |
| Top 10 Weight | 41.8% | 39.6%Best |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management |
| 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 Nov 10, 2026 (15.1 years).
SCHD vs XLI 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 15.1 years both funds cover.
SCHD vs XLI Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and State Street Industrial Select Sector SPDR ETF (XLI) is an ETF from State Street Investment Management. Over the past year SCHD returned +38.54% while XLI returned +10.67%. Year to date, SCHD is up 32.38% versus a gain of 7.66% for XLI.
Over three years, SCHD compounded at +20.13% per year against +19.73% for XLI; over five years the annualized figures are +10.28% and +11.30% respectively. Across the full 15-year window we track, XLI has the edge at +12.29% annualized vs +11.65%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLI has been the more volatile fund, with annualized monthly volatility of 16.9% compared with 13.8% 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 -42.8% for XLI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.84. 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 2.96% against 1.98% for XLI.
Holdings Overlap
10.5% of SCHD's money is in holdings XLI also owns. 7.4% of XLI's money is in holdings SCHD also owns.
SCHD and XLI share little of their money.
7 positions in common, counted across the 98 positions we hold weights for in SCHD and 83 in XLI, against full books of 204 and 172.
What only one of them owns
Our book lists 76 positions for XLI that do not appear in our book for SCHD (92.3% of the fund), and 90 for SCHD that do not appear in XLI (89.2%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in XLI | Difference |
|---|---|---|---|
| ADPAutomatic Data Processing, Inc. | 2.78% | 1.89% | 0.89% |
| LMTLockheed Martin | 2.65% | 1.90% | 0.75% |
| UPSUnited Parcel Service Inc | 1.79% | 1.29% | 0.50% |
| FASTFastenal Co | 1.49% | 1.08% | 0.41% |
| PAYXPaychex, Inc. | 0.87% | 0.59% | 0.28% |
| SNASnap-On Inc. | 0.47% | 0.35% | 0.12% |
| BRBroadridge Financial Solutions, Inc. | 0.48% | 0.33% | 0.15% |
You are not choosing between two funds in isolation.
Whichever of SCHD and XLI you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $2 a year on a $10,000 investment.
Which performed better, SCHD or XLI?
Over the past year SCHD returned +38.54% vs +10.67% for XLI, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.65% vs +12.29% for XLI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or XLI?
XLI has been the more volatile fund at 16.9% annualized versus 13.8% for SCHD. Worst drawdown: SCHD -33.4% vs XLI -42.8%.
Should I hold both SCHD and XLI?
SCHD and XLI have a monthly-return correlation of 0.84, 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 XLI?
10.5% of SCHD's money is in holdings XLI also owns. 7.4% of XLI's is in holdings SCHD also owns. They hold 7 positions in common, counted across the 98 positions we hold weights for in SCHD and 83 in XLI.
Which pays a higher dividend, SCHD or XLI?
SCHD yields 2.96% while XLI yields 1.98%, so SCHD currently pays the higher dividend yield.
Is XLI better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y and 3Y, XLI over 5Y and the full window. XLI is less concentrated, with 39.6% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.