SCHD vs XLK
Schwab US Dividend Equity ETF vs State Street Technology Select Sector SPDR ETF
Which is better, SCHD or XLK?
Large Cap Value against Large Cap Growth.
SCHD has a lower expense ratio. XLK led over 1Y, 3Y, 5Y and the full window. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 61.3%.
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 | XLK |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.08% |
| AUM | $112.1B | $119.7B |
| Dividend Yield | 3.00% | 0.43% |
| Holdings | 103 | 77 |
| YTD Return | +24.59% | +28.67%Best |
| 1Y Return | +28.14% | +37.84%Best |
| 3Y Return (annualized) | +15.58% | +29.60%Best |
| 5Y Return (annualized) | +9.90% | +19.68%Best |
| Volatility (annualized) | 13.6%Best | 18.7% |
| Max Drawdown | -33.4%Best | -33.6% |
| $10,000 over 5 years | $16,032 | $24,553Best |
| Top 10 Weight | 41.8%Best | 61.3% |
| Fund Family | Charles Schwab Asset Management | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Growth |
| Inception | Oct 20, 2011 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 10, 2026 (14.9 years).
SCHD vs XLK 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 XLK Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and State Street Technology Select Sector SPDR ETF (XLK) is an ETF from SPDR State Street Global Advisors. Over the past year SCHD returned +28.14% while XLK returned +37.84%. Year to date, SCHD is up 24.59% versus a gain of 28.67% for XLK.
Over three years, SCHD compounded at +15.58% per year against +29.60% for XLK; over five years the annualized figures are +9.90% and +19.68% respectively. Across the full 15-year window we track, XLK has the edge at +20.11% annualized vs +11.34%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLK 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 -33.6% for XLK. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.60. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SCHD charges 0.06% per year while XLK 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 0.43% for XLK.
Holdings Overlap
8.7% of SCHD's money is in holdings XLK also owns. 3.6% of XLK's money is in holdings SCHD also owns.
SCHD and XLK share little of their money.
4 positions in common, counted across the 100 positions we hold weights for in SCHD and 74 in XLK, against full books of 103 and 77.
What only one of them owns
Measured across the 100 and 74 positions we hold weights for.
SCHD holds 94 positions XLK does not, 91.2% of the fund.
Largest: MRK 4.77%, AMGN 4.70%, ABT 4.69%, KO 4.17%, CVX 4.02%
You are not choosing between two funds in isolation.
Whichever of SCHD and XLK 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 XLK?
SCHD has an expense ratio of 0.06% while XLK charges 0.08%. SCHD is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, SCHD or XLK?
Over the past year SCHD returned +28.14% vs +37.84% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.34% vs +20.11% for XLK. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or XLK?
XLK has been the more volatile fund at 18.7% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs XLK -33.6%.
Should I hold both SCHD and XLK?
SCHD and XLK have a monthly-return correlation of 0.60, 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 XLK?
8.7% of SCHD's money is in holdings XLK also owns. 3.6% of XLK's is in holdings SCHD also owns. They hold 4 positions in common, counted across the 100 positions we hold weights for in SCHD and 74 in XLK.
Which pays a higher dividend, SCHD or XLK?
SCHD yields 3.00% while XLK yields 0.43%, so SCHD currently pays the higher dividend yield.
Is XLK better than SCHD?
SCHD has a lower expense ratio. XLK led over 1Y, 3Y, 5Y and the full window. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 61.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.