SCHD vs XLP
Schwab US Dividend Equity ETF vs State Street Consumer Staples Select Sector SPDR ETF
Which is better, SCHD or XLP?
SCHD has been ahead.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. SCHD is less concentrated, with 41.5% of the fund in its ten largest positions against 62.1%.
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 | XLP |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.08% |
| AUM | $112.2B | $14.6B |
| Dividend Yield | 3.13% | 2.58% |
| Holdings | 103 | 38 |
| YTD Return | +27.56%Best | +10.24% |
| 1Y Return | +30.29%Best | +7.80% |
| 3Y Return (annualized) | +16.37%Best | +8.67% |
| 5Y Return (annualized) | +10.23%Best | +6.05% |
| Volatility (annualized) | 13.6% | 12.2%Best |
| Max Drawdown | -33.4% | -24.9%Best |
| $10,000 over 5 years | $16,274Best | $13,414 |
| Top 10 Weight | 41.5%Best | 62.1% |
| 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 4, 2026 (14.9 years).
SCHD vs XLP 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 XLP Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and State Street Consumer Staples Select Sector SPDR ETF (XLP) is an ETF from SPDR State Street Global Advisors. Over the past year SCHD returned +30.29% while XLP returned +7.80%. Year to date, SCHD is up 27.56% versus a gain of 10.24% for XLP.
Over three years, SCHD compounded at +16.37% per year against +8.67% for XLP; over five years the annualized figures are +10.23% and +6.05% respectively. Across the full 15-year window we track, SCHD has the edge at +11.53% annualized vs +8.03%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 12.2% for XLP. 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 -24.9% for XLP. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while XLP 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 3.13% against 2.58% for XLP.
Holdings Overlap
19.4% of SCHD's money is in holdings XLP also owns. 34.9% of XLP's money is in holdings SCHD also owns.
The two portfolios partly overlap.
9 positions in common, counted across the 100 positions we hold weights for in SCHD and 35 in XLP, against full books of 103 and 38.
What only one of them owns
Measured across the 100 and 35 positions we hold weights for.
SCHD holds 90 positions XLP does not, 80.5% of the fund.
Largest: ABT 4.70%, AMGN 4.62%, HD 4.32%, MRK 4.26%, UNH 4.11%
Top Shared Holdings
| Stock | Weight in SCHD | Weight in XLP | Difference |
|---|---|---|---|
| KOCoca-Cola Co. (The) | 4.20% | 7.18% | 2.98% |
| PGProcter & Gamble Company | 3.96% | 7.23% | 3.27% |
| PEPPepsico Inc. | 3.71% | 4.35% | 0.64% |
| MOAltria Group Inc | 2.86% | 4.22% | 1.36% |
| TGTTarget Corp-1477 | 1.70% | 4.32% | 2.62% |
| ADMArcher-Daniels-Midland Co. | 0.92% | 2.35% | 1.43% |
| KMBKimberly-Clark Corp. | 0.91% | 2.31% | 1.40% |
| HSYHershey Co. | 0.68% | 1.72% | 1.04% |
| GISGeneral Mills In | 0.49% | 1.25% | 0.76% |
34.9% of XLP 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 XLP?
SCHD has an expense ratio of 0.06% while XLP charges 0.08%. SCHD is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, SCHD or XLP?
Over the past year SCHD returned +30.29% vs +7.80% for XLP, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.53% vs +8.03% for XLP. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or XLP?
SCHD has been the more volatile fund at 13.6% annualized versus 12.2% for XLP. Worst drawdown: SCHD -33.4% vs XLP -24.9%.
Should I hold both SCHD and XLP?
SCHD and XLP have a monthly-return correlation of 0.77, 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 XLP?
34.9% of XLP's money is in holdings SCHD also owns. 34.9% of XLP's is in holdings SCHD also owns. They hold 9 positions in common, counted across the 100 positions we hold weights for in SCHD and 35 in XLP.
Which pays a higher dividend, SCHD or XLP?
SCHD yields 3.13% while XLP yields 2.58%, so SCHD currently pays the higher dividend yield.
Is XLP better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. SCHD is less concentrated, with 41.5% of the fund in its ten largest positions against 62.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.