SCHD vs XLRE
Schwab US Dividend Equity ETF vs State Street Real Estate Select Sector SPDR 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 | XLRE | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.08% | |
| AUM | $108.7B | $8.7B | |
| Dividend Yield | 3.13% | 3.12% | |
| Holdings | 104 | 34 | |
| YTD Return | +28.70% | +13.38% | |
| 1Y Return | +32.27% | +11.89% | |
| 3Y Return (annualized) | +17.27% | +11.55% | |
| 5Y Return (annualized) | +10.23% | +2.62% | |
| Volatility (annualized) | 13.7% | 16.9% | |
| Max Drawdown | -33.4% | -39.3% | |
| Fund Family | Charles Schwab Asset Management | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Oct 7, 2015 |
SCHD vs XLRE Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and State Street Real Estate Select Sector SPDR ETF (XLRE) is a ETF from SPDR State Street Global Advisors. Over the past year SCHD returned +32.27% while XLRE returned +11.89%. Year to date, SCHD is up 28.70% versus a gain of 13.38% for XLRE.
Over three years, SCHD compounded at +17.27% per year against +11.55% for XLRE; over five years the annualized figures are +10.23% and +2.62% respectively. Across the full 11-year window we track, SCHD has the edge at +11.63% annualized vs +5.52%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLRE has been the more volatile fund, with annualized monthly volatility of 16.9% 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 -39.3% for XLRE. 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while XLRE 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 3.12% for XLRE.
Holdings Overlap
SCHD and XLRE share 0 holdings out of 132 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or XLRE?
SCHD has an expense ratio of 0.06% while XLRE 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 XLRE?
Over the past year SCHD returned +32.27% vs +11.89% for XLRE, so SCHD leads on 1-year performance. Over the longest common window we track (11 years), SCHD annualized +11.63% vs +5.52% for XLRE. Past performance does not guarantee future results.
Which is riskier, SCHD or XLRE?
XLRE has been the more volatile fund at 16.9% annualized versus 13.7% for SCHD. Worst drawdown: SCHD -33.4% vs XLRE -39.3%.
Should I hold both SCHD and XLRE?
SCHD and XLRE have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and XLRE?
SCHD and XLRE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 132 unique securities.
Which pays a higher dividend, SCHD or XLRE?
SCHD yields 3.13% while XLRE yields 3.12%, so SCHD currently pays the higher dividend yield.
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