SCHD vs XLSI

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricSCHDXLSIWinner
Expense Ratio0.06%0.35%
AUM$103.7B$6M
Dividend Yield3.31%9.72%
Holdings1048
YTD Return+25.62%+6.01%
1Y Return+32.62%+3.52%
3Y Return (annualized)+15.58%-
5Y Return (annualized)+9.63%-
Volatility (annualized)13.6%10.5%
Max Drawdown-33.4%-7.9%
Fund FamilyCharles Schwab Asset ManagementState Street Investment Management
CategoryEquityEquity
InceptionOct 20, 2011Jul 29, 2025

SCHD vs XLSI Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and State Street Consumer Staples Select Sector SPDR Premium Income ETF (XLSI) is a ETF from State Street Investment Management. Over the past year SCHD returned +32.62% while XLSI returned +3.52%. Year to date, SCHD is up 25.62% versus a gain of 6.01% for XLSI.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 10.5% for XLSI. 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 -7.9% for XLSI. 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 0.80. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

SCHD charges 0.06% per year while XLSI charges 0.35%. On a $10,000 position that is $6 vs $35 annually, a gap of $29 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 9.72% for XLSI.

Holdings Overlap

0.0%overlap

SCHD and XLSI share 0 holdings out of 101 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 XLSI?

SCHD has an expense ratio of 0.06% while XLSI charges 0.35%. SCHD is the cheaper option. On a $10,000 investment, that is $29 per year of difference.

Which performed better, SCHD or XLSI?

Over the past year SCHD returned +32.62% vs +3.52% for XLSI, so SCHD leads on 1-year performance. Over the longest common window we track (1 years), SCHD annualized +11.47% vs +5.26% for XLSI. Past performance does not guarantee future results.

Which is riskier, SCHD or XLSI?

SCHD has been the more volatile fund at 13.6% annualized versus 10.5% for XLSI. Worst drawdown: SCHD -33.4% vs XLSI -7.9%.

Should I hold both SCHD and XLSI?

SCHD and XLSI have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and XLSI?

SCHD and XLSI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 101 unique securities.

Which pays a higher dividend, SCHD or XLSI?

SCHD yields 3.31% while XLSI yields 9.72%, so XLSI currently pays the higher dividend yield.

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