SCHD vs XLSR
Schwab US Dividend Equity ETF vs State Street US Sector Rotation ETF
Which is better, SCHD or XLSR?
Large Cap Value against Large Cap Blend.
SCHD has a lower expense ratio. SCHD 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 86.4%.
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 | XLSR |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.70% |
| AUM | $112.1B | $1.0B |
| Dividend Yield | 3.00% | 0.46% |
| Holdings | 103 | 35 |
| YTD Return | +24.59%Best | +4.98% |
| 1Y Return | +28.14%Best | +12.16% |
| 3Y Return (annualized) | +15.58%Best | +15.30% |
| 5Y Return (annualized) | +9.90%Best | +8.86% |
| Volatility (annualized) | 16.5% | 16.2%Best |
| Max Drawdown | -33.4% | -32.9%Best |
| $10,000 over 5 years | $16,032Best | $15,288 |
| Top 10 Weight | 41.8%Best | 86.4% |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | Oct 20, 2011 | Apr 2, 2019 |
Volatility and max drawdown are measured over the window both funds cover: Apr 3, 2019 to Sep 10, 2026 (7.4 years).
SCHD vs XLSR 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 7.4 years both funds cover.
SCHD vs XLSR Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and State Street US Sector Rotation ETF (XLSR) is an ETF from State Street Investment Management. Over the past year SCHD returned +28.14% while XLSR returned +12.16%. Year to date, SCHD is up 24.59% versus a gain of 4.98% for XLSR.
Over three years, SCHD compounded at +15.58% per year against +15.30% for XLSR; over five years the annualized figures are +9.90% and +8.86% respectively. Across the full 7-year window we track, SCHD has the edge at +12.11% annualized vs +12.09%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 16.5% compared with 16.2% for XLSR. 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 -32.9% for XLSR. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 XLSR charges 0.70%. On a $10,000 position that is $6 vs $70 annually, a gap of $64 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 0.46% for XLSR.
Holdings Overlap
4.0% of SCHD's money is in holdings XLSR also owns. 0.1% of XLSR's money is in holdings SCHD also owns.
SCHD and XLSR share little of their money.
1 positions in common, counted across the 100 positions we hold weights for in SCHD and 25 in XLSR, against full books of 103 and 35.
What only one of them owns
Our book lists 22 positions for XLSR that do not appear in our book for SCHD (99.9% of the fund), and 97 for SCHD that do not appear in XLSR (96.0%).
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 XLSR | Difference |
|---|---|---|---|
| VZVerizon Communications, Inc. | 3.97% | 0.12% | 3.85% |
You are not choosing between two funds in isolation.
Whichever of SCHD and XLSR 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 XLSR?
SCHD has an expense ratio of 0.06% while XLSR charges 0.70%. SCHD is the cheaper option, by $64 a year on a $10,000 investment.
Which performed better, SCHD or XLSR?
Over the past year SCHD returned +28.14% vs +12.16% for XLSR, so SCHD leads on 1-year performance. Over the longest common window we track (7 years), SCHD annualized +12.11% vs +12.09% for XLSR. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or XLSR?
SCHD has been the more volatile fund at 16.5% annualized versus 16.2% for XLSR. Worst drawdown: SCHD -33.4% vs XLSR -32.9%.
Should I hold both SCHD and XLSR?
SCHD and XLSR have a monthly-return correlation of 0.80, 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 XLSR?
4.0% of SCHD's money is in holdings XLSR also owns. 0.1% of XLSR's is in holdings SCHD also owns. They hold 1 positions in common, counted across the 100 positions we hold weights for in SCHD and 25 in XLSR.
Which pays a higher dividend, SCHD or XLSR?
SCHD yields 3.00% while XLSR yields 0.46%, so SCHD currently pays the higher dividend yield.
Is XLSR better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 86.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.