SCHD vs XLVI
Schwab US Dividend Equity ETF vs State Street Health Care Select Sector SPDR Premium Income ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | XLVI | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.35% | |
| AUM | $103.7B | $19M | |
| Dividend Yield | 3.31% | 10.53% | |
| Holdings | 104 | 8 | |
| YTD Return | +26.21% | +8.71% | |
| 1Y Return | +29.99% | +23.28% | |
| 3Y Return (annualized) | +15.73% | - | |
| 5Y Return (annualized) | +9.67% | - | |
| Volatility (annualized) | 13.6% | 9.9% | |
| Max Drawdown | -33.4% | -8.1% | |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Jul 29, 2025 |
SCHD vs XLVI Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and State Street Health Care Select Sector SPDR Premium Income ETF (XLVI) is a ETF from State Street Investment Management. Over the past year SCHD returned +29.99% while XLVI returned +23.28%. Year to date, SCHD is up 26.21% versus a gain of 8.71% for XLVI.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 9.9% for XLVI. 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 -8.1% for XLVI. 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 0.21. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while XLVI 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 10.53% for XLVI.
Holdings Overlap
SCHD and XLVI 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 XLVI?
SCHD has an expense ratio of 0.06% while XLVI 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 XLVI?
Over the past year SCHD returned +29.99% vs +23.28% for XLVI, so SCHD leads on 1-year performance. Over the longest common window we track (1 years), SCHD annualized +11.50% vs +22.09% for XLVI. Past performance does not guarantee future results.
Which is riskier, SCHD or XLVI?
SCHD has been the more volatile fund at 13.6% annualized versus 9.9% for XLVI. Worst drawdown: SCHD -33.4% vs XLVI -8.1%.
Should I hold both SCHD and XLVI?
SCHD and XLVI have a monthly-return correlation of 0.21, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and XLVI?
SCHD and XLVI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 101 unique securities.
Which pays a higher dividend, SCHD or XLVI?
SCHD yields 3.31% while XLVI yields 10.53%, so XLVI currently pays the higher dividend yield.
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