SCHD vs XLY
Schwab US Dividend Equity ETF vs State Street Consumer Discretionary Select Sector SPDR ETF
Which is better, SCHD or XLY?
Large Cap Value against Large Cap Growth.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y and 5Y, XLY over the full window. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 68.5%.
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 | XLY |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.08% |
| AUM | $112.1B | $22.9B |
| Dividend Yield | 3.00% | 0.77% |
| Holdings | 103 | 50 |
| YTD Return | +21.99%Best | -6.13% |
| 1Y Return | +25.92%Best | -6.43% |
| 3Y Return (annualized) | +15.66%Best | +11.84% |
| 5Y Return (annualized) | +9.48%Best | +4.56% |
| Volatility (annualized) | 13.7%Best | 18.1% |
| Max Drawdown | -33.4%Best | -39.7% |
| $10,000 over 5 years | $15,728Best | $12,498 |
| Top 10 Weight | 41.8%Best | 68.5% |
| Fund Family | Charles Schwab Asset Management | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Growth |
| Inception | Oct 20, 2011 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 23, 2026 (14.9 years).
SCHD vs XLY 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 XLY Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and State Street Consumer Discretionary Select Sector SPDR ETF (XLY) is an ETF from SPDR State Street Global Advisors. Over the past year SCHD returned +25.92% while XLY returned -6.43%. Year to date, SCHD is up 21.99% versus a loss of 6.13% for XLY.
Over three years, SCHD compounded at +15.66% per year against +11.84% for XLY; over five years the annualized figures are +9.48% and +4.56% respectively. Across the full 15-year window we track, XLY has the edge at +12.81% annualized vs +11.15%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLY has been the more volatile fund, with annualized monthly volatility of 18.1% 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 -39.7% for XLY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.69. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SCHD charges 0.06% per year while XLY 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 3.00% against 0.77% for XLY.
Holdings Overlap
6.2% of SCHD's money is in holdings XLY also owns. 7.8% of XLY's money is in holdings SCHD also owns.
XLY and SCHD share little of their money.
4 positions in common, counted across the 100 positions we hold weights for in SCHD and 48 in XLY, against full books of 103 and 50.
What only one of them owns
Measured across the 100 and 48 positions we hold weights for.
SCHD holds 95 positions XLY does not, 93.7% of the fund.
Largest: MRK 4.77%, AMGN 4.70%, ABT 4.69%, KO 4.17%, CVX 4.02%
You are not choosing between two funds in isolation.
Whichever of SCHD and XLY 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 XLY?
SCHD has an expense ratio of 0.06% while XLY charges 0.08%. SCHD is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, SCHD or XLY?
Over the past year SCHD returned +25.92% vs -6.43% for XLY, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.15% vs +12.81% for XLY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or XLY?
XLY has been the more volatile fund at 18.1% annualized versus 13.7% for SCHD. Worst drawdown: SCHD -33.4% vs XLY -39.7%.
Should I hold both SCHD and XLY?
SCHD and XLY have a monthly-return correlation of 0.69, 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 XLY?
7.8% of XLY's money is in holdings SCHD also owns. 7.8% of XLY's is in holdings SCHD also owns. They hold 4 positions in common, counted across the 100 positions we hold weights for in SCHD and 48 in XLY.
Which pays a higher dividend, SCHD or XLY?
SCHD yields 3.00% while XLY yields 0.77%, so SCHD currently pays the higher dividend yield.
Is XLY better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y and 5Y, XLY over the full window. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 68.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.