SCHD vs XLYI
Schwab US Dividend Equity ETF vs State Street Consumer Discretionary 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 | XLYI | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.35% | |
| AUM | $103.7B | $2M | |
| Dividend Yield | 3.31% | 13.38% | |
| Holdings | 104 | 8 | |
| YTD Return | +25.58% | +1.51% | |
| 1Y Return | +31.06% | +4.68% | |
| 3Y Return (annualized) | +15.55% | - | |
| 5Y Return (annualized) | +9.61% | - | |
| Volatility (annualized) | 13.6% | 10.9% | |
| Max Drawdown | -33.4% | -12.3% | |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Jul 29, 2025 |
SCHD vs XLYI Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and State Street Consumer Discretionary Select Sector SPDR Premium Income ETF (XLYI) is a ETF from State Street Investment Management. Over the past year SCHD returned +31.06% while XLYI returned +4.68%. Year to date, SCHD is up 25.58% versus a gain of 1.51% for XLYI.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 10.9% for XLYI. 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 -12.3% for XLYI. 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while XLYI 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 13.38% for XLYI.
Holdings Overlap
SCHD and XLYI share 0 holdings out of 102 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 XLYI?
SCHD has an expense ratio of 0.06% while XLYI 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 XLYI?
Over the past year SCHD returned +31.06% vs +4.68% for XLYI, so SCHD leads on 1-year performance. Over the longest common window we track (1 years), SCHD annualized +11.46% vs +6.55% for XLYI. Past performance does not guarantee future results.
Which is riskier, SCHD or XLYI?
SCHD has been the more volatile fund at 13.6% annualized versus 10.9% for XLYI. Worst drawdown: SCHD -33.4% vs XLYI -12.3%.
Should I hold both SCHD and XLYI?
SCHD and XLYI have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and XLYI?
SCHD and XLYI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 102 unique securities.
Which pays a higher dividend, SCHD or XLYI?
SCHD yields 3.31% while XLYI yields 13.38%, so XLYI currently pays the higher dividend yield.
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