SCHD vs XMAG
Schwab US Dividend Equity ETF vs Defiance Large Cap ex-Mag 7 ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. XMAG offers more diversification with 492 holdings.
Side-by-Side Comparison
| Metric | SCHD | XMAG | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.35% | |
| AUM | $103.7B | $166M | |
| Dividend Yield | 3.31% | 0.23% | |
| Holdings | 104 | 495 | |
| YTD Return | +25.58% | +16.82% | |
| 1Y Return | +31.06% | +23.85% | |
| 3Y Return (annualized) | +15.55% | - | |
| 5Y Return (annualized) | +9.61% | - | |
| Volatility (annualized) | 13.6% | 12.1% | |
| Max Drawdown | -33.4% | -16.2% | |
| Fund Family | Charles Schwab Asset Management | Defiance ETFs, LLC | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Oct 21, 2024 |
SCHD vs XMAG Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Defiance Large Cap ex-Mag 7 ETF (XMAG) is a ETF from Defiance ETFs, LLC. Over the past year SCHD returned +31.06% while XMAG returned +23.85%. Year to date, SCHD is up 25.58% versus a gain of 16.82% for XMAG.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 12.1% for XMAG. 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 -16.2% for XMAG. 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while XMAG 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 0.23% for XMAG.
Holdings Overlap
SCHD and XMAG share 44 holdings out of 548 unique holdings combined, representing a 12.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or XMAG?
SCHD has an expense ratio of 0.06% while XMAG 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 XMAG?
Over the past year SCHD returned +31.06% vs +23.85% for XMAG, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), SCHD annualized +11.46% vs +17.25% for XMAG. Past performance does not guarantee future results.
Which is riskier, SCHD or XMAG?
SCHD has been the more volatile fund at 13.6% annualized versus 12.1% for XMAG. Worst drawdown: SCHD -33.4% vs XMAG -16.2%.
Should I hold both SCHD and XMAG?
SCHD and XMAG have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and XMAG?
SCHD and XMAG share 44 common holdings with a 12.1% weight overlap. Combined, they hold 548 unique securities.
Which pays a higher dividend, SCHD or XMAG?
SCHD yields 3.31% while XMAG yields 0.23%, so SCHD currently pays the higher dividend yield.
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