SCHD vs XMHQ
Schwab US Dividend Equity ETF vs Invesco S&P MidCap Quality ETF
Which is better, SCHD or XMHQ?
Large Cap Value against Mid Cap Blend.
SCHD has a lower expense ratio. SCHD led over 1Y and 3Y, XMHQ over 5Y and the full window. XMHQ is less concentrated, with 31.8% of the fund in its ten largest positions against 41.8%.
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 | XMHQ |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.25% |
| AUM | $112.1B | $5.5B |
| Dividend Yield | 3.00% | 0.55% |
| Holdings | 103 | 82 |
| YTD Return | +24.23%Best | +10.91% |
| 1Y Return | +27.90%Best | +10.12% |
| 3Y Return (annualized) | +15.55%Best | +14.29% |
| 5Y Return (annualized) | +9.97% | +10.18%Best |
| Volatility (annualized) | 13.6%Best | 16.0% |
| Max Drawdown | -33.4%Best | -37.2% |
| $10,000 over 5 years | $16,083 | $16,237Best |
| Top 10 Weight | 41.8% | 31.8%Best |
| Fund Family | Charles Schwab Asset Management | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Mid Cap Blend |
| Inception | Oct 20, 2011 | Dec 1, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 17, 2026 (14.9 years).
SCHD vs XMHQ 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 XMHQ Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and Invesco S&P MidCap Quality ETF (XMHQ) is an ETF from Invesco (US). Over the past year SCHD returned +27.90% while XMHQ returned +10.12%. Year to date, SCHD is up 24.23% versus a gain of 10.91% for XMHQ.
Over three years, SCHD compounded at +15.55% per year against +14.29% for XMHQ; over five years the annualized figures are +9.97% and +10.18% respectively. Across the full 15-year window we track, XMHQ has the edge at +11.94% annualized vs +11.30%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XMHQ has been the more volatile fund, with annualized monthly volatility of 16.0% compared with 13.6% 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 -37.2% for XMHQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while XMHQ charges 0.25%. On a $10,000 position that is $6 vs $25 annually, a gap of $19 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 0.55% for XMHQ.
Holdings Overlap
1.2% of SCHD's money is in holdings XMHQ also owns. 5.8% of XMHQ's money is in holdings SCHD also owns.
XMHQ and SCHD share little of their money.
7 positions in common, counted across the 100 positions we hold weights for in SCHD and 81 in XMHQ, against full books of 103 and 82.
What only one of them owns
Our book lists 72 positions for XMHQ that do not appear in our book for SCHD (87.0% of the fund), and 92 for SCHD that do not appear in XMHQ (98.7%).
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 XMHQ | Difference |
|---|---|---|---|
| BAHBooz Allen Hamilton Holding Corp. | 0.22% | 1.30% | 1.08% |
| AFGAmerican Financial Group Inc/Oh | 0.24% | 1.05% | 0.81% |
| ORIOld Republic International Corp | 0.23% | 1.00% | 0.77% |
| ALVAllianz Ag | 0.20% | 0.97% | 0.77% |
| FHIFederated Investors Inc. | 0.11% | 0.68% | 0.57% |
| MSMMsc Industrial Direct Co Inc | 0.13% | 0.58% | 0.45% |
| LANCLancaster Colony Corp | 0.06% | 0.24% | 0.18% |
You are not choosing between two funds in isolation.
Whichever of SCHD and XMHQ 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 XMHQ?
SCHD has an expense ratio of 0.06% while XMHQ charges 0.25%. SCHD is the cheaper option, by $19 a year on a $10,000 investment.
Which performed better, SCHD or XMHQ?
Over the past year SCHD returned +27.90% vs +10.12% for XMHQ, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.30% vs +11.94% for XMHQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or XMHQ?
XMHQ has been the more volatile fund at 16.0% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs XMHQ -37.2%.
Should I hold both SCHD and XMHQ?
SCHD and XMHQ have a monthly-return correlation of 0.83, 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 XMHQ?
5.8% of XMHQ's money is in holdings SCHD also owns. 5.8% of XMHQ's is in holdings SCHD also owns. They hold 7 positions in common, counted across the 100 positions we hold weights for in SCHD and 81 in XMHQ.
Which pays a higher dividend, SCHD or XMHQ?
SCHD yields 3.00% while XMHQ yields 0.55%, so SCHD currently pays the higher dividend yield.
Is XMHQ better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y and 3Y, XMHQ over 5Y and the full window. XMHQ is less concentrated, with 31.8% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.