SCHD vs XOP
Schwab US Dividend Equity ETF vs State Street SPDR S&P Oil & Gas Exploration & Production ETF
Quick Verdict
SCHD has a lower expense ratio. XOP delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | SCHD | XOP | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.35% | |
| AUM | $108.7B | $3.7B | |
| Dividend Yield | 3.13% | 1.83% | |
| Holdings | 104 | 54 | |
| YTD Return | +26.54% | +41.21% | |
| 1Y Return | +30.90% | +47.57% | |
| 3Y Return (annualized) | +16.29% | +9.91% | |
| 5Y Return (annualized) | +9.65% | +21.05% | |
| Volatility (annualized) | 13.6% | 37.1% | |
| Max Drawdown | -33.4% | -91.0% | |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Jun 19, 2006 |
SCHD vs XOP Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and State Street SPDR S&P Oil & Gas Exploration & Production ETF (XOP) is a ETF from State Street Investment Management. Over the past year SCHD returned +30.90% while XOP returned +47.57%. Year to date, SCHD is up 26.54% versus a gain of 41.21% for XOP.
Over three years, SCHD compounded at +16.29% per year against +9.91% for XOP; over five years the annualized figures are +9.65% and +21.05% respectively. Across the full 15-year window we track, SCHD has the edge at +11.51% annualized vs +1.96%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XOP has been the more volatile fund, with annualized monthly volatility of 37.1% 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 -91.0% for XOP. 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while XOP 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 3.13% against 1.83% for XOP.
Holdings Overlap
SCHD and XOP share 7 holdings out of 145 unique holdings combined, representing a 8.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or XOP?
SCHD has an expense ratio of 0.06% while XOP 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 XOP?
Over the past year SCHD returned +30.90% vs +47.57% for XOP, so XOP leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.51% vs +1.96% for XOP. Past performance does not guarantee future results.
Which is riskier, SCHD or XOP?
XOP has been the more volatile fund at 37.1% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs XOP -91.0%.
Should I hold both SCHD and XOP?
SCHD and XOP have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and XOP?
SCHD and XOP share 7 common holdings with a 8.6% weight overlap. Combined, they hold 145 unique securities.
Which pays a higher dividend, SCHD or XOP?
SCHD yields 3.13% while XOP yields 1.83%, so SCHD currently pays the higher dividend yield.
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