SCHD vs XRT
Schwab US Dividend Equity ETF vs State Street SPDR S&P Retail 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 | XRT | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.35% | |
| AUM | $103.7B | $524M | |
| Dividend Yield | 3.31% | 0.77% | |
| Holdings | 104 | 77 | |
| YTD Return | +24.26% | +6.24% | |
| 1Y Return | +31.38% | +12.72% | |
| 3Y Return (annualized) | +15.08% | +12.19% | |
| 5Y Return (annualized) | +9.72% | +0.54% | |
| Volatility (annualized) | 13.6% | 24.6% | |
| Max Drawdown | -33.4% | -66.2% | |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Jun 19, 2006 |
SCHD vs XRT Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and State Street SPDR S&P Retail ETF (XRT) is a ETF from State Street Investment Management. Over the past year SCHD returned +31.38% while XRT returned +12.72%. Year to date, SCHD is up 24.26% versus a gain of 6.24% for XRT.
Over three years, SCHD compounded at +15.08% per year against +12.19% for XRT; over five years the annualized figures are +9.72% and +0.54% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +8.61%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XRT has been the more volatile fund, with annualized monthly volatility of 24.6% 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 -66.2% for XRT. 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while XRT 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 0.77% for XRT.
Holdings Overlap
SCHD and XRT share 1 holdings out of 108 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in XRT | Difference |
|---|---|---|---|
| BBY | 0.43% | 1.40% | 0.97% |
Frequently Asked Questions
Which is cheaper, SCHD or XRT?
SCHD has an expense ratio of 0.06% while XRT 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 XRT?
Over the past year SCHD returned +31.38% vs +12.72% for XRT, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs +8.61% for XRT. Past performance does not guarantee future results.
Which is riskier, SCHD or XRT?
XRT has been the more volatile fund at 24.6% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs XRT -66.2%.
Should I hold both SCHD and XRT?
SCHD and XRT have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and XRT?
SCHD and XRT share 1 common holdings with a 0.4% weight overlap. Combined, they hold 108 unique securities.
Which pays a higher dividend, SCHD or XRT?
SCHD yields 3.31% while XRT yields 0.77%, so SCHD currently pays the higher dividend yield.
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