SCHD vs XSD
Schwab US Dividend Equity ETF vs State Street SPDR S&P Semiconductor ETF
Quick Verdict
SCHD has a lower expense ratio. XSD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | SCHD | XSD | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.35% | |
| AUM | $108.7B | $2.9B | |
| Dividend Yield | 3.13% | 0.16% | |
| Holdings | 104 | 49 | |
| YTD Return | +26.54% | +62.45% | |
| 1Y Return | +30.90% | +91.45% | |
| 3Y Return (annualized) | +16.29% | +38.13% | |
| 5Y Return (annualized) | +9.65% | +23.31% | |
| Volatility (annualized) | 13.6% | 29.9% | |
| Max Drawdown | -33.4% | -64.9% | |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Jan 31, 2006 |
SCHD vs XSD Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and State Street SPDR S&P Semiconductor ETF (XSD) is a ETF from State Street Investment Management. Over the past year SCHD returned +30.90% while XSD returned +91.45%. Year to date, SCHD is up 26.54% versus a gain of 62.45% for XSD.
Over three years, SCHD compounded at +16.29% per year against +38.13% for XSD; over five years the annualized figures are +9.65% and +23.31% respectively. Across the full 15-year window we track, XSD has the edge at +15.91% annualized vs +11.51%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XSD has been the more volatile fund, with annualized monthly volatility of 29.9% 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 -64.9% for XSD. 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while XSD 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 0.16% for XSD.
Holdings Overlap
SCHD and XSD share 3 holdings out of 144 unique holdings combined, representing a 5.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or XSD?
SCHD has an expense ratio of 0.06% while XSD 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 XSD?
Over the past year SCHD returned +30.90% vs +91.45% for XSD, so XSD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.51% vs +15.91% for XSD. Past performance does not guarantee future results.
Which is riskier, SCHD or XSD?
XSD has been the more volatile fund at 29.9% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs XSD -64.9%.
Should I hold both SCHD and XSD?
SCHD and XSD have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and XSD?
SCHD and XSD share 3 common holdings with a 5.0% weight overlap. Combined, they hold 144 unique securities.
Which pays a higher dividend, SCHD or XSD?
SCHD yields 3.13% while XSD yields 0.16%, so SCHD currently pays the higher dividend yield.
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