SCHD vs XSEP
Schwab US Dividend Equity ETF vs FT Vest US Equity Enhance & Moderate Buffer ETF - September
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 | XSEP | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.85% | |
| AUM | $103.7B | $135M | |
| Dividend Yield | 3.31% | 0.00% | |
| Holdings | 104 | 6 | |
| YTD Return | +25.58% | +6.14% | |
| 1Y Return | +31.06% | +9.15% | |
| 3Y Return (annualized) | +15.55% | +9.58% | |
| 5Y Return (annualized) | +9.61% | - | |
| Volatility (annualized) | 13.6% | 5.1% | |
| Max Drawdown | -33.4% | -9.2% | |
| Fund Family | Charles Schwab Asset Management | First Trust Portfolios (US) | |
| Category | Equity | Alternative | |
| Inception | Oct 20, 2011 | Sep 21, 2022 |
SCHD vs XSEP Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and FT Vest US Equity Enhance & Moderate Buffer ETF - September (XSEP) is a ETF from First Trust Portfolios (US). Over the past year SCHD returned +31.06% while XSEP returned +9.15%. Year to date, SCHD is up 25.58% versus a gain of 6.14% for XSEP.
Over three years, SCHD compounded at +15.55% per year against +9.58% for XSEP. Across the full 4-year window we track, SCHD has the edge at +11.46% annualized vs +10.91%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 5.1% for XSEP. 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 -9.2% for XSEP. 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while XSEP charges 0.85%. On a $10,000 position that is $6 vs $85 annually, a gap of $79 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.00% for XSEP.
Holdings Overlap
SCHD and XSEP share 0 holdings out of 101 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or XSEP?
SCHD has an expense ratio of 0.06% while XSEP charges 0.85%. SCHD is the cheaper option. On a $10,000 investment, that is $79 per year of difference.
Which performed better, SCHD or XSEP?
Over the past year SCHD returned +31.06% vs +9.15% for XSEP, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), SCHD annualized +11.46% vs +10.91% for XSEP. Past performance does not guarantee future results.
Which is riskier, SCHD or XSEP?
SCHD has been the more volatile fund at 13.6% annualized versus 5.1% for XSEP. Worst drawdown: SCHD -33.4% vs XSEP -9.2%.
Should I hold both SCHD and XSEP?
SCHD and XSEP have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and XSEP?
SCHD and XSEP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 101 unique securities.
Which pays a higher dividend, SCHD or XSEP?
SCHD yields 3.31% while XSEP yields 0.00%, so SCHD currently pays the higher dividend yield.
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