SCHD vs XSHD
Schwab US Dividend Equity ETF vs Invesco S&P SmallCap High Dividend Low Volatility 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 | XSHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.30% | |
| AUM | $103.7B | $73M | |
| Dividend Yield | 3.31% | 5.04% | |
| Holdings | 104 | 57 | |
| YTD Return | +25.33% | +10.30% | |
| 1Y Return | +32.31% | +11.50% | |
| 3Y Return (annualized) | +15.40% | +1.05% | |
| 5Y Return (annualized) | +9.70% | -3.79% | |
| Volatility (annualized) | 13.6% | 21.6% | |
| Max Drawdown | -33.4% | -49.5% | |
| Fund Family | Charles Schwab Asset Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Dec 1, 2016 |
SCHD vs XSHD Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Invesco S&P SmallCap High Dividend Low Volatility ETF (XSHD) is a ETF from Invesco (US). Over the past year SCHD returned +32.31% while XSHD returned +11.50%. Year to date, SCHD is up 25.33% versus a gain of 10.30% for XSHD.
Over three years, SCHD compounded at +15.40% per year against +1.05% for XSHD; over five years the annualized figures are +9.70% and -3.79% respectively. Across the full 10-year window we track, SCHD has the edge at +11.45% annualized vs -0.39%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XSHD has been the more volatile fund, with annualized monthly volatility of 21.6% 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 -49.5% for XSHD. 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while XSHD charges 0.30%. On a $10,000 position that is $6 vs $30 annually, a gap of $24 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 5.04% for XSHD.
Holdings Overlap
SCHD and XSHD share 5 holdings out of 148 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or XSHD?
SCHD has an expense ratio of 0.06% while XSHD charges 0.30%. SCHD is the cheaper option. On a $10,000 investment, that is $24 per year of difference.
Which performed better, SCHD or XSHD?
Over the past year SCHD returned +32.31% vs +11.50% for XSHD, so SCHD leads on 1-year performance. Over the longest common window we track (10 years), SCHD annualized +11.45% vs -0.39% for XSHD. Past performance does not guarantee future results.
Which is riskier, SCHD or XSHD?
XSHD has been the more volatile fund at 21.6% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs XSHD -49.5%.
Should I hold both SCHD and XSHD?
SCHD and XSHD have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and XSHD?
SCHD and XSHD share 5 common holdings with a 0.4% weight overlap. Combined, they hold 148 unique securities.
Which pays a higher dividend, SCHD or XSHD?
SCHD yields 3.31% while XSHD yields 5.04%, so XSHD currently pays the higher dividend yield.
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