SCHD vs XSLV
Schwab US Dividend Equity ETF vs Invesco S&P SmallCap Low Volatility ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. XSLV offers more diversification with 119 holdings.
Side-by-Side Comparison
| Metric | SCHD | XSLV | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.25% | |
| AUM | $108.7B | $250M | |
| Dividend Yield | 3.13% | 2.06% | |
| Holdings | 104 | 119 | |
| YTD Return | +26.50% | +15.98% | |
| 1Y Return | +31.25% | +18.64% | |
| 3Y Return (annualized) | +16.34% | +11.55% | |
| 5Y Return (annualized) | +10.10% | +4.56% | |
| Volatility (annualized) | 13.6% | 16.6% | |
| Max Drawdown | -33.4% | -45.3% | |
| Fund Family | Charles Schwab Asset Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Feb 12, 2013 |
SCHD vs XSLV Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Invesco S&P SmallCap Low Volatility ETF (XSLV) is a ETF from Invesco (US). Over the past year SCHD returned +31.25% while XSLV returned +18.64%. Year to date, SCHD is up 26.50% versus a gain of 15.98% for XSLV.
Over three years, SCHD compounded at +16.34% per year against +11.55% for XSLV; over five years the annualized figures are +10.10% and +4.56% respectively. Across the full 14-year window we track, SCHD has the edge at +11.50% annualized vs +6.56%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XSLV has been the more volatile fund, with annualized monthly volatility of 16.6% 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 -45.3% for XSLV. 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while XSLV charges 0.25%. On a $10,000 position that is $6 vs $25 annually, a gap of $19 per year that compounds over a long holding period. On income, SCHD currently yields 3.13% against 2.06% for XSLV.
Holdings Overlap
SCHD and XSLV share 14 holdings out of 201 unique holdings combined, representing a 0.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or XSLV?
SCHD has an expense ratio of 0.06% while XSLV charges 0.25%. SCHD is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, SCHD or XSLV?
Over the past year SCHD returned +31.25% vs +18.64% for XSLV, so SCHD leads on 1-year performance. Over the longest common window we track (14 years), SCHD annualized +11.50% vs +6.56% for XSLV. Past performance does not guarantee future results.
Which is riskier, SCHD or XSLV?
XSLV has been the more volatile fund at 16.6% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs XSLV -45.3%.
Should I hold both SCHD and XSLV?
SCHD and XSLV have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and XSLV?
SCHD and XSLV share 14 common holdings with a 0.8% weight overlap. Combined, they hold 201 unique securities.
Which pays a higher dividend, SCHD or XSLV?
SCHD yields 3.13% while XSLV yields 2.06%, so SCHD currently pays the higher dividend yield.
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