SCHD vs XSOE
Schwab US Dividend Equity ETF vs WisdomTree Emerging Markets Ex-State Owned Enterprises Fund
Quick Verdict
SCHD has a lower expense ratio. XSOE delivered stronger 1-year returns. XSOE offers more diversification with 733 holdings.
Side-by-Side Comparison
| Metric | SCHD | XSOE | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.33% | |
| AUM | $103.7B | $2.0B | |
| Dividend Yield | 3.31% | 1.08% | |
| Holdings | 104 | 827 | |
| YTD Return | +25.33% | +16.76% | |
| 1Y Return | +32.31% | +34.33% | |
| 3Y Return (annualized) | +15.40% | +19.82% | |
| 5Y Return (annualized) | +9.70% | +5.04% | |
| Volatility (annualized) | 13.6% | 18.4% | |
| Max Drawdown | -33.4% | -45.2% | |
| Fund Family | Charles Schwab Asset Management | WisdomTree Investments | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Dec 10, 2014 |
SCHD vs XSOE Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and WisdomTree Emerging Markets Ex-State Owned Enterprises Fund (XSOE) is a ETF from WisdomTree Investments. Over the past year SCHD returned +32.31% while XSOE returned +34.33%. Year to date, SCHD is up 25.33% versus a gain of 16.76% for XSOE.
Over three years, SCHD compounded at +15.40% per year against +19.82% for XSOE; over five years the annualized figures are +9.70% and +5.04% respectively. Across the full 12-year window we track, SCHD has the edge at +11.45% annualized vs +6.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XSOE has been the more volatile fund, with annualized monthly volatility of 18.4% 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 -45.2% for XSOE. 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 XSOE charges 0.33%. On a $10,000 position that is $6 vs $33 annually, a gap of $27 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 1.08% for XSOE.
Holdings Overlap
SCHD and XSOE share 0 holdings out of 833 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 XSOE?
SCHD has an expense ratio of 0.06% while XSOE charges 0.33%. SCHD is the cheaper option. On a $10,000 investment, that is $27 per year of difference.
Which performed better, SCHD or XSOE?
Over the past year SCHD returned +32.31% vs +34.33% for XSOE, so XSOE leads on 1-year performance. Over the longest common window we track (12 years), SCHD annualized +11.45% vs +6.45% for XSOE. Past performance does not guarantee future results.
Which is riskier, SCHD or XSOE?
XSOE has been the more volatile fund at 18.4% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs XSOE -45.2%.
Should I hold both SCHD and XSOE?
SCHD and XSOE 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 XSOE?
SCHD and XSOE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 833 unique securities.
Which pays a higher dividend, SCHD or XSOE?
SCHD yields 3.31% while XSOE yields 1.08%, so SCHD currently pays the higher dividend yield.
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