SCHD vs XSW
Schwab US Dividend Equity ETF vs State Street SPDR S&P Software & Services ETF
Which is better, SCHD or XSW?
Large Cap Value against Mid Cap Growth.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y and 5Y, XSW over the full window. XSW is less concentrated, with 11.2% of the fund in its ten largest positions against 41.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SCHD | XSW |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.35% |
| AUM | $112.1B | $494M |
| Dividend Yield | 3.00% | 0.00% |
| Holdings | 103 | 133 |
| YTD Return | +24.96%Best | +5.74% |
| 1Y Return | +28.75%Best | -0.22% |
| 3Y Return (annualized) | +15.71%Best | +13.40% |
| 5Y Return (annualized) | +9.86%Best | +1.86% |
| Volatility (annualized) | 13.6%Best | 20.7% |
| Max Drawdown | -33.4%Best | -45.4% |
| $10,000 over 5 years | $16,003Best | $10,965 |
| Top 10 Weight | 41.8% | 11.2%Best |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Mid Cap Growth |
| Inception | Oct 20, 2011 | Sep 28, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 9, 2026 (14.9 years).
SCHD vs XSW growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 14.9 years both funds cover.
SCHD vs XSW Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and State Street SPDR S&P Software & Services ETF (XSW) is an ETF from State Street Investment Management. Over the past year SCHD returned +28.75% while XSW returned -0.22%. Year to date, SCHD is up 24.96% versus a gain of 5.74% for XSW.
Over three years, SCHD compounded at +15.71% per year against +13.40% for XSW; over five years the annualized figures are +9.86% and +1.86% respectively. Across the full 15-year window we track, XSW has the edge at +14.85% annualized vs +11.36%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XSW has been the more volatile fund, with annualized monthly volatility of 20.7% 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 -45.4% for XSW. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.58. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SCHD charges 0.06% per year while XSW 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 3.00% against 0.00% for XSW.
Holdings Overlap
We hold position weights for 100 holdings in SCHD and 132 in XSW, totalling 100.0% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 100 positions we hold weights for in SCHD and 132 in XSW, against full books of 103 and 133.
What only one of them owns
Our book lists 131 positions for XSW that do not appear in our book for SCHD (99.3% of the fund), and 99 for SCHD that do not appear in XSW (99.9%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of SCHD and XSW you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SCHD or XSW?
SCHD has an expense ratio of 0.06% while XSW charges 0.35%. SCHD is the cheaper option, by $29 a year on a $10,000 investment.
Which performed better, SCHD or XSW?
Over the past year SCHD returned +28.75% vs -0.22% for XSW, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.36% vs +14.85% for XSW. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or XSW?
XSW has been the more volatile fund at 20.7% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs XSW -45.4%.
Should I hold both SCHD and XSW?
SCHD and XSW have a monthly-return correlation of 0.58, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, SCHD or XSW?
SCHD yields 3.00% while XSW yields 0.00%, so SCHD currently pays the higher dividend yield.
Is XSW better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y and 5Y, XSW over the full window. XSW is less concentrated, with 11.2% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.