SCHD vs YLD
Schwab US Dividend Equity ETF vs Principal Active High Yield ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. YLD offers more diversification with 109 holdings.
Side-by-Side Comparison
| Metric | SCHD | YLD | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.39% | |
| AUM | $103.7B | $580M | |
| Dividend Yield | 3.31% | 7.26% | |
| Holdings | 104 | 148 | |
| YTD Return | +25.33% | +3.16% | |
| 1Y Return | +32.31% | +5.09% | |
| 3Y Return (annualized) | +15.40% | +8.18% | |
| 5Y Return (annualized) | +9.70% | +4.51% | |
| Volatility (annualized) | 13.6% | 8.7% | |
| Max Drawdown | -33.4% | -30.3% | |
| Fund Family | Charles Schwab Asset Management | Principal Funds | |
| Category | Equity | Allocation/Balanced | |
| Inception | Oct 20, 2011 | Jul 8, 2015 |
SCHD vs YLD Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Principal Active High Yield ETF (YLD) is a ETF from Principal Funds. Over the past year SCHD returned +32.31% while YLD returned +5.09%. Year to date, SCHD is up 25.33% versus a gain of 3.16% for YLD.
Over three years, SCHD compounded at +15.40% per year against +8.18% for YLD; over five years the annualized figures are +9.70% and +4.51% respectively. Across the full 11-year window we track, SCHD has the edge at +11.45% annualized vs +2.58%. 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 8.7% for YLD. 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 -30.3% for YLD. 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while YLD charges 0.39%. On a $10,000 position that is $6 vs $39 annually, a gap of $33 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 7.26% for YLD.
Holdings Overlap
SCHD and YLD share 1 holdings out of 208 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in YLD | Difference |
|---|---|---|---|
| GVMXX | 0.04% | 5.42% | 5.38% |
Frequently Asked Questions
Which is cheaper, SCHD or YLD?
SCHD has an expense ratio of 0.06% while YLD charges 0.39%. SCHD is the cheaper option. On a $10,000 investment, that is $33 per year of difference.
Which performed better, SCHD or YLD?
Over the past year SCHD returned +32.31% vs +5.09% for YLD, so SCHD leads on 1-year performance. Over the longest common window we track (11 years), SCHD annualized +11.45% vs +2.58% for YLD. Past performance does not guarantee future results.
Which is riskier, SCHD or YLD?
SCHD has been the more volatile fund at 13.6% annualized versus 8.7% for YLD. Worst drawdown: SCHD -33.4% vs YLD -30.3%.
Should I hold both SCHD and YLD?
SCHD and YLD have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and YLD?
SCHD and YLD share 1 common holdings with a 0.0% weight overlap. Combined, they hold 208 unique securities.
Which pays a higher dividend, SCHD or YLD?
SCHD yields 3.31% while YLD yields 7.26%, so YLD currently pays the higher dividend yield.
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