SCHD vs ZAUG

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricSCHDZAUGWinner
Expense Ratio0.06%0.79%
AUM$103.7B$98M
Dividend Yield3.31%0.00%
Holdings1045
YTD Return+25.62%+4.34%
1Y Return+32.62%+6.72%
3Y Return (annualized)+15.58%-
5Y Return (annualized)+9.63%-
Volatility (annualized)13.6%3.1%
Max Drawdown-33.4%-4.8%
Fund FamilyCharles Schwab Asset ManagementInnovator ETFs Trust
CategoryEquityAlternative
InceptionOct 20, 2011Jul 31, 2024

SCHD vs ZAUG Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Innovator Equity Defined Protection ETF - 1 Yr August (ZAUG) is a ETF from Innovator ETFs Trust. Over the past year SCHD returned +32.62% while ZAUG returned +6.72%. Year to date, SCHD is up 25.62% versus a gain of 4.34% for ZAUG.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 3.1% for ZAUG. 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 -4.8% for ZAUG. 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while ZAUG charges 0.79%. On a $10,000 position that is $6 vs $79 annually, a gap of $73 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.00% for ZAUG.

Frequently Asked Questions

Which is cheaper, SCHD or ZAUG?

SCHD has an expense ratio of 0.06% while ZAUG charges 0.79%. SCHD is the cheaper option. On a $10,000 investment, that is $73 per year of difference.

Which performed better, SCHD or ZAUG?

Over the past year SCHD returned +32.62% vs +6.72% for ZAUG, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), SCHD annualized +11.47% vs +7.63% for ZAUG. Past performance does not guarantee future results.

Which is riskier, SCHD or ZAUG?

SCHD has been the more volatile fund at 13.6% annualized versus 3.1% for ZAUG. Worst drawdown: SCHD -33.4% vs ZAUG -4.8%.

Should I hold both SCHD and ZAUG?

SCHD and ZAUG have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, SCHD or ZAUG?

SCHD yields 3.31% while ZAUG yields 0.00%, so SCHD currently pays the higher dividend yield.

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