SCHD vs ZHDG
Schwab US Dividend Equity ETF vs ZEGA Buy and Hedge ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | ZHDG | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.97% | |
| AUM | $103.7B | $35M | |
| Dividend Yield | 3.31% | 2.47% | |
| Holdings | 104 | 10 | |
| YTD Return | +25.58% | +7.26% | |
| 1Y Return | +31.06% | +12.44% | |
| 3Y Return (annualized) | +15.55% | +13.27% | |
| 5Y Return (annualized) | +9.61% | +5.93% | |
| Volatility (annualized) | 13.6% | 12.5% | |
| Max Drawdown | -33.4% | -23.3% | |
| Fund Family | Charles Schwab Asset Management | Zega ETFs | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Jul 6, 2021 |
SCHD vs ZHDG Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and ZEGA Buy and Hedge ETF (ZHDG) is a ETF from Zega ETFs. Over the past year SCHD returned +31.06% while ZHDG returned +12.44%. Year to date, SCHD is up 25.58% versus a gain of 7.26% for ZHDG.
Over three years, SCHD compounded at +15.55% per year against +13.27% for ZHDG; over five years the annualized figures are +9.61% and +5.93% respectively. Across the full 5-year window we track, SCHD has the edge at +11.46% annualized vs +6.04%. 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 12.5% for ZHDG. 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 -23.3% for ZHDG. 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while ZHDG charges 0.97%. On a $10,000 position that is $6 vs $97 annually, a gap of $91 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 2.47% for ZHDG.
Holdings Overlap
SCHD and ZHDG share 0 holdings out of 104 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 ZHDG?
SCHD has an expense ratio of 0.06% while ZHDG charges 0.97%. SCHD is the cheaper option. On a $10,000 investment, that is $91 per year of difference.
Which performed better, SCHD or ZHDG?
Over the past year SCHD returned +31.06% vs +12.44% for ZHDG, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), SCHD annualized +11.46% vs +6.04% for ZHDG. Past performance does not guarantee future results.
Which is riskier, SCHD or ZHDG?
SCHD has been the more volatile fund at 13.6% annualized versus 12.5% for ZHDG. Worst drawdown: SCHD -33.4% vs ZHDG -23.3%.
Should I hold both SCHD and ZHDG?
SCHD and ZHDG have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and ZHDG?
SCHD and ZHDG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, SCHD or ZHDG?
SCHD yields 3.31% while ZHDG yields 2.47%, so SCHD currently pays the higher dividend yield.
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