SCHD vs ZSC

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

MetricSCHDZSCWinner
Expense Ratio0.06%0.59%
AUM$103.7B$3M
Dividend Yield3.31%1.69%
Holdings10431
YTD Return+24.26%+7.75%
1Y Return+31.38%+30.03%
3Y Return (annualized)+15.08%+1.78%
5Y Return (annualized)+9.72%-
Volatility (annualized)13.6%13.6%
Max Drawdown-33.4%-26.5%
Fund FamilyCharles Schwab Asset ManagementUSCF Investments
CategoryEquityEquity
InceptionOct 20, 2011Aug 9, 2023

SCHD vs ZSC Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and USCF Sustainable Commodity Strategy Fund (ZSC) is a ETF from USCF Investments. Over the past year SCHD returned +31.38% while ZSC returned +30.03%. Year to date, SCHD is up 24.26% versus a gain of 7.75% for ZSC.

Over three years, SCHD compounded at +15.08% per year against +1.78% for ZSC. Across the full 3-year window we track, SCHD has the edge at +11.39% annualized vs +1.78%. 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 13.6% for ZSC. 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 -26.5% for ZSC. 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while ZSC charges 0.59%. On a $10,000 position that is $6 vs $59 annually, a gap of $53 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 1.69% for ZSC.

Frequently Asked Questions

Which is cheaper, SCHD or ZSC?

SCHD has an expense ratio of 0.06% while ZSC charges 0.59%. SCHD is the cheaper option. On a $10,000 investment, that is $53 per year of difference.

Which performed better, SCHD or ZSC?

Over the past year SCHD returned +31.38% vs +30.03% for ZSC, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), SCHD annualized +11.39% vs +1.78% for ZSC. Past performance does not guarantee future results.

Which is riskier, SCHD or ZSC?

SCHD has been the more volatile fund at 13.6% annualized versus 13.6% for ZSC. Worst drawdown: SCHD -33.4% vs ZSC -26.5%.

Should I hold both SCHD and ZSC?

SCHD and ZSC have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, SCHD or ZSC?

SCHD yields 3.31% while ZSC yields 1.69%, so SCHD currently pays the higher dividend yield.

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