SCHD vs ZSEP
Schwab US Dividend Equity ETF vs Innovator Equity Defined Protection ETF - 1 Yr September
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | SCHD | ZSEP | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.79% | |
| AUM | $108.7B | $123M | |
| Dividend Yield | 3.13% | 0.00% | |
| Holdings | 104 | 5 | |
| YTD Return | +27.67% | +3.71% | |
| 1Y Return | +31.26% | +5.94% | |
| 3Y Return (annualized) | +16.66% | - | |
| 5Y Return (annualized) | +10.18% | - | |
| Volatility (annualized) | 13.6% | 2.7% | |
| Max Drawdown | -33.4% | -4.0% | |
| Fund Family | Charles Schwab Asset Management | Innovator ETFs Trust | |
| Category | Equity | Alternative | |
| Inception | Oct 20, 2011 | Aug 31, 2024 |
SCHD vs ZSEP Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Innovator Equity Defined Protection ETF - 1 Yr September (ZSEP) is a ETF from Innovator ETFs Trust. Over the past year SCHD returned +31.26% while ZSEP returned +5.94%. Year to date, SCHD is up 27.67% versus a gain of 3.71% for ZSEP.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 2.7% for ZSEP. 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 -4.0% for ZSEP. 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 ZSEP 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 3.13% against 0.00% for ZSEP.
Frequently Asked Questions
Which is cheaper, SCHD or ZSEP?
SCHD has an expense ratio of 0.06% while ZSEP 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 ZSEP?
Over the past year SCHD returned +31.26% vs +5.94% for ZSEP, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), SCHD annualized +11.57% vs +6.54% for ZSEP. Past performance does not guarantee future results.
Which is riskier, SCHD or ZSEP?
SCHD has been the more volatile fund at 13.6% annualized versus 2.7% for ZSEP. Worst drawdown: SCHD -33.4% vs ZSEP -4.0%.
Should I hold both SCHD and ZSEP?
SCHD and ZSEP 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 ZSEP?
SCHD yields 3.13% while ZSEP yields 0.00%, so SCHD currently pays the higher dividend yield.
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