QUAL vs SCHD
iShares MSCI USA Quality Factor ETF vs Schwab US Dividend Equity ETF
Which is better, QUAL or SCHD?
Large Cap Blend against Large Cap Value.
SCHD has a lower expense ratio. QUAL led over 3Y, 5Y and the full window, SCHD over 1Y. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 44.3%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | QUAL | SCHD |
|---|---|---|
| Expense Ratio | 0.15% | 0.06%Best |
| AUM | $48.2B | $108.9B |
| Dividend Yield | 0.85% | 3.00% |
| Holdings | 122 | 206 |
| YTD Return | +14.25% | +23.29%Best |
| 1Y Return | +18.35% | +29.70%Best |
| 3Y Return (annualized) | +19.66%Best | +16.26% |
| 5Y Return (annualized) | +12.36%Best | +9.65% |
| Volatility (annualized) | 14.6% | 14.3%Best |
| Max Drawdown | -34.1% | -33.4%Best |
| $10,000 over 5 years | $17,908Best | $15,851 |
| Top 10 Weight | 44.3% | 41.8%Best |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Jul 16, 2013 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Jul 18, 2013 to Oct 13, 2026 (13.2 years).
QUAL vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 13.2 years both funds cover.
QUAL vs SCHD Performance
iShares MSCI USA Quality Factor ETF (QUAL) is an ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year QUAL returned +18.35% while SCHD returned +29.70%. Year to date, QUAL is up 14.25% versus a gain of 23.29% for SCHD.
Over three years, QUAL compounded at +19.66% per year against +16.26% for SCHD; over five years the annualized figures are +12.36% and +9.65% respectively. Across the full 13-year window we track, QUAL has the edge at +12.63% annualized vs +10.10%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QUAL has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 14.3% for SCHD. 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 -34.1% for QUAL and -33.4% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QUAL charges 0.15% per year while SCHD charges 0.06%. On a $10,000 position that is $15 vs $6 annually, a gap of $9 per year that compounds over a long holding period. On income, QUAL currently yields 0.85% against 3.00% for SCHD.
Holdings Overlap
8.4% of QUAL's money is in holdings SCHD also owns. 34.9% of SCHD's money is in holdings QUAL also owns.
The two portfolios partly overlap.
16 positions in common, counted across the 119 positions we hold weights for in QUAL and 99 in SCHD, against full books of 122 and 206.
What only one of them owns
Our book lists 82 positions for SCHD that do not appear in our book for QUAL (65.0% of the fund), and 102 for QUAL that do not appear in SCHD (91.4%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in QUAL | Weight in SCHD | Difference |
|---|---|---|---|
| MRKMerck & Company Inc | 1.38% | 4.77% | 3.39% |
| KOCoca Cola Co. | 0.82% | 4.26% | 3.44% |
| PGProcter & Gamble Company | 0.82% | 3.94% | 3.12% |
| PEPPepsico Inc. | 0.35% | 3.63% | 3.28% |
| ADPAutomatic Data Processing, Inc. | 1.19% | 2.68% | 1.49% |
| ACNAccenture Plc | 0.76% | 2.83% | 2.07% |
| LMTLockheed Martin Corp | 0.86% | 2.66% | 1.80% |
| SLBSchlumberger Nv. | 0.33% | 2.10% | 1.77% |
| EOGEog Resources Inc | 0.32% | 1.96% | 1.64% |
| FASTFastenal Co. | 0.53% | 1.42% | 0.89% |
34.9% of SCHD is already inside QUAL.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QUAL or SCHD?
QUAL has an expense ratio of 0.15% while SCHD charges 0.06%. SCHD is the cheaper option, by $9 a year on a $10,000 investment.
Which performed better, QUAL or SCHD?
Over the past year QUAL returned +18.35% vs +29.70% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (13 years), QUAL annualized +12.63% vs +10.10% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QUAL or SCHD?
QUAL has been the more volatile fund at 14.6% annualized versus 14.3% for SCHD. Worst drawdown: QUAL -34.1% vs SCHD -33.4%.
Should I hold both QUAL and SCHD?
QUAL and SCHD have a monthly-return correlation of 0.85, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between QUAL and SCHD?
34.9% of SCHD's money is in holdings QUAL also owns. 34.9% of SCHD's is in holdings QUAL also owns. They hold 16 positions in common, counted across the 119 positions we hold weights for in QUAL and 99 in SCHD.
Which pays a higher dividend, QUAL or SCHD?
QUAL yields 0.85% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.
Is SCHD better than QUAL?
SCHD has a lower expense ratio. QUAL led over 3Y, 5Y and the full window, SCHD over 1Y. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 44.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.