SCHD vs XLC
Schwab US Dividend Equity ETF vs State Street Communication Services Select Sector SPDR ETF
Which is better, SCHD or XLC?
Large Cap Value against Large Cap Growth.
SCHD has a lower expense ratio. SCHD led over 1Y, 5Y and the full window, XLC over 3Y. SCHD is less concentrated, with 41.6% of the fund in its ten largest positions against 70.5%.
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 | SCHD | XLC |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.08% |
| AUM | $111.6B | $22.7B |
| Dividend Yield | 3.24% | 1.28% |
| Holdings | 206 | 54 |
| YTD Return | +24.55%Best | -4.34% |
| 1Y Return | +29.85%Best | -2.09% |
| 3Y Return (annualized) | +16.64% | +18.99%Best |
| 5Y Return (annualized) | +9.54%Best | +7.74% |
| Volatility (annualized) | 16.5%Best | 18.8% |
| Max Drawdown | -33.4%Best | -46.6% |
| $10,000 over 5 years | $15,771Best | $14,517 |
| Top 10 Weight | 41.6%Best | 70.5% |
| Fund Family | Charles Schwab Asset Management | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Growth |
| Inception | Oct 20, 2011 | Jun 18, 2018 |
Volatility and max drawdown are measured over the window both funds cover: Jun 19, 2018 to Oct 14, 2026 (8.3 years).
SCHD vs XLC 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 8.3 years both funds cover.
SCHD vs XLC Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and State Street Communication Services Select Sector SPDR ETF (XLC) is an ETF from SPDR State Street Global Advisors. Over the past year SCHD returned +29.85% while XLC returned -2.09%. Year to date, SCHD is up 24.55% versus a loss of 4.34% for XLC.
Over three years, SCHD compounded at +16.64% per year against +18.99% for XLC; over five years the annualized figures are +9.54% and +7.74% respectively. Across the full 8-year window we track, SCHD has the edge at +11.40% annualized vs +10.82%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLC has been the more volatile fund, with annualized monthly volatility of 18.8% compared with 16.5% 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 -33.4% for SCHD and -46.6% for XLC. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.69. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SCHD charges 0.06% per year while XLC charges 0.08%. On a $10,000 position that is $6 vs $8 annually, a gap of $2 per year that compounds over a long holding period. On income, SCHD currently yields 3.24% against 1.28% for XLC.
Holdings Overlap
5.8% of SCHD's money is in holdings XLC also owns. 9.6% of XLC's money is in holdings SCHD also owns.
XLC and SCHD share little of their money.
2 positions in common, counted across the 98 positions we hold weights for in SCHD and 25 in XLC, against full books of 206 and 54.
What only one of them owns
Our book lists 23 positions for XLC that do not appear in our book for SCHD (90.3% of the fund), and 95 for SCHD that do not appear in XLC (93.9%).
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.
You are not choosing between two funds in isolation.
Whichever of SCHD and XLC you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SCHD or XLC?
SCHD has an expense ratio of 0.06% while XLC charges 0.08%. SCHD is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, SCHD or XLC?
Over the past year SCHD returned +29.85% vs -2.09% for XLC, so SCHD leads on 1-year performance. Over the longest common window we track (8 years), SCHD annualized +11.40% vs +10.82% for XLC. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or XLC?
XLC has been the more volatile fund at 18.8% annualized versus 16.5% for SCHD. Worst drawdown: SCHD -33.4% vs XLC -46.6%.
Should I hold both SCHD and XLC?
SCHD and XLC have a monthly-return correlation of 0.69, 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 SCHD and XLC?
9.6% of XLC's money is in holdings SCHD also owns. 9.6% of XLC's is in holdings SCHD also owns. They hold 2 positions in common, counted across the 98 positions we hold weights for in SCHD and 25 in XLC.
Which pays a higher dividend, SCHD or XLC?
SCHD yields 3.24% while XLC yields 1.28%, so SCHD currently pays the higher dividend yield.
Is XLC better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 5Y and the full window, XLC over 3Y. SCHD is less concentrated, with 41.6% of the fund in its ten largest positions against 70.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.