SCHD vs XLRE
Schwab US Dividend Equity ETF vs State Street Real Estate Select Sector SPDR ETF
Which is better, SCHD or XLRE?
Large Cap Value against Large Cap Blend.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. SCHD is less concentrated, with 41.6% of the fund in its ten largest positions against 61.7%.
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 | XLRE |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.08% |
| AUM | $111.6B | $7.7B |
| Dividend Yield | 3.24% | 3.19% |
| Holdings | 206 | 66 |
| YTD Return | +24.55%Best | +5.22% |
| 1Y Return | +29.85%Best | +4.00% |
| 3Y Return (annualized) | +16.64%Best | +9.87% |
| 5Y Return (annualized) | +9.54%Best | +1.27% |
| Volatility (annualized) | 14.9%Best | 17.0% |
| Max Drawdown | -33.4%Best | -39.3% |
| $10,000 over 5 years | $15,771Best | $10,651 |
| Top 10 Weight | 41.6%Best | 61.7% |
| Fund Family | Charles Schwab Asset Management | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | Oct 20, 2011 | Oct 7, 2015 |
Volatility and max drawdown are measured over the window both funds cover: Oct 8, 2015 to Oct 14, 2026 (11 years).
SCHD vs XLRE 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 11 years both funds cover.
SCHD vs XLRE Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and State Street Real Estate Select Sector SPDR ETF (XLRE) is an ETF from SPDR State Street Global Advisors. Over the past year SCHD returned +29.85% while XLRE returned +4.00%. Year to date, SCHD is up 24.55% versus a gain of 5.22% for XLRE.
Over three years, SCHD compounded at +16.64% per year against +9.87% for XLRE; over five years the annualized figures are +9.54% and +1.27% respectively. Across the full 11-year window we track, SCHD has the edge at +11.29% annualized vs +4.73%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLRE has been the more volatile fund, with annualized monthly volatility of 17.0% compared with 14.9% 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 -39.3% for XLRE. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while XLRE 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 3.19% for XLRE.
Holdings Overlap
We hold position weights for 98 holdings in SCHD and 31 in XLRE, totalling 99.8% and 99.8% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 98 positions we hold weights for in SCHD and 31 in XLRE, against full books of 206 and 66.
What only one of them owns
Our book lists 31 positions for XLRE that do not appear in our book for SCHD (99.8% of the fund), and 97 for SCHD that do not appear in XLRE (99.8%).
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 XLRE 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 XLRE?
SCHD has an expense ratio of 0.06% while XLRE charges 0.08%. SCHD is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, SCHD or XLRE?
Over the past year SCHD returned +29.85% vs +4.00% for XLRE, so SCHD leads on 1-year performance. Over the longest common window we track (11 years), SCHD annualized +11.29% vs +4.73% for XLRE. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or XLRE?
XLRE has been the more volatile fund at 17.0% annualized versus 14.9% for SCHD. Worst drawdown: SCHD -33.4% vs XLRE -39.3%.
Should I hold both SCHD and XLRE?
SCHD and XLRE have a monthly-return correlation of 0.73, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, SCHD or XLRE?
SCHD yields 3.24% while XLRE yields 3.19%, so SCHD currently pays the higher dividend yield.
Is XLRE better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. SCHD is less concentrated, with 41.6% of the fund in its ten largest positions against 61.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.