SCHD vs XLV
Schwab US Dividend Equity ETF vs State Street Health Care Select Sector SPDR ETF
Which is better, SCHD or XLV?
Large Cap Value against Large Cap Blend.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y and 5Y, XLV over the full window. SCHD is less concentrated, with 41.6% of the fund in its ten largest positions against 60.6%.
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 | XLV |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.08% |
| AUM | $111.6B | $43.9B |
| Dividend Yield | 3.24% | 1.49% |
| Holdings | 206 | 126 |
| YTD Return | +24.55%Best | +13.25% |
| 1Y Return | +29.85%Best | +24.26% |
| 3Y Return (annualized) | +16.64%Best | +11.73% |
| 5Y Return (annualized) | +9.54%Best | +8.18% |
| Volatility (annualized) | 13.7% | 13.6%Best |
| Max Drawdown | -33.4% | -28.8%Best |
| $10,000 over 5 years | $15,771Best | $14,816 |
| Top 10 Weight | 41.6%Best | 60.6% |
| 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 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Oct 14, 2026 (15 years).
SCHD vs XLV 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 15 years both funds cover.
SCHD vs XLV Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and State Street Health Care Select Sector SPDR ETF (XLV) is an ETF from SPDR State Street Global Advisors. Over the past year SCHD returned +29.85% while XLV returned +24.26%. Year to date, SCHD is up 24.55% versus a gain of 13.25% for XLV.
Over three years, SCHD compounded at +16.64% per year against +11.73% for XLV; over five years the annualized figures are +9.54% and +8.18% respectively. Across the full 15-year window we track, XLV has the edge at +12.55% annualized vs +11.26%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 13.6% for XLV. 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 -28.8% for XLV. 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 XLV 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 1.49% for XLV.
Holdings Overlap
18.8% of SCHD's money is in holdings XLV also owns. 20.3% of XLV's money is in holdings SCHD also owns.
XLV and SCHD share little of their money.
5 positions in common, counted across the 98 positions we hold weights for in SCHD and 61 in XLV, against full books of 206 and 126.
What only one of them owns
Our book lists 55 positions for XLV that do not appear in our book for SCHD (79.7% of the fund), and 92 for SCHD that do not appear in XLV (81.0%).
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.
20.3% of XLV is already inside SCHD.
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, SCHD or XLV?
SCHD has an expense ratio of 0.06% while XLV charges 0.08%. SCHD is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, SCHD or XLV?
Over the past year SCHD returned +29.85% vs +24.26% for XLV, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.26% vs +12.55% for XLV. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or XLV?
SCHD has been the more volatile fund at 13.7% annualized versus 13.6% for XLV. Worst drawdown: SCHD -33.4% vs XLV -28.8%.
Should I hold both SCHD and XLV?
SCHD and XLV 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.
What is the holdings overlap between SCHD and XLV?
20.3% of XLV's money is in holdings SCHD also owns. 20.3% of XLV's is in holdings SCHD also owns. They hold 5 positions in common, counted across the 98 positions we hold weights for in SCHD and 61 in XLV.
Which pays a higher dividend, SCHD or XLV?
SCHD yields 3.24% while XLV yields 1.49%, so SCHD currently pays the higher dividend yield.
Is XLV better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y and 5Y, XLV over the full window. SCHD is less concentrated, with 41.6% of the fund in its ten largest positions against 60.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.