ACLO vs SCHD
ACLO vs SCHD
TCW AAA CLO ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | ACLO | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.06% | |
| AUM | $335M | $103.7B | |
| Dividend Yield | 4.89% | 3.31% | |
| Holdings | 229 | 104 | |
| YTD Return | +2.92% | +22.69% | |
| 1Y Return | +5.15% | +30.94% | |
| 3Y Return (annualized) | - | +14.20% | |
| 5Y Return (annualized) | - | +9.59% | |
| Volatility (annualized) | 0.7% | 13.7% | |
| Max Drawdown | -1.0% | -33.4% | |
| Fund Family | TCW ETFs | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Nov 15, 2024 | Oct 20, 2011 |
ACLO vs SCHD Performance
TCW AAA CLO ETF (ACLO) is a ETF from TCW ETFs and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year ACLO returned +5.15% while SCHD returned +30.94%. Year to date, ACLO is up 2.92% versus a gain of 22.69% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 0.7% for ACLO. 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 -1.0% for ACLO and -33.4% for SCHD. 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 0.23. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ACLO charges 0.20% per year while SCHD charges 0.06%. On a $10,000 position that is $20 vs $6 annually, a gap of $14 per year that compounds over a long holding period. On income, ACLO currently yields 4.89% against 3.31% for SCHD.
Holdings Overlap
ACLO and SCHD share 1 holdings out of 156 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in ACLO | Weight in SCHD | Difference |
|---|---|---|---|
| GVMXX | 0.40% | 0.04% | 0.36% |
Frequently Asked Questions
Which is cheaper, ACLO or SCHD?
ACLO has an expense ratio of 0.20% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, ACLO or SCHD?
Over the past year ACLO returned +5.15% vs +30.94% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), ACLO annualized +5.42% vs +11.31% for SCHD. Past performance does not guarantee future results.
Which is riskier, ACLO or SCHD?
SCHD has been the more volatile fund at 13.7% annualized versus 0.7% for ACLO. Worst drawdown: ACLO -1.0% vs SCHD -33.4%.
Should I hold both ACLO and SCHD?
ACLO and SCHD have a monthly-return correlation of 0.23, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ACLO and SCHD?
ACLO and SCHD share 1 common holdings with a 0.0% weight overlap. Combined, they hold 156 unique securities.
Which pays a higher dividend, ACLO or SCHD?
ACLO yields 4.89% while SCHD yields 3.31%, so ACLO currently pays the higher dividend yield.
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