CGSD vs SCHD
CGSD vs SCHD
Capital Group Short Duration Income ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. CGSD offers more diversification with 502 holdings.
Side-by-Side Comparison
| Metric | CGSD | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.06% | |
| AUM | $2.4B | $103.7B | |
| Dividend Yield | 4.46% | 3.31% | |
| Holdings | 1,035 | 104 | |
| YTD Return | +1.26% | +23.53% | |
| 1Y Return | +3.34% | +30.95% | |
| 3Y Return (annualized) | +5.23% | +14.72% | |
| 5Y Return (annualized) | - | +9.56% | |
| Volatility (annualized) | 1.9% | 13.6% | |
| Max Drawdown | -1.8% | -33.4% | |
| Fund Family | Capital Group (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Oct 25, 2022 | Oct 20, 2011 |
CGSD vs SCHD Performance
Capital Group Short Duration Income ETF (CGSD) is a ETF from Capital Group (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year CGSD returned +3.34% while SCHD returned +30.95%. Year to date, CGSD is up 1.26% versus a gain of 23.53% for SCHD.
Over three years, CGSD compounded at +5.23% per year against +14.72% for SCHD. Across the full 4-year window we track, SCHD has the edge at +11.35% annualized vs +5.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 1.9% for CGSD. 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 -1.8% for CGSD 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CGSD charges 0.25% per year while SCHD charges 0.06%. On a $10,000 position that is $25 vs $6 annually, a gap of $19 per year that compounds over a long holding period. On income, CGSD currently yields 4.46% against 3.31% for SCHD.
Holdings Overlap
CGSD and SCHD share 0 holdings out of 602 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, CGSD or SCHD?
CGSD has an expense ratio of 0.25% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, CGSD or SCHD?
Over the past year CGSD returned +3.34% vs +30.95% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), CGSD annualized +5.06% vs +11.35% for SCHD. Past performance does not guarantee future results.
Which is riskier, CGSD or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 1.9% for CGSD. Worst drawdown: CGSD -1.8% vs SCHD -33.4%.
Should I hold both CGSD and SCHD?
CGSD and SCHD have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGSD and SCHD?
CGSD and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 602 unique securities.
Which pays a higher dividend, CGSD or SCHD?
CGSD yields 4.46% while SCHD yields 3.31%, so CGSD currently pays the higher dividend yield.
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