CLOA vs SCHD
CLOA vs SCHD
iShares AAA CLO Active 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 | CLOA | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.06% | |
| AUM | $2.2B | $103.7B | |
| Dividend Yield | 4.95% | 3.31% | |
| Holdings | 433 | 104 | |
| YTD Return | +2.75% | +22.69% | |
| 1Y Return | +5.19% | +30.94% | |
| 3Y Return (annualized) | +7.75% | +14.20% | |
| 5Y Return (annualized) | - | +9.59% | |
| Volatility (annualized) | 1.2% | 13.7% | |
| Max Drawdown | -1.3% | -33.4% | |
| Fund Family | BlackRock, Inc. (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Jan 10, 2023 | Oct 20, 2011 |
CLOA vs SCHD Performance
iShares AAA CLO Active ETF (CLOA) is a ETF from BlackRock, Inc. (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year CLOA returned +5.19% while SCHD returned +30.94%. Year to date, CLOA is up 2.75% versus a gain of 22.69% for SCHD.
Over three years, CLOA compounded at +7.75% per year against +14.20% for SCHD. Across the full 4-year window we track, SCHD has the edge at +11.31% annualized vs +7.93%. 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 1.2% for CLOA. 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 -1.3% for CLOA 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CLOA 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, CLOA currently yields 4.95% against 3.31% for SCHD.
Holdings Overlap
CLOA and SCHD share 0 holdings out of 140 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, CLOA or SCHD?
CLOA 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, CLOA or SCHD?
Over the past year CLOA returned +5.19% vs +30.94% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), CLOA annualized +7.93% vs +11.31% for SCHD. Past performance does not guarantee future results.
Which is riskier, CLOA or SCHD?
SCHD has been the more volatile fund at 13.7% annualized versus 1.2% for CLOA. Worst drawdown: CLOA -1.3% vs SCHD -33.4%.
Should I hold both CLOA and SCHD?
CLOA and SCHD have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CLOA and SCHD?
CLOA and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 140 unique securities.
Which pays a higher dividend, CLOA or SCHD?
CLOA yields 4.95% while SCHD yields 3.31%, so CLOA currently pays the higher dividend yield.
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