ETY vs SCHD
ETY vs SCHD
Eaton Vance Tax-Managed Diversified Equity Income Fund 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 | ETY | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.06% | 0.06% | |
| AUM | $1.8B | $103.7B | |
| Dividend Yield | 7.63% | 3.31% | |
| Holdings | 61 | 104 | |
| YTD Return | +0.51% | +24.26% | |
| 1Y Return | +0.72% | +31.38% | |
| 3Y Return (annualized) | +14.66% | +15.08% | |
| 5Y Return (annualized) | +8.80% | +9.72% | |
| Volatility (annualized) | 17.2% | 13.6% | |
| Max Drawdown | -64.6% | -33.4% | |
| Fund Family | Eaton Vance | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Nov 27, 2006 | Oct 20, 2011 |
ETY vs SCHD Performance
Eaton Vance Tax-Managed Diversified Equity Income Fund (ETY) is a ETF from Eaton Vance and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year ETY returned +0.72% while SCHD returned +31.38%. Year to date, ETY is up 0.51% versus a gain of 24.26% for SCHD.
Over three years, ETY compounded at +14.66% per year against +15.08% for SCHD; over five years the annualized figures are +8.80% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +0.66%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ETY has been the more volatile fund, with annualized monthly volatility of 17.2% compared with 13.6% 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 -64.6% for ETY 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ETY charges 1.06% per year while SCHD charges 0.06%. On a $10,000 position that is $106 vs $6 annually, a gap of $100 per year that compounds over a long holding period. On income, ETY currently yields 7.63% against 3.31% for SCHD.
Holdings Overlap
ETY and SCHD share 3 holdings out of 146 unique holdings combined, representing a 5.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ETY or SCHD?
ETY has an expense ratio of 1.06% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $100 per year of difference.
Which performed better, ETY or SCHD?
Over the past year ETY returned +0.72% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), ETY annualized +0.66% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, ETY or SCHD?
ETY has been the more volatile fund at 17.2% annualized versus 13.6% for SCHD. Worst drawdown: ETY -64.6% vs SCHD -33.4%.
Should I hold both ETY and SCHD?
ETY and SCHD have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ETY and SCHD?
ETY and SCHD share 3 common holdings with a 5.7% weight overlap. Combined, they hold 146 unique securities.
Which pays a higher dividend, ETY or SCHD?
ETY yields 7.63% while SCHD yields 3.31%, so ETY currently pays the higher dividend yield.
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