HAPI vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. HAPI offers more diversification with 156 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: HAPI

Side-by-Side Comparison

MetricHAPISCHDWinner
Expense Ratio0.35%0.06%
AUM$484M$103.7B
Dividend Yield0.80%3.31%
Holdings155104
YTD Return+12.81%+24.08%
1Y Return+20.30%+31.88%
3Y Return (annualized)+21.37%+14.92%
5Y Return (annualized)-+9.85%
Volatility (annualized)12.7%13.6%
Max Drawdown-19.5%-33.4%
Fund FamilyHarbor FundsCharles Schwab Asset Management
CategoryEquityEquity
InceptionOct 12, 2022Oct 20, 2011

HAPI vs SCHD Performance

Harbor Human Capital Factor US Large Cap ETF (HAPI) is a ETF from Harbor Funds and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year HAPI returned +20.30% while SCHD returned +31.88%. Year to date, HAPI is up 12.81% versus a gain of 24.08% for SCHD.

Over three years, HAPI compounded at +21.37% per year against +14.92% for SCHD. Across the full 4-year window we track, HAPI has the edge at +24.69% annualized vs +11.39%. 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 12.7% for HAPI. 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 -19.5% for HAPI 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

HAPI charges 0.35% per year while SCHD charges 0.06%. On a $10,000 position that is $35 vs $6 annually, a gap of $29 per year that compounds over a long holding period. On income, HAPI currently yields 0.80% against 3.31% for SCHD.

Holdings Overlap

9.0%overlap

HAPI and SCHD share 16 holdings out of 240 unique holdings combined, representing a 9.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in HAPIWeight in SCHDDifference
CVX2.00%3.95%1.95%
PG1.41%4.15%2.74%
MRK0.75%4.32%3.57%
AMGNProProPro
VZProProPro
MOProProPro
ADPProProPro
LMTProProPro
BXProProPro
SLBProProPro
See all 10 holdings HAPI shares with SCHD
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Frequently Asked Questions

Which is cheaper, HAPI or SCHD?

HAPI has an expense ratio of 0.35% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $29 per year of difference.

Which performed better, HAPI or SCHD?

Over the past year HAPI returned +20.30% vs +31.88% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), HAPI annualized +24.69% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, HAPI or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 12.7% for HAPI. Worst drawdown: HAPI -19.5% vs SCHD -33.4%.

Should I hold both HAPI and SCHD?

HAPI and SCHD have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HAPI and SCHD?

HAPI and SCHD share 16 common holdings with a 9.0% weight overlap. Combined, they hold 240 unique securities.

Which pays a higher dividend, HAPI or SCHD?

HAPI yields 0.80% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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