HDG vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. HDG offers more diversification with 1963 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: HDG

Side-by-Side Comparison

MetricHDGSCHDWinner
Expense Ratio0.95%0.06%
AUM$22M$103.7B
Dividend Yield2.36%3.31%
Holdings1,988104
YTD Return+7.27%+24.08%
1Y Return+12.72%+31.88%
3Y Return (annualized)+7.03%+14.92%
5Y Return (annualized)+3.31%+9.85%
Volatility (annualized)5.7%13.6%
Max Drawdown-15.3%-33.4%
Fund FamilyProSharesCharles Schwab Asset Management
CategoryAlternativeEquity
InceptionJul 12, 2011Oct 20, 2011

HDG vs SCHD Performance

ProShares Hedge Replication ETF (HDG) is a ETF from ProShares and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year HDG returned +12.72% while SCHD returned +31.88%. Year to date, HDG is up 7.27% versus a gain of 24.08% for SCHD.

Over three years, HDG compounded at +7.03% per year against +14.92% for SCHD; over five years the annualized figures are +3.31% and +9.85% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +2.79%. 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 5.7% for HDG. 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 -15.3% for HDG 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 0.78. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

HDG charges 0.95% per year while SCHD charges 0.06%. On a $10,000 position that is $95 vs $6 annually, a gap of $89 per year that compounds over a long holding period. On income, HDG currently yields 2.36% against 3.31% for SCHD.

Holdings Overlap

0.3%overlap

HDG and SCHD share 33 holdings out of 2030 unique holdings combined, representing a 0.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in HDGWeight in SCHDDifference
MUR0.02%0.13%0.11%
MC0.02%0.13%0.11%
CVBF0.02%0.10%0.08%
KFYProProPro
APAMProProPro
CNSProProPro
LANCProProPro
IPARProProPro
OFG:PRProProPro
BANRProProPro
See all 10 holdings HDG shares with SCHD
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, HDG or SCHD?

HDG has an expense ratio of 0.95% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $89 per year of difference.

Which performed better, HDG or SCHD?

Over the past year HDG returned +12.72% vs +31.88% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), HDG annualized +2.79% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, HDG or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 5.7% for HDG. Worst drawdown: HDG -15.3% vs SCHD -33.4%.

Should I hold both HDG and SCHD?

HDG and SCHD have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HDG and SCHD?

HDG and SCHD share 33 common holdings with a 0.3% weight overlap. Combined, they hold 2030 unique securities.

Which pays a higher dividend, HDG or SCHD?

HDG yields 2.36% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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