HYDW vs SCHD
HYDW vs SCHD
Xtrackers Low Beta High Yield Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. HYDW offers more diversification with 516 holdings.
Side-by-Side Comparison
| Metric | HYDW | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.06% | |
| AUM | $67M | $103.7B | |
| Dividend Yield | 5.73% | 3.31% | |
| Holdings | 586 | 104 | |
| YTD Return | +1.40% | +24.08% | |
| 1Y Return | +4.35% | +31.88% | |
| 3Y Return (annualized) | +6.97% | +14.92% | |
| 5Y Return (annualized) | +3.45% | +9.85% | |
| Volatility (annualized) | 6.6% | 13.6% | |
| Max Drawdown | -18.1% | -33.4% | |
| Fund Family | Xtrackers ETFs | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Jan 11, 2018 | Oct 20, 2011 |
HYDW vs SCHD Performance
Xtrackers Low Beta High Yield Bond ETF (HYDW) is a ETF from Xtrackers ETFs and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year HYDW returned +4.35% while SCHD returned +31.88%. Year to date, HYDW is up 1.40% versus a gain of 24.08% for SCHD.
Over three years, HYDW compounded at +6.97% per year against +14.92% for SCHD; over five years the annualized figures are +3.45% and +9.85% respectively. Across the full 9-year window we track, SCHD has the edge at +11.39% annualized vs +2.37%. 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 6.6% for HYDW. 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 -18.1% for HYDW 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HYDW 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, HYDW currently yields 5.73% against 3.31% for SCHD.
Holdings Overlap
HYDW and SCHD share 0 holdings out of 616 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, HYDW or SCHD?
HYDW 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, HYDW or SCHD?
Over the past year HYDW returned +4.35% vs +31.88% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), HYDW annualized +2.37% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, HYDW or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 6.6% for HYDW. Worst drawdown: HYDW -18.1% vs SCHD -33.4%.
Should I hold both HYDW and SCHD?
HYDW and SCHD have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYDW and SCHD?
HYDW and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 616 unique securities.
Which pays a higher dividend, HYDW or SCHD?
HYDW yields 5.73% while SCHD yields 3.31%, so HYDW currently pays the higher dividend yield.
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