HYS vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. HYS offers more diversification with 657 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: HYS

Side-by-Side Comparison

MetricHYSSCHDWinner
Expense Ratio0.56%0.06%
AUM$1.7B$103.7B
Dividend Yield7.31%3.31%
Holdings826104
YTD Return+1.31%+22.69%
1Y Return+5.18%+30.94%
3Y Return (annualized)+8.13%+14.20%
5Y Return (annualized)+5.06%+9.59%
Volatility (annualized)6.1%13.7%
Max Drawdown-26.6%-33.4%
Fund FamilyPIMCO (US)Charles Schwab Asset Management
CategoryFixed IncomeEquity
InceptionJun 16, 2011Oct 20, 2011

HYS vs SCHD Performance

PIMCO 0-5 Year High Yield Corporate Bond Index Exchange-Traded Fund (HYS) is a ETF from PIMCO (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year HYS returned +5.18% while SCHD returned +30.94%. Year to date, HYS is up 1.31% versus a gain of 22.69% for SCHD.

Over three years, HYS compounded at +8.13% per year against +14.20% for SCHD; over five years the annualized figures are +5.06% and +9.59% respectively. Across the full 15-year window we track, SCHD has the edge at +11.31% annualized vs +1.70%. 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 6.1% for HYS. 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 -26.6% for HYS 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 0.71. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

HYS charges 0.56% per year while SCHD charges 0.06%. On a $10,000 position that is $56 vs $6 annually, a gap of $50 per year that compounds over a long holding period. On income, HYS currently yields 7.31% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

HYS and SCHD share 0 holdings out of 757 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, HYS or SCHD?

HYS has an expense ratio of 0.56% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $50 per year of difference.

Which performed better, HYS or SCHD?

Over the past year HYS returned +5.18% vs +30.94% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), HYS annualized +1.70% vs +11.31% for SCHD. Past performance does not guarantee future results.

Which is riskier, HYS or SCHD?

SCHD has been the more volatile fund at 13.7% annualized versus 6.1% for HYS. Worst drawdown: HYS -26.6% vs SCHD -33.4%.

Should I hold both HYS and SCHD?

HYS and SCHD have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HYS and SCHD?

HYS and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 757 unique securities.

Which pays a higher dividend, HYS or SCHD?

HYS yields 7.31% while SCHD yields 3.31%, so HYS currently pays the higher dividend yield.

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