PABU vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricPABUSCHDWinner
Expense Ratio0.10%0.06%
AUM$2.4B$103.7B
Dividend Yield0.93%3.31%
Holdings97104
YTD Return+9.36%+24.26%
1Y Return+16.89%+31.38%
3Y Return (annualized)+18.23%+15.08%
5Y Return (annualized)-+9.72%
Volatility (annualized)16.6%13.6%
Max Drawdown-20.8%-33.4%
Fund FamilyiShares by BlackRock (US)Charles Schwab Asset Management
CategoryEquityEquity
InceptionFeb 8, 2022Oct 20, 2011

PABU vs SCHD Performance

iShares Paris-Aligned Climate Optimized MSCI USA ETF (PABU) is a ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PABU returned +16.89% while SCHD returned +31.38%. Year to date, PABU is up 9.36% versus a gain of 24.26% for SCHD.

Over three years, PABU compounded at +18.23% per year against +15.08% for SCHD. Across the full 4-year window we track, PABU has the edge at +12.97% annualized vs +11.39%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PABU has been the more volatile fund, with annualized monthly volatility of 16.6% 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 -20.8% for PABU 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PABU charges 0.10% per year while SCHD charges 0.06%. On a $10,000 position that is $10 vs $6 annually, a gap of $4 per year that compounds over a long holding period. On income, PABU currently yields 0.93% against 3.31% for SCHD.

Holdings Overlap

1.0%overlap

PABU and SCHD share 3 holdings out of 190 unique holdings combined, representing a 1.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PABUWeight in SCHDDifference
TXN0.82%3.70%2.88%
PAYX0.15%0.93%0.78%
ERIE0.05%0.14%0.09%

Frequently Asked Questions

Which is cheaper, PABU or SCHD?

PABU has an expense ratio of 0.10% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $4 per year of difference.

Which performed better, PABU or SCHD?

Over the past year PABU returned +16.89% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), PABU annualized +12.97% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, PABU or SCHD?

PABU has been the more volatile fund at 16.6% annualized versus 13.6% for SCHD. Worst drawdown: PABU -20.8% vs SCHD -33.4%.

Should I hold both PABU and SCHD?

PABU and SCHD have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PABU and SCHD?

PABU and SCHD share 3 common holdings with a 1.0% weight overlap. Combined, they hold 190 unique securities.

Which pays a higher dividend, PABU or SCHD?

PABU yields 0.93% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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