PFM vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. PFM offers more diversification with 430 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: PFM

Side-by-Side Comparison

MetricPFMSCHDWinner
Expense Ratio0.52%0.06%
AUM$792M$103.7B
Dividend Yield1.34%3.31%
Holdings433104
YTD Return+12.00%+23.53%
1Y Return+19.61%+30.95%
3Y Return (annualized)+15.98%+14.72%
5Y Return (annualized)+10.92%+9.56%
Volatility (annualized)13.4%13.6%
Max Drawdown-54.7%-33.4%
Fund FamilyInvesco (US)Charles Schwab Asset Management
CategoryEquityEquity
InceptionSep 15, 2005Oct 20, 2011

PFM vs SCHD Performance

Invesco Dividend Achievers ETF (PFM) is a ETF from Invesco (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PFM returned +19.61% while SCHD returned +30.95%. Year to date, PFM is up 12.00% versus a gain of 23.53% for SCHD.

Over three years, PFM compounded at +15.98% per year against +14.72% for SCHD; over five years the annualized figures are +10.92% and +9.56% respectively. Across the full 15-year window we track, SCHD has the edge at +11.35% annualized vs +7.19%. 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 13.4% for PFM. 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 -54.7% for PFM 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 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

PFM charges 0.52% per year while SCHD charges 0.06%. On a $10,000 position that is $52 vs $6 annually, a gap of $46 per year that compounds over a long holding period. On income, PFM currently yields 1.34% against 3.31% for SCHD.

Holdings Overlap

16.6%overlap

PFM and SCHD share 58 holdings out of 472 unique holdings combined, representing a 16.6% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PFMWeight in SCHDDifference
UNH1.40%4.54%3.14%
MRK1.18%4.32%3.14%
HD1.28%4.16%2.88%
PGProProPro
KOProProPro
CVXProProPro
ABTProProPro
AMGNProProPro
TXNProProPro
PEPProProPro
See all 10 holdings PFM 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, PFM or SCHD?

PFM has an expense ratio of 0.52% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $46 per year of difference.

Which performed better, PFM or SCHD?

Over the past year PFM returned +19.61% vs +30.95% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), PFM annualized +7.19% vs +11.35% for SCHD. Past performance does not guarantee future results.

Which is riskier, PFM or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 13.4% for PFM. Worst drawdown: PFM -54.7% vs SCHD -33.4%.

Should I hold both PFM and SCHD?

PFM and SCHD have a monthly-return correlation of 0.93, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between PFM and SCHD?

PFM and SCHD share 58 common holdings with a 16.6% weight overlap. Combined, they hold 472 unique securities.

Which pays a higher dividend, PFM or SCHD?

PFM yields 1.34% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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