PHEQ vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. PHEQ offers more diversification with 173 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: PHEQ

Side-by-Side Comparison

MetricPHEQSCHDWinner
Expense Ratio0.29%0.06%
AUM$137M$103.7B
Dividend Yield0.94%3.31%
Holdings186104
YTD Return+6.93%+23.31%
1Y Return+13.44%+30.42%
3Y Return (annualized)-+14.66%
5Y Return (annualized)-+9.59%
Volatility (annualized)6.8%13.6%
Max Drawdown-12.6%-33.4%
Fund FamilyParametricCharles Schwab Asset Management
CategoryEquityEquity
InceptionOct 16, 2023Oct 20, 2011

PHEQ vs SCHD Performance

Parametric Hedged Equity ETF (PHEQ) is a ETF from Parametric and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PHEQ returned +13.44% while SCHD returned +30.42%. Year to date, PHEQ is up 6.93% versus a gain of 23.31% for SCHD.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 6.8% for PHEQ. 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 -12.6% for PHEQ 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PHEQ charges 0.29% per year while SCHD charges 0.06%. On a $10,000 position that is $29 vs $6 annually, a gap of $23 per year that compounds over a long holding period. On income, PHEQ currently yields 0.94% against 3.31% for SCHD.

Holdings Overlap

9.1%overlap

PHEQ and SCHD share 18 holdings out of 255 unique holdings combined, representing a 9.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PHEQWeight in SCHDDifference
UNH0.81%4.54%3.73%
MRK0.77%4.32%3.55%
PG0.77%4.15%3.38%
KOProProPro
HDProProPro
CVXProProPro
AMGNProProPro
PEPProProPro
TXNProProPro
QCOMProProPro
See all 10 holdings PHEQ shares with SCHD
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Frequently Asked Questions

Which is cheaper, PHEQ or SCHD?

PHEQ has an expense ratio of 0.29% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $23 per year of difference.

Which performed better, PHEQ or SCHD?

Over the past year PHEQ returned +13.44% vs +30.42% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), PHEQ annualized +15.00% vs +11.34% for SCHD. Past performance does not guarantee future results.

Which is riskier, PHEQ or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 6.8% for PHEQ. Worst drawdown: PHEQ -12.6% vs SCHD -33.4%.

Should I hold both PHEQ and SCHD?

PHEQ and SCHD have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PHEQ and SCHD?

PHEQ and SCHD share 18 common holdings with a 9.1% weight overlap. Combined, they hold 255 unique securities.

Which pays a higher dividend, PHEQ or SCHD?

PHEQ yields 0.94% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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