PHYL vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. PHYL offers more diversification with 616 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: PHYL

Side-by-Side Comparison

MetricPHYLSCHDWinner
Expense Ratio0.39%0.06%
AUM$1.4B$103.7B
Dividend Yield8.24%3.31%
Holdings804104
YTD Return+1.71%+23.02%
1Y Return+4.91%+30.75%
3Y Return (annualized)+8.40%+14.89%
5Y Return (annualized)+3.82%+9.38%
Volatility (annualized)8.7%13.6%
Max Drawdown-23.5%-33.4%
Fund FamilyPGIM InvestmentsCharles Schwab Asset Management
CategoryFixed IncomeEquity
InceptionSep 24, 2018Oct 20, 2011

PHYL vs SCHD Performance

PGIM Active High Yield Bond ETF (PHYL) is a ETF from PGIM Investments and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PHYL returned +4.91% while SCHD returned +30.75%. Year to date, PHYL is up 1.71% versus a gain of 23.02% for SCHD.

Over three years, PHYL compounded at +8.40% per year against +14.89% for SCHD; over five years the annualized figures are +3.82% and +9.38% respectively. Across the full 8-year window we track, SCHD has the edge at +11.33% annualized vs +3.02%. 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 8.7% for PHYL. 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 -23.5% for PHYL 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 0.73. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

PHYL charges 0.39% per year while SCHD charges 0.06%. On a $10,000 position that is $39 vs $6 annually, a gap of $33 per year that compounds over a long holding period. On income, PHYL currently yields 8.24% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

PHYL and SCHD share 0 holdings out of 716 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, PHYL or SCHD?

PHYL has an expense ratio of 0.39% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $33 per year of difference.

Which performed better, PHYL or SCHD?

Over the past year PHYL returned +4.91% vs +30.75% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (8 years), PHYL annualized +3.02% vs +11.33% for SCHD. Past performance does not guarantee future results.

Which is riskier, PHYL or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 8.7% for PHYL. Worst drawdown: PHYL -23.5% vs SCHD -33.4%.

Should I hold both PHYL and SCHD?

PHYL and SCHD have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PHYL and SCHD?

PHYL and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 716 unique securities.

Which pays a higher dividend, PHYL or SCHD?

PHYL yields 8.24% while SCHD yields 3.31%, so PHYL currently pays the higher dividend yield.

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