PSF vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. PSF offers more diversification with 187 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: PSF

Side-by-Side Comparison

MetricPSFSCHDWinner
Expense Ratio1.59%0.06%
AUM$2,687.94$103.7B
Dividend Yield6.91%3.31%
Holdings332104
YTD Return+0.36%+24.08%
1Y Return+2.27%+31.88%
3Y Return (annualized)+9.30%+14.92%
5Y Return (annualized)-1.74%+9.85%
Volatility (annualized)16.6%13.6%
Max Drawdown-55.4%-33.4%
Fund FamilyCohen & Steers FundsCharles Schwab Asset Management
CategoryAllocation/BalancedEquity
InceptionNov 24, 2010Oct 20, 2011

PSF vs SCHD Performance

Cohen & Steers Select Preferred and Income Fund Inc. (PSF) is a ETF from Cohen & Steers Funds and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PSF returned +2.27% while SCHD returned +31.88%. Year to date, PSF is up 0.36% versus a gain of 24.08% for SCHD.

Over three years, PSF compounded at +9.30% per year against +14.92% for SCHD; over five years the annualized figures are -1.74% and +9.85% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +1.20%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PSF 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 -55.4% for PSF 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

PSF charges 1.59% per year while SCHD charges 0.06%. On a $10,000 position that is $159 vs $6 annually, a gap of $153 per year that compounds over a long holding period. On income, PSF currently yields 6.91% against 3.31% for SCHD.

Holdings Overlap

0.9%overlap

PSF and SCHD share 2 holdings out of 285 unique holdings combined, representing a 0.9% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PSFWeight in SCHDDifference
FITB0.82%1.35%0.53%
GVMXX0.61%0.04%0.57%

Frequently Asked Questions

Which is cheaper, PSF or SCHD?

PSF has an expense ratio of 1.59% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $153 per year of difference.

Which performed better, PSF or SCHD?

Over the past year PSF returned +2.27% vs +31.88% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), PSF annualized +1.20% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, PSF or SCHD?

PSF has been the more volatile fund at 16.6% annualized versus 13.6% for SCHD. Worst drawdown: PSF -55.4% vs SCHD -33.4%.

Should I hold both PSF and SCHD?

PSF 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 PSF and SCHD?

PSF and SCHD share 2 common holdings with a 0.9% weight overlap. Combined, they hold 285 unique securities.

Which pays a higher dividend, PSF or SCHD?

PSF yields 6.91% while SCHD yields 3.31%, so PSF currently pays the higher dividend yield.

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