PSQO vs SCHD
PSQO vs SCHD
Palmer Square Credit Opportunities ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. PSQO offers more diversification with 198 holdings.
Side-by-Side Comparison
| Metric | PSQO | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.52% | 0.06% | |
| AUM | $271M | $103.7B | |
| Dividend Yield | 4.41% | 3.31% | |
| Holdings | 359 | 104 | |
| YTD Return | +2.44% | +23.02% | |
| 1Y Return | +5.32% | +30.75% | |
| 3Y Return (annualized) | - | +14.89% | |
| 5Y Return (annualized) | - | +9.38% | |
| Volatility (annualized) | 1.1% | 13.6% | |
| Max Drawdown | -0.8% | -33.4% | |
| Fund Family | Palmer Square Capital Management | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 11, 2024 | Oct 20, 2011 |
PSQO vs SCHD Performance
Palmer Square Credit Opportunities ETF (PSQO) is a ETF from Palmer Square Capital Management and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PSQO returned +5.32% while SCHD returned +30.75%. Year to date, PSQO is up 2.44% versus a gain of 23.02% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 1.1% for PSQO. 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 -0.8% for PSQO 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 0.21. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PSQO 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, PSQO currently yields 4.41% against 3.31% for SCHD.
Holdings Overlap
PSQO and SCHD share 0 holdings out of 298 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, PSQO or SCHD?
PSQO 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, PSQO or SCHD?
Over the past year PSQO returned +5.32% vs +30.75% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), PSQO annualized +6.09% vs +11.33% for SCHD. Past performance does not guarantee future results.
Which is riskier, PSQO or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 1.1% for PSQO. Worst drawdown: PSQO -0.8% vs SCHD -33.4%.
Should I hold both PSQO and SCHD?
PSQO and SCHD have a monthly-return correlation of 0.21, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSQO and SCHD?
PSQO and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 298 unique securities.
Which pays a higher dividend, PSQO or SCHD?
PSQO yields 4.41% while SCHD yields 3.31%, so PSQO currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.