QUAL vs SCHD
QUAL vs SCHD
iShares MSCI USA Quality Factor ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. QUAL offers more diversification with 127 holdings.
Side-by-Side Comparison
| Metric | QUAL | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.06% | |
| AUM | $46.0B | $103.7B | |
| Dividend Yield | 0.86% | 3.31% | |
| Holdings | 130 | 104 | |
| YTD Return | +13.11% | +23.31% | |
| 1Y Return | +23.21% | +30.42% | |
| 3Y Return (annualized) | +18.80% | +14.66% | |
| 5Y Return (annualized) | +11.39% | +9.59% | |
| Volatility (annualized) | 14.7% | 13.6% | |
| Max Drawdown | -34.1% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jul 16, 2013 | Oct 20, 2011 |
QUAL vs SCHD Performance
iShares MSCI USA Quality Factor ETF (QUAL) is a ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year QUAL returned +23.21% while SCHD returned +30.42%. Year to date, QUAL is up 13.11% versus a gain of 23.31% for SCHD.
Over three years, QUAL compounded at +18.80% per year against +14.66% for SCHD; over five years the annualized figures are +11.39% and +9.59% respectively. Across the full 13-year window we track, QUAL has the edge at +12.74% annualized vs +11.34%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QUAL has been the more volatile fund, with annualized monthly volatility of 14.7% 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 -34.1% for QUAL 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QUAL charges 0.15% per year while SCHD charges 0.06%. On a $10,000 position that is $15 vs $6 annually, a gap of $9 per year that compounds over a long holding period. On income, QUAL currently yields 0.86% against 3.31% for SCHD.
Holdings Overlap
QUAL and SCHD share 16 holdings out of 211 unique holdings combined, representing a 6.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in QUAL | Weight in SCHD | Difference |
|---|---|---|---|
| MRK | 1.22% | 4.32% | 3.10% |
| KO | 0.77% | 4.08% | 3.31% |
| PEP | 0.37% | 3.72% | 3.35% |
| ADP | Pro | Pro | Pro |
| LMT | Pro | Pro | Pro |
| 2345:TW | Pro | Pro | Pro |
| EOG | Pro | Pro | Pro |
| SLB | Pro | Pro | Pro |
| FAST | Pro | Pro | Pro |
| DVN | Pro | Pro | Pro |
See all 10 holdings QUAL shares with SCHD Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, QUAL or SCHD?
QUAL has an expense ratio of 0.15% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, QUAL or SCHD?
Over the past year QUAL returned +23.21% vs +30.42% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (13 years), QUAL annualized +12.74% vs +11.34% for SCHD. Past performance does not guarantee future results.
Which is riskier, QUAL or SCHD?
QUAL has been the more volatile fund at 14.7% annualized versus 13.6% for SCHD. Worst drawdown: QUAL -34.1% vs SCHD -33.4%.
Should I hold both QUAL and SCHD?
QUAL and SCHD have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QUAL and SCHD?
QUAL and SCHD share 16 common holdings with a 6.9% weight overlap. Combined, they hold 211 unique securities.
Which pays a higher dividend, QUAL or SCHD?
QUAL yields 0.86% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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