RAA vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. RAA offers more diversification with 180 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: RAA

Side-by-Side Comparison

MetricRAASCHDWinner
Expense Ratio0.85%0.06%
AUM$594M$103.7B
Dividend Yield2.13%3.31%
Holdings182104
YTD Return+8.37%+24.08%
1Y Return+16.81%+31.88%
3Y Return (annualized)+14.67%+14.92%
5Y Return (annualized)+14.67%+9.85%
Volatility (annualized)23.4%13.6%
Max Drawdown-53.8%-33.4%
Fund Family3FourteenSMICharles Schwab Asset Management
CategoryEquityEquity
InceptionFeb 26, 2025Oct 20, 2011

RAA vs SCHD Performance

SMI 3Fourteen REAL Asset Allocation ETF (RAA) is a ETF from 3FourteenSMI and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year RAA returned +16.81% while SCHD returned +31.88%. Year to date, RAA is up 8.37% versus a gain of 24.08% for SCHD.

Over three years, RAA compounded at +14.67% per year against +14.92% for SCHD; over five years the annualized figures are +14.67% and +9.85% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +7.22%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

RAA has been the more volatile fund, with annualized monthly volatility of 23.4% 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 -53.8% for RAA 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 0.14. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

RAA charges 0.85% per year while SCHD charges 0.06%. On a $10,000 position that is $85 vs $6 annually, a gap of $79 per year that compounds over a long holding period. On income, RAA currently yields 2.13% against 3.31% for SCHD.

Holdings Overlap

3.4%overlap

RAA and SCHD share 14 holdings out of 266 unique holdings combined, representing a 3.4% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in RAAWeight in SCHDDifference
CVX0.65%3.95%3.30%
AMGN0.19%4.25%4.06%
PEP0.21%3.72%3.51%
TXNProProPro
ADPProProPro
QCOMProProPro
CMCSAProProPro
SLBProProPro
TGTProProPro
FASTProProPro
See all 10 holdings RAA shares with SCHD
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Frequently Asked Questions

Which is cheaper, RAA or SCHD?

RAA has an expense ratio of 0.85% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $79 per year of difference.

Which performed better, RAA or SCHD?

Over the past year RAA returned +16.81% vs +31.88% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), RAA annualized +7.22% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, RAA or SCHD?

RAA has been the more volatile fund at 23.4% annualized versus 13.6% for SCHD. Worst drawdown: RAA -53.8% vs SCHD -33.4%.

Should I hold both RAA and SCHD?

RAA and SCHD have a monthly-return correlation of 0.14, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between RAA and SCHD?

RAA and SCHD share 14 common holdings with a 3.4% weight overlap. Combined, they hold 266 unique securities.

Which pays a higher dividend, RAA or SCHD?

RAA yields 2.13% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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