SCHD vs SDFI
SCHD vs SDFI
Schwab US Dividend Equity ETF vs AB Short Duration Income ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SDFI offers more diversification with 341 holdings.
Side-by-Side Comparison
| Metric | SCHD | SDFI | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.30% | |
| AUM | $103.7B | $185M | |
| Dividend Yield | 3.31% | 4.54% | |
| Holdings | 104 | 552 | |
| YTD Return | +23.02% | +0.85% | |
| 1Y Return | +30.75% | +2.95% | |
| 3Y Return (annualized) | +14.89% | - | |
| 5Y Return (annualized) | +9.38% | - | |
| Volatility (annualized) | 13.6% | 1.8% | |
| Max Drawdown | -33.4% | -1.2% | |
| Fund Family | Charles Schwab Asset Management | AllianceBernstein L.P. | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Jun 10, 2024 |
SCHD vs SDFI Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and AB Short Duration Income ETF (SDFI) is a ETF from AllianceBernstein L.P.. Over the past year SCHD returned +30.75% while SDFI returned +2.95%. Year to date, SCHD is up 23.02% versus a gain of 0.85% for SDFI.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 1.8% for SDFI. 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 -33.4% for SCHD and -1.2% for SDFI. 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SDFI charges 0.30%. On a $10,000 position that is $6 vs $30 annually, a gap of $24 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 4.54% for SDFI.
Holdings Overlap
SCHD and SDFI share 0 holdings out of 441 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, SCHD or SDFI?
SCHD has an expense ratio of 0.06% while SDFI charges 0.30%. SCHD is the cheaper option. On a $10,000 investment, that is $24 per year of difference.
Which performed better, SCHD or SDFI?
Over the past year SCHD returned +30.75% vs +2.95% for SDFI, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), SCHD annualized +11.33% vs +4.92% for SDFI. Past performance does not guarantee future results.
Which is riskier, SCHD or SDFI?
SCHD has been the more volatile fund at 13.6% annualized versus 1.8% for SDFI. Worst drawdown: SCHD -33.4% vs SDFI -1.2%.
Should I hold both SCHD and SDFI?
SCHD and SDFI have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SDFI?
SCHD and SDFI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 441 unique securities.
Which pays a higher dividend, SCHD or SDFI?
SCHD yields 3.31% while SDFI yields 4.54%, so SDFI currently pays the higher dividend yield.
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