SCHD vs SDHY
SCHD vs SDHY
Schwab US Dividend Equity ETF vs PGIM Short Duration High Yield Opportunities Fund
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SDHY offers more diversification with 456 holdings.
Side-by-Side Comparison
| Metric | SCHD | SDHY | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 1.90% | |
| AUM | $103.7B | $441M | |
| Dividend Yield | 3.31% | 7.47% | |
| Holdings | 104 | 572 | |
| YTD Return | +22.69% | +1.94% | |
| 1Y Return | +30.94% | +4.65% | |
| 3Y Return (annualized) | +14.20% | +10.67% | |
| 5Y Return (annualized) | +9.59% | +4.71% | |
| Volatility (annualized) | 13.7% | 10.1% | |
| Max Drawdown | -33.4% | -23.1% | |
| Fund Family | Charles Schwab Asset Management | PGIM Investments | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Nov 25, 2020 |
SCHD vs SDHY Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and PGIM Short Duration High Yield Opportunities Fund (SDHY) is a ETF from PGIM Investments. Over the past year SCHD returned +30.94% while SDHY returned +4.65%. Year to date, SCHD is up 22.69% versus a gain of 1.94% for SDHY.
Over three years, SCHD compounded at +14.20% per year against +10.67% for SDHY; over five years the annualized figures are +9.59% and +4.71% respectively. Across the full 6-year window we track, SCHD has the edge at +11.31% annualized vs +4.05%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 10.1% for SDHY. 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 -23.1% for SDHY. 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SDHY charges 1.90%. On a $10,000 position that is $6 vs $190 annually, a gap of $184 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 7.47% for SDHY.
Holdings Overlap
SCHD and SDHY share 0 holdings out of 556 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 SDHY?
SCHD has an expense ratio of 0.06% while SDHY charges 1.90%. SCHD is the cheaper option. On a $10,000 investment, that is $184 per year of difference.
Which performed better, SCHD or SDHY?
Over the past year SCHD returned +30.94% vs +4.65% for SDHY, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), SCHD annualized +11.31% vs +4.05% for SDHY. Past performance does not guarantee future results.
Which is riskier, SCHD or SDHY?
SCHD has been the more volatile fund at 13.7% annualized versus 10.1% for SDHY. Worst drawdown: SCHD -33.4% vs SDHY -23.1%.
Should I hold both SCHD and SDHY?
SCHD and SDHY have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SDHY?
SCHD and SDHY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 556 unique securities.
Which pays a higher dividend, SCHD or SDHY?
SCHD yields 3.31% while SDHY yields 7.47%, so SDHY currently pays the higher dividend yield.
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