SCHD vs SHAG
SCHD vs SHAG
Schwab US Dividend Equity ETF vs Wisdomtree Yield Enhanced US Short-Term Aggregate Bond Fund
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SHAG offers more diversification with 1024 holdings.
Side-by-Side Comparison
| Metric | SCHD | SHAG | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.12% | |
| AUM | $103.7B | $47M | |
| Dividend Yield | 3.31% | 4.31% | |
| Holdings | 104 | 1,122 | |
| YTD Return | +24.26% | -1.60% | |
| 1Y Return | +31.38% | +0.05% | |
| 3Y Return (annualized) | +15.08% | +3.76% | |
| 5Y Return (annualized) | +9.72% | +1.07% | |
| Volatility (annualized) | 13.6% | 2.6% | |
| Max Drawdown | -33.4% | -9.6% | |
| Fund Family | Charles Schwab Asset Management | WisdomTree Investments | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | May 18, 2017 |
SCHD vs SHAG Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Wisdomtree Yield Enhanced US Short-Term Aggregate Bond Fund (SHAG) is a ETF from WisdomTree Investments. Over the past year SCHD returned +31.38% while SHAG returned +0.05%. Year to date, SCHD is up 24.26% versus a loss of 1.60% for SHAG.
Over three years, SCHD compounded at +15.08% per year against +3.76% for SHAG; over five years the annualized figures are +9.72% and +1.07% respectively. Across the full 9-year window we track, SCHD has the edge at +11.39% annualized vs +1.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 2.6% for SHAG. 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 -9.6% for SHAG. 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SHAG charges 0.12%. On a $10,000 position that is $6 vs $12 annually, a gap of $6 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 4.31% for SHAG.
Holdings Overlap
SCHD and SHAG share 0 holdings out of 1124 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 SHAG?
SCHD has an expense ratio of 0.06% while SHAG charges 0.12%. SCHD is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SCHD or SHAG?
Over the past year SCHD returned +31.38% vs +0.05% for SHAG, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), SCHD annualized +11.39% vs +1.85% for SHAG. Past performance does not guarantee future results.
Which is riskier, SCHD or SHAG?
SCHD has been the more volatile fund at 13.6% annualized versus 2.6% for SHAG. Worst drawdown: SCHD -33.4% vs SHAG -9.6%.
Should I hold both SCHD and SHAG?
SCHD and SHAG have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SHAG?
SCHD and SHAG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1124 unique securities.
Which pays a higher dividend, SCHD or SHAG?
SCHD yields 3.31% while SHAG yields 4.31%, so SHAG currently pays the higher dividend yield.
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