SCHD vs SHYL

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SHYL offers more diversification with 737 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SHYL

Side-by-Side Comparison

MetricSCHDSHYLWinner
Expense Ratio0.06%0.20%
AUM$103.7B$271M
Dividend Yield3.31%6.91%
Holdings104838
YTD Return+23.31%+1.24%
1Y Return+30.42%+3.99%
3Y Return (annualized)+14.66%+7.78%
5Y Return (annualized)+9.59%+4.84%
Volatility (annualized)13.6%6.4%
Max Drawdown-33.4%-21.6%
Fund FamilyCharles Schwab Asset ManagementXtrackers ETFs
CategoryEquityFixed Income
InceptionOct 20, 2011Jan 9, 2018

SCHD vs SHYL Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Xtrackers Short Duration High Yield Bond ETF (SHYL) is a ETF from Xtrackers ETFs. Over the past year SCHD returned +30.42% while SHYL returned +3.99%. Year to date, SCHD is up 23.31% versus a gain of 1.24% for SHYL.

Over three years, SCHD compounded at +14.66% per year against +7.78% for SHYL; over five years the annualized figures are +9.59% and +4.84% respectively. Across the full 9-year window we track, SCHD has the edge at +11.34% annualized vs +2.52%. 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 6.4% for SHYL. 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 -21.6% for SHYL. 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 0.72. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

SCHD charges 0.06% per year while SHYL charges 0.20%. On a $10,000 position that is $6 vs $20 annually, a gap of $14 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 6.91% for SHYL.

Holdings Overlap

0.0%overlap

SCHD and SHYL share 0 holdings out of 837 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 SHYL?

SCHD has an expense ratio of 0.06% while SHYL charges 0.20%. SCHD is the cheaper option. On a $10,000 investment, that is $14 per year of difference.

Which performed better, SCHD or SHYL?

Over the past year SCHD returned +30.42% vs +3.99% for SHYL, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), SCHD annualized +11.34% vs +2.52% for SHYL. Past performance does not guarantee future results.

Which is riskier, SCHD or SHYL?

SCHD has been the more volatile fund at 13.6% annualized versus 6.4% for SHYL. Worst drawdown: SCHD -33.4% vs SHYL -21.6%.

Should I hold both SCHD and SHYL?

SCHD and SHYL have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and SHYL?

SCHD and SHYL share 0 common holdings with a 0.0% weight overlap. Combined, they hold 837 unique securities.

Which pays a higher dividend, SCHD or SHYL?

SCHD yields 3.31% while SHYL yields 6.91%, so SHYL currently pays the higher dividend yield.

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