SCHD vs THEQ
SCHD vs THEQ
Schwab US Dividend Equity ETF vs T. Rowe Price Hedged Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. THEQ offers more diversification with 162 holdings.
Side-by-Side Comparison
| Metric | SCHD | THEQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.46% | |
| AUM | $103.7B | $37M | |
| Dividend Yield | 3.31% | 0.74% | |
| Holdings | 104 | 347 | |
| YTD Return | +24.26% | +9.06% | |
| 1Y Return | +31.38% | +15.18% | |
| 3Y Return (annualized) | +15.08% | - | |
| 5Y Return (annualized) | +9.72% | - | |
| Volatility (annualized) | 13.6% | 8.2% | |
| Max Drawdown | -33.4% | -8.1% | |
| Fund Family | Charles Schwab Asset Management | T.Rowe Price | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Mar 26, 2025 |
SCHD vs THEQ Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and T. Rowe Price Hedged Equity ETF (THEQ) is a ETF from T.Rowe Price. Over the past year SCHD returned +31.38% while THEQ returned +15.18%. Year to date, SCHD is up 24.26% versus a gain of 9.06% for THEQ.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 8.2% for THEQ. 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 -8.1% for THEQ. 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while THEQ charges 0.46%. On a $10,000 position that is $6 vs $46 annually, a gap of $40 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.74% for THEQ.
Holdings Overlap
SCHD and THEQ share 0 holdings out of 262 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 THEQ?
SCHD has an expense ratio of 0.06% while THEQ charges 0.46%. SCHD is the cheaper option. On a $10,000 investment, that is $40 per year of difference.
Which performed better, SCHD or THEQ?
Over the past year SCHD returned +31.38% vs +15.18% for THEQ, so SCHD leads on 1-year performance. Over the longest common window we track (1 years), SCHD annualized +11.39% vs +16.45% for THEQ. Past performance does not guarantee future results.
Which is riskier, SCHD or THEQ?
SCHD has been the more volatile fund at 13.6% annualized versus 8.2% for THEQ. Worst drawdown: SCHD -33.4% vs THEQ -8.1%.
Should I hold both SCHD and THEQ?
SCHD and THEQ have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and THEQ?
SCHD and THEQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 262 unique securities.
Which pays a higher dividend, SCHD or THEQ?
SCHD yields 3.31% while THEQ yields 0.74%, so SCHD currently pays the higher dividend yield.
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