SCHD vs TOPT

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricSCHDTOPTWinner
Expense Ratio0.06%0.20%
AUM$103.7B$658M
Dividend Yield3.31%0.38%
Holdings10425
YTD Return+23.31%+9.10%
1Y Return+30.42%+21.13%
3Y Return (annualized)+14.66%-
5Y Return (annualized)+9.59%-
Volatility (annualized)13.6%15.8%
Max Drawdown-33.4%-21.2%
Fund FamilyCharles Schwab Asset ManagementiShares by BlackRock (US)
CategoryEquityEquity
InceptionOct 20, 2011Oct 23, 2024

SCHD vs TOPT Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and iShares Top 20 US Stocks ETF (TOPT) is a ETF from iShares by BlackRock (US). Over the past year SCHD returned +30.42% while TOPT returned +21.13%. Year to date, SCHD is up 23.31% versus a gain of 9.10% for TOPT.

Risk: Volatility and Drawdowns

TOPT has been the more volatile fund, with annualized monthly volatility of 15.8% compared with 13.6% for SCHD. 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 -21.2% for TOPT. 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 0.11. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while TOPT 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 0.38% for TOPT.

Holdings Overlap

0.0%overlap

SCHD and TOPT share 0 holdings out of 122 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 TOPT?

SCHD has an expense ratio of 0.06% while TOPT 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 TOPT?

Over the past year SCHD returned +30.42% vs +21.13% for TOPT, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), SCHD annualized +11.34% vs +19.49% for TOPT. Past performance does not guarantee future results.

Which is riskier, SCHD or TOPT?

TOPT has been the more volatile fund at 15.8% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TOPT -21.2%.

Should I hold both SCHD and TOPT?

SCHD and TOPT have a monthly-return correlation of 0.11, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and TOPT?

SCHD and TOPT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 122 unique securities.

Which pays a higher dividend, SCHD or TOPT?

SCHD yields 3.31% while TOPT yields 0.38%, so SCHD currently pays the higher dividend yield.

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