SCHD vs TSEC
SCHD vs TSEC
Schwab US Dividend Equity ETF vs Touchstone Securitized Income ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | TSEC | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.40% | |
| AUM | $103.7B | $162M | |
| Dividend Yield | 3.31% | 5.02% | |
| Holdings | 104 | 122 | |
| YTD Return | +24.08% | +1.63% | |
| 1Y Return | +31.88% | +4.70% | |
| 3Y Return (annualized) | +14.92% | +6.87% | |
| 5Y Return (annualized) | +9.85% | - | |
| Volatility (annualized) | 13.6% | 2.4% | |
| Max Drawdown | -33.4% | -1.8% | |
| Fund Family | Charles Schwab Asset Management | Touchstone Investments | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Jul 17, 2023 |
SCHD vs TSEC Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Touchstone Securitized Income ETF (TSEC) is a ETF from Touchstone Investments. Over the past year SCHD returned +31.88% while TSEC returned +4.70%. Year to date, SCHD is up 24.08% versus a gain of 1.63% for TSEC.
Over three years, SCHD compounded at +14.92% per year against +6.87% for TSEC. Across the full 3-year window we track, SCHD has the edge at +11.39% annualized vs +6.91%. 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 2.4% for TSEC. 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 -1.8% for TSEC. 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TSEC charges 0.40%. On a $10,000 position that is $6 vs $40 annually, a gap of $34 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 5.02% for TSEC.
Holdings Overlap
SCHD and TSEC share 0 holdings out of 120 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 TSEC?
SCHD has an expense ratio of 0.06% while TSEC charges 0.40%. SCHD is the cheaper option. On a $10,000 investment, that is $34 per year of difference.
Which performed better, SCHD or TSEC?
Over the past year SCHD returned +31.88% vs +4.70% for TSEC, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), SCHD annualized +11.39% vs +6.91% for TSEC. Past performance does not guarantee future results.
Which is riskier, SCHD or TSEC?
SCHD has been the more volatile fund at 13.6% annualized versus 2.4% for TSEC. Worst drawdown: SCHD -33.4% vs TSEC -1.8%.
Should I hold both SCHD and TSEC?
SCHD and TSEC have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TSEC?
SCHD and TSEC share 0 common holdings with a 0.0% weight overlap. Combined, they hold 120 unique securities.
Which pays a higher dividend, SCHD or TSEC?
SCHD yields 3.31% while TSEC yields 5.02%, so TSEC currently pays the higher dividend yield.
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