SCHD vs UDIV

Quick Verdict

SCHD delivered stronger 1-year returns. UDIV offers more diversification with 287 holdings.

Lower Fees: TiedHigher Returns: SCHDMore Diversified: UDIV

Side-by-Side Comparison

MetricSCHDUDIVWinner
Expense Ratio0.06%0.06%
AUM$103.7B$137M
Dividend Yield3.31%1.49%
Holdings104293
YTD Return+24.26%+17.46%
1Y Return+31.38%+27.25%
3Y Return (annualized)+15.08%+23.60%
5Y Return (annualized)+9.72%+14.52%
Volatility (annualized)13.6%14.4%
Max Drawdown-33.4%-35.5%
Fund FamilyCharles Schwab Asset ManagementFranklin Templeton Investments (US)
CategoryEquityEquity
InceptionOct 20, 2011Jun 1, 2016

SCHD vs UDIV Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Franklin US Core Dividend Tilt Index ETF (UDIV) is a ETF from Franklin Templeton Investments (US). Over the past year SCHD returned +31.38% while UDIV returned +27.25%. Year to date, SCHD is up 24.26% versus a gain of 17.46% for UDIV.

Over three years, SCHD compounded at +15.08% per year against +23.60% for UDIV; over five years the annualized figures are +9.72% and +14.52% respectively. Across the full 10-year window we track, SCHD has the edge at +11.39% annualized vs +10.36%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

UDIV has been the more volatile fund, with annualized monthly volatility of 14.4% 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 -35.5% for UDIV. 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 0.82. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

SCHD charges 0.06% per year while UDIV charges 0.06%. On a $10,000 position that is $6 vs $6 annually. On income, SCHD currently yields 3.31% against 1.49% for UDIV.

Holdings Overlap

14.7%overlap

SCHD and UDIV share 44 holdings out of 343 unique holdings combined, representing a 14.7% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SCHDWeight in UDIVDifference
UNH4.54%0.62%3.92%
CVX3.95%1.03%2.92%
HD4.16%0.78%3.38%
MRKProProPro
ABTProProPro
PGProProPro
KOProProPro
AMGNProProPro
TXNProProPro
VZProProPro
See all 10 holdings SCHD shares with UDIV
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Frequently Asked Questions

Which is cheaper, SCHD or UDIV?

SCHD has an expense ratio of 0.06% while UDIV charges 0.06%. They cost the same. On a $10,000 investment, that is $0 per year of difference.

Which performed better, SCHD or UDIV?

Over the past year SCHD returned +31.38% vs +27.25% for UDIV, so SCHD leads on 1-year performance. Over the longest common window we track (10 years), SCHD annualized +11.39% vs +10.36% for UDIV. Past performance does not guarantee future results.

Which is riskier, SCHD or UDIV?

UDIV has been the more volatile fund at 14.4% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs UDIV -35.5%.

Should I hold both SCHD and UDIV?

SCHD and UDIV have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and UDIV?

SCHD and UDIV share 44 common holdings with a 14.7% weight overlap. Combined, they hold 343 unique securities.

Which pays a higher dividend, SCHD or UDIV?

SCHD yields 3.31% while UDIV yields 1.49%, so SCHD currently pays the higher dividend yield.

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