SCHD vs XFLT
SCHD vs XFLT
Schwab US Dividend Equity ETF vs XAI Octagon Floating Rate & Alternative Income Trust
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. XFLT offers more diversification with 216 holdings.
Side-by-Side Comparison
| Metric | SCHD | XFLT | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 6.29% | |
| AUM | $103.7B | $345M | |
| Dividend Yield | 3.31% | 16.04% | |
| Holdings | 104 | 535 | |
| YTD Return | +24.08% | -5.70% | |
| 1Y Return | +31.88% | -13.85% | |
| 3Y Return (annualized) | +14.92% | -1.66% | |
| 5Y Return (annualized) | +9.85% | -1.78% | |
| Volatility (annualized) | 13.6% | 25.7% | |
| Max Drawdown | -33.4% | -64.6% | |
| Fund Family | Charles Schwab Asset Management | XA Investments LLC | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Sep 27, 2017 |
SCHD vs XFLT Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and XAI Octagon Floating Rate & Alternative Income Trust (XFLT) is a ETF from XA Investments LLC. Over the past year SCHD returned +31.88% while XFLT returned -13.85%. Year to date, SCHD is up 24.08% versus a loss of 5.70% for XFLT.
Over three years, SCHD compounded at +14.92% per year against -1.66% for XFLT; over five years the annualized figures are +9.85% and -1.78% respectively. Across the full 9-year window we track, SCHD has the edge at +11.39% annualized vs -1.79%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XFLT has been the more volatile fund, with annualized monthly volatility of 25.7% 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 -64.6% for XFLT. 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while XFLT charges 6.29%. On a $10,000 position that is $6 vs $629 annually, a gap of $623 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 16.04% for XFLT.
Holdings Overlap
SCHD and XFLT share 0 holdings out of 316 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 XFLT?
SCHD has an expense ratio of 0.06% while XFLT charges 6.29%. SCHD is the cheaper option. On a $10,000 investment, that is $623 per year of difference.
Which performed better, SCHD or XFLT?
Over the past year SCHD returned +31.88% vs -13.85% for XFLT, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), SCHD annualized +11.39% vs -1.79% for XFLT. Past performance does not guarantee future results.
Which is riskier, SCHD or XFLT?
XFLT has been the more volatile fund at 25.7% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs XFLT -64.6%.
Should I hold both SCHD and XFLT?
SCHD and XFLT have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and XFLT?
SCHD and XFLT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 316 unique securities.
Which pays a higher dividend, SCHD or XFLT?
SCHD yields 3.31% while XFLT yields 16.04%, so XFLT currently pays the higher dividend yield.
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