SCHD vs XSHQ
SCHD vs XSHQ
Schwab US Dividend Equity ETF vs Invesco S&P SmallCap Quality ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. XSHQ offers more diversification with 120 holdings.
Side-by-Side Comparison
| Metric | SCHD | XSHQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.29% | |
| AUM | $103.7B | $248M | |
| Dividend Yield | 3.31% | 1.17% | |
| Holdings | 104 | 118 | |
| YTD Return | +24.26% | +16.14% | |
| 1Y Return | +31.38% | +19.10% | |
| 3Y Return (annualized) | +15.08% | +10.35% | |
| 5Y Return (annualized) | +9.72% | +7.38% | |
| Volatility (annualized) | 13.6% | 19.2% | |
| Max Drawdown | -33.4% | -38.3% | |
| Fund Family | Charles Schwab Asset Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Apr 3, 2017 |
SCHD vs XSHQ Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Invesco S&P SmallCap Quality ETF (XSHQ) is a ETF from Invesco (US). Over the past year SCHD returned +31.38% while XSHQ returned +19.10%. Year to date, SCHD is up 24.26% versus a gain of 16.14% for XSHQ.
Over three years, SCHD compounded at +15.08% per year against +10.35% for XSHQ; over five years the annualized figures are +9.72% and +7.38% respectively. Across the full 9-year window we track, SCHD has the edge at +11.39% annualized vs +9.15%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XSHQ has been the more volatile fund, with annualized monthly volatility of 19.2% 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 -38.3% for XSHQ. 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while XSHQ charges 0.29%. On a $10,000 position that is $6 vs $29 annually, a gap of $23 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 1.17% for XSHQ.
Holdings Overlap
SCHD and XSHQ share 13 holdings out of 207 unique holdings combined, representing a 0.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in XSHQ | Difference |
|---|---|---|---|
| MC | 0.13% | 1.72% | 1.59% |
| APAM | 0.07% | 1.36% | 1.29% |
| WU | 0.07% | 0.75% | 0.68% |
| KFY | Pro | Pro | Pro |
| RHI | Pro | Pro | Pro |
| CNS | Pro | Pro | Pro |
| OFG:PR | Pro | Pro | Pro |
| CHCO | Pro | Pro | Pro |
| BKE | Pro | Pro | Pro |
| LKFN | Pro | Pro | Pro |
See all 10 holdings SCHD shares with XSHQ Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, SCHD or XSHQ?
SCHD has an expense ratio of 0.06% while XSHQ charges 0.29%. SCHD is the cheaper option. On a $10,000 investment, that is $23 per year of difference.
Which performed better, SCHD or XSHQ?
Over the past year SCHD returned +31.38% vs +19.10% for XSHQ, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), SCHD annualized +11.39% vs +9.15% for XSHQ. Past performance does not guarantee future results.
Which is riskier, SCHD or XSHQ?
XSHQ has been the more volatile fund at 19.2% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs XSHQ -38.3%.
Should I hold both SCHD and XSHQ?
SCHD and XSHQ have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and XSHQ?
SCHD and XSHQ share 13 common holdings with a 0.8% weight overlap. Combined, they hold 207 unique securities.
Which pays a higher dividend, SCHD or XSHQ?
SCHD yields 3.31% while XSHQ yields 1.17%, so SCHD currently pays the higher dividend yield.
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