LVHD vs. SCHD

Last updated Jun 3, 2026

LVHD (Legg Mason Low Volatility High Dividend ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - LVHD is a Volatility Hedged Equity fund tracking the QS Low Volatility High Dividend Index, while SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. Both are passively managed. Over the past 10 years, LVHD returned 8.05%/yr vs 12.77%/yr for SCHD. Their correlation of 0.83 suggests significant overlap in exposure. LVHD charges 0.27%/yr vs 0.06%/yr for SCHD.

Performance

LVHD vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Legg Mason Low Volatility High Dividend ETF (LVHD) and Schwab U.S. Dividend Equity ETF (SCHD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LVHD achieves a 6.87% return, which is significantly lower than SCHD's 19.01% return. Over the past 10 years, LVHD has underperformed SCHD with an annualized return of 8.05%, while SCHD has yielded a comparatively higher 12.77% annualized return.

LVHD

• 1D: 0.65%
• 1M: -1.96%
• YTD: 6.87%
• 6M: 7.02%
• 1Y: 9.87%
• 3Y*: 9.38%
• 5Y*: 6.16%
• 10Y*: 8.05%

SCHD

• 1D: 0.59%
• 1M: 1.60%
• YTD: 19.01%
• 6M: 20.36%
• 1Y: 28.08%
• 3Y*: 15.09%
• 5Y*: 8.49%
• 10Y*: 12.77%

*Multi-year figures are annualized to reflect compound growth (CAGR)

LVHD vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
LVHD Legg Mason Low Volatility High Dividend ETF	6.87%	7.50%	10.18%	-0.95%	-1.82%	26.90%	-1.28%	22.91%	-5.58%	14.25%
SCHD Schwab U.S. Dividend Equity ETF	19.01%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	20.85%

Correlation

The correlation between LVHD and SCHD is 0.79, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.79
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (5Y) Calculated over the trailing 5-year period	0.85
Correlation (10Y) Calculated over the trailing 10-year period	0.83
Correlation (All Time) Calculated using the full available price history since Dec 30, 2015	0.83

The correlation between LVHD and SCHD has been stable across timeframes, ranging from 0.79 to 0.85 - a consistent structural relationship.

LVHD vs. SCHD - Sectors Allocation Comparison

Sectors	LVHD	SCHD
Utilities	25.5%	0.0%
Consumer Defensive	18.5%	19.2%
Real Estate	15.0%	-
Financial Services	8.6%	9.3%
Consumer Cyclical	6.8%	6.3%
Energy	6.7%	16.2%
Technology	5.9%	16.4%
Industrials	4.6%	7.5%
Healthcare	4.6%	18.8%
Communication Services	3.8%	6.3%
Basic Materials	-	1.2%

Return for Risk

LVHD vs. SCHD — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

LVHD

LVHD Risk / Return Rank: 29
LVHD Sharpe Ratio Rank: 29
LVHD Sortino Ratio Rank: 29
LVHD Omega Ratio Rank: 26
LVHD Calmar Ratio Rank: 32
LVHD Martin Ratio Rank: 29

SCHD

SCHD Risk / Return Rank: 82
SCHD Sharpe Ratio Rank: 78
SCHD Sortino Ratio Rank: 87
SCHD Omega Ratio Rank: 76
SCHD Calmar Ratio Rank: 92
SCHD Martin Ratio Rank: 77

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

LVHD vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Legg Mason Low Volatility High Dividend ETF (LVHD) and Schwab U.S. Dividend Equity ETF (SCHD). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	LVHD	SCHD	Difference
Sharpe ratio Return per unit of total volatility	1.04	2.57	-1.53
Sortino ratio Return per unit of downside risk	1.55	3.98	-2.43
Omega ratio Gain probability vs. loss probability	1.18	1.46	-0.28
Calmar ratio Return relative to maximum drawdown	1.60	6.17	-4.57
Martin ratio Return relative to average drawdown	4.11	15.20	-11.09
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LVHD vs. SCHD - Sharpe Ratio Comparison

The current LVHD Sharpe Ratio is 1.04, which is lower than the SCHD Sharpe Ratio of 2.57. The chart below compares the historical Sharpe Ratios of LVHD and SCHD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	LVHD	SCHD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.04	2.57	-1.53
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.48	0.59	-0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.52	0.77	-0.25
Sharpe Ratio (All Time) Calculated using the full available price history	0.56	0.86	-0.30

Drawdowns

LVHD vs. SCHD - Drawdown Comparison

The maximum LVHD drawdown since its inception was -37.32%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for LVHD and SCHD.

Drawdown Indicators

	LVHD	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-37.32%	-33.37%	-3.95%
Max Drawdown (1Y) Largest decline over 1 year	-6.17%	-4.61%	-1.56%
Max Drawdown (3Y) Largest decline over 3 years	-14.29%	-16.13%	+1.84%
Max Drawdown (5Y) Largest decline over 5 years	-16.75%	-16.85%	+0.10%
Max Drawdown (10Y) Largest decline over 10 years	-37.32%	-33.37%	-3.95%
Current Drawdown Current decline from peak	-4.70%	-1.40%	-3.30%
Average Drawdown Average peak-to-trough decline	-4.05%	-3.32%	-0.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.40%	1.87%	+0.53%

Volatility

LVHD vs. SCHD - Volatility Comparison

Legg Mason Low Volatility High Dividend ETF (LVHD) and Schwab U.S. Dividend Equity ETF (SCHD) have volatilities of 2.97% and 2.92%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LVHD	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.97%	2.92%	+0.05%
Volatility (6M) Calculated over the trailing 6-month period	6.73%	7.66%	-0.93%
Volatility (1Y) Calculated over the trailing 1-year period	9.52%	10.96%	-1.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.87%	14.38%	-1.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.51%	16.72%	-1.21%

LVHD vs. SCHD - Expense Ratio Comparison

LVHD has a 0.27% expense ratio, which is higher than SCHD's 0.06% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

LVHD vs. SCHD - Dividend Comparison

LVHD's dividend yield for the trailing twelve months is around 3.40%, more than SCHD's 3.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LVHD Legg Mason Low Volatility High Dividend ETF	3.40%	3.35%	4.23%	3.55%	3.30%	2.56%	3.27%	3.30%	3.82%	3.33%	2.48%	0.00%
SCHD Schwab U.S. Dividend Equity ETF	3.26%	3.82%	3.64%	3.49%	3.39%	2.78%	3.16%	2.98%	3.06%	2.63%	2.89%	2.97%

Frequently Asked Questions

Can I hold both LVHD and SCHD in my portfolio?

LVHD and SCHD have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LVHD or SCHD?

LVHD has higher volatility (2.97%) compared to SCHD (2.92%). In terms of maximum drawdown, LVHD dropped -37.32% vs SCHD's -33.37%.

Which ETF is better, LVHD or SCHD?

On 10-year performance, SCHD leads with 12.77% vs 8.05% for LVHD. On fees, SCHD is cheaper at 0.06% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LVHD or SCHD?

Over the 10-year period, SCHD has performed better with a 12.77% return vs 8.05%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LVHD or SCHD?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.27% for LVHD.

Which ETF pays a higher dividend yield, LVHD or SCHD?

LVHD has the higher dividend yield at 3.40%, compared with 3.26% for SCHD.

What is the main difference between LVHD and SCHD?

LVHD is categorized as Volatility Hedged Equity, while SCHD is Dividend. LVHD tracks QS Low Volatility High Dividend Index, while SCHD tracks Dow Jones U.S. Dividend 100 Index. They also come from different issuers: Franklin Templeton and Charles Schwab. Their fees differ too: 0.27% for LVHD and 0.06% for SCHD.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.57 vs 1.04), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.