SCHD vs. PSDM

Last updated Jun 14, 2026

SCHD (Schwab U.S. Dividend Equity ETF) and PSDM (PGIM Short Duration Multi-Sector Bond ETF) are both exchange-traded funds - SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index, while PSDM is a Multisector Bonds fund actively managed by PGIM. SCHD is passively managed, while PSDM is actively managed. Over the past year, SCHD returned 26.72% vs 5.09% for PSDM. At a 0.19 correlation, their price movements are largely independent. SCHD charges 0.06%/yr vs 0.40%/yr for PSDM.

Performance

SCHD vs. PSDM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab U.S. Dividend Equity ETF (SCHD) and PGIM Short Duration Multi-Sector Bond ETF (PSDM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCHD achieves a 20.66% return, which is significantly higher than PSDM's 1.39% return.

SCHD

• 1D: 0.89%
• 1M: 3.21%
• YTD: 20.66%
• 6M: 19.57%
• 1Y: 26.72%
• 3Y*: 14.90%
• 5Y*: 8.75%
• 10Y*: 12.91%

PSDM

• 1D: 0.04%
• 1M: 0.33%
• YTD: 1.39%
• 6M: 1.86%
• 1Y: 5.09%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SCHD vs. PSDM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
SCHD Schwab U.S. Dividend Equity ETF	20.66%	4.34%	11.66%	3.02%
PSDM PGIM Short Duration Multi-Sector Bond ETF	1.39%	6.16%	5.48%	3.96%

Correlation

The correlation between SCHD and PSDM is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.23
Correlation (All Time) Calculated using the full available price history since Jul 26, 2023	0.19

Return for Risk

SCHD vs. PSDM — Risk / Return Rank

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

SCHD

SCHD Risk / Return Rank: 87
SCHD Sharpe Ratio Rank: 86
SCHD Sortino Ratio Rank: 90
SCHD Omega Ratio Rank: 83
SCHD Calmar Ratio Rank: 93
SCHD Martin Ratio Rank: 81

PSDM

PSDM Risk / Return Rank: 91
PSDM Sharpe Ratio Rank: 92
PSDM Sortino Ratio Rank: 95
PSDM Omega Ratio Rank: 94
PSDM Calmar Ratio Rank: 85
PSDM Martin Ratio Rank: 91

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.

SCHD vs. PSDM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Dividend Equity ETF (SCHD) and PGIM Short Duration Multi-Sector Bond ETF (PSDM). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	SCHD	PSDM	Difference
Sharpe ratio: Return per unit of total volatility	2.41	2.82	-0.41
Sortino ratio: Return per unit of downside risk	3.72	4.77	-1.05
Omega ratio: Gain probability vs. loss probability	1.43	1.61	-0.18
Calmar ratio: Return relative to maximum drawdown	5.70	4.15	+1.55
Martin ratio: Return relative to average drawdown	13.97	18.67	-4.71

SCHD vs. PSDM - Sharpe Ratio Comparison

The current SCHD Sharpe Ratio is 2.41, which is comparable to the PSDM Sharpe Ratio of 2.82. The chart below compares the historical Sharpe Ratios of SCHD and PSDM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

SCHD vs. PSDM - Drawdown Comparison

The maximum SCHD drawdown since its inception was -33.37%, which is greater than PSDM's maximum drawdown of -1.19%. Use the drawdown chart below to compare losses from any high point for SCHD and PSDM.

Drawdown Indicators

	SCHD	PSDM	Difference
Max Drawdown Largest peak-to-trough decline	-33.37%	-1.19%	-32.18%
Max Drawdown (1Y) Largest decline over 1 year	-4.61%	-1.19%	-3.42%
Max Drawdown (3Y) Largest decline over 3 years	-16.13%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-16.85%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-33.37%	—	—
Current Drawdown Current decline from peak	-0.03%	0.00%	-0.03%
Average Drawdown Average peak-to-trough decline	-3.31%	-0.17%	-3.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.89%	0.26%	+1.63%

Volatility

SCHD vs. PSDM - Volatility Comparison

Schwab U.S. Dividend Equity ETF (SCHD) has a higher volatility of 3.05% compared to PGIM Short Duration Multi-Sector Bond ETF (PSDM) at 0.55%. This indicates that SCHD's price experiences larger fluctuations and is considered to be riskier than PSDM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHD	PSDM	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.05%	0.55%	+2.50%
Volatility (6M) Calculated over the trailing 6-month period	7.53%	1.30%	+6.23%
Volatility (1Y) Calculated over the trailing 1-year period	10.93%	1.75%	+9.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.38%	2.00%	+12.38%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.72%	2.00%	+14.72%

SCHD vs. PSDM - Expense Ratio Comparison

SCHD has a 0.06% expense ratio, which is lower than PSDM's 0.40% expense ratio.

Dividends

SCHD vs. PSDM - Dividend Comparison

SCHD's dividend yield for the trailing twelve months is around 3.22%, less than PSDM's 4.84% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PSDM PGIM Short Duration Multi-Sector Bond ETF	4.84%	4.57%	5.17%	2.91%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SCHD Schwab U.S. Dividend Equity ETF	3.22%	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 SCHD and PSDM in my portfolio?

SCHD and PSDM have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCHD or PSDM?

SCHD has higher volatility (3.05%) compared to PSDM (0.55%). In terms of maximum drawdown, SCHD dropped -33.37% vs PSDM's -1.19%.

Which ETF is better, SCHD or PSDM?

On 1-year performance, SCHD leads with 26.72% vs 5.09% for PSDM. On fees, SCHD is cheaper at 0.06% per year. On volatility, PSDM has been the lower-risk option at 0.55%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHD or PSDM?

Over the 1-year period, SCHD has performed better with a 26.72% return vs 5.09%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHD or PSDM?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.40% for PSDM.

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

PSDM has the higher dividend yield at 4.84%, compared with 3.22% for SCHD.

What is the main difference between SCHD and PSDM?

SCHD is categorized as Dividend, while PSDM is Multisector Bonds. They also come from different issuers: Charles Schwab and PGIM. Their fees differ too: 0.06% for SCHD and 0.40% for PSDM.

Which has better risk-adjusted returns?

PSDM currently has the higher Sharpe Ratio (2.82 vs 2.41), 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.