SCHD vs. SHLD

Last updated Jun 14, 2026

SCHD (Schwab U.S. Dividend Equity ETF) and SHLD (Global X Defense Tech ETF) are both exchange-traded funds - SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index, while SHLD is a Aerospace & Defense fund tracking the Global X Defense Tech Index. Both are passively managed. Over the past year, SCHD returned 26.72% vs 8.26% for SHLD. At a 0.36 correlation, their price movements are largely independent. SCHD charges 0.06%/yr vs 0.50%/yr for SHLD.

Performance

SCHD vs. SHLD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab U.S. Dividend Equity ETF (SCHD) and Global X Defense Tech ETF (SHLD). 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 SHLD's -1.50% return.

SCHD

• 1D: 0.89%
• 1M: 3.47%
• YTD: 20.66%
• 6M: 19.57%
• 1Y: 26.72%
• 3Y*: 14.90%
• 5Y*: 8.75%
• 10Y*: 12.91%

SHLD

• 1D: -2.04%
• 1M: 2.37%
• YTD: -1.50%
• 6M: -1.03%
• 1Y: 8.26%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SCHD vs. SHLD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
SCHD Schwab U.S. Dividend Equity ETF	20.66%	4.34%	11.66%	5.21%
SHLD Global X Defense Tech ETF	-1.50%	74.16%	35.03%	12.89%

Correlation

The correlation between SCHD and SHLD is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.22
Correlation (All Time) Calculated using the full available price history since Sep 13, 2023	0.36

The correlation between SCHD and SHLD shifts across timeframes, from 0.22 (1 year) to 0.36 (all time), reflecting how their relationship changes across market environments.

SCHD vs. SHLD - Sectors Allocation Comparison

Sectors	SCHD	SHLD
Technology	19.4%	12.2%
Consumer Defensive	18.5%	-
Healthcare	18.4%	-
Energy	14.6%	-
Financial Services	9.1%	-
Industrials	7.4%	87.8%
Consumer Cyclical	6.7%	-
Communication Services	6.0%	-
Basic Materials	1.2%	-
Utilities	0.0%	-
Real Estate	-	-

Return for Risk

SCHD vs. SHLD — 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

SHLD

SHLD Risk / Return Rank: 16
SHLD Sharpe Ratio Rank: 17
SHLD Sortino Ratio Rank: 17
SHLD Omega Ratio Rank: 16
SHLD Calmar Ratio Rank: 16
SHLD Martin Ratio Rank: 16

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. SHLD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Dividend Equity ETF (SCHD) and Global X Defense Tech ETF (SHLD). 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	SHLD	Difference
Sharpe ratio: Return per unit of total volatility	2.41	0.43	+1.98
Sortino ratio: Return per unit of downside risk	3.72	0.78	+2.94
Omega ratio: Gain probability vs. loss probability	1.43	1.09	+0.34
Calmar ratio: Return relative to maximum drawdown	5.70	0.52	+5.18
Martin ratio: Return relative to average drawdown	13.97	1.28	+12.68

SCHD vs. SHLD - Sharpe Ratio Comparison

The current SCHD Sharpe Ratio is 2.41, which is higher than the SHLD Sharpe Ratio of 0.43. The chart below compares the historical Sharpe Ratios of SCHD and SHLD, 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. SHLD - Drawdown Comparison

The maximum SCHD drawdown since its inception was -33.37%, which is greater than SHLD's maximum drawdown of -20.10%. Use the drawdown chart below to compare losses from any high point for SCHD and SHLD.

Drawdown Indicators

	SCHD	SHLD	Difference
Max Drawdown Largest peak-to-trough decline	-33.37%	-20.10%	-13.27%
Max Drawdown (1Y) Largest decline over 1 year	-4.61%	-20.10%	+15.49%
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%	-18.20%	+18.17%
Average Drawdown Average peak-to-trough decline	-3.31%	-3.34%	+0.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.89%	8.12%	-6.23%

Volatility

SCHD vs. SHLD - Volatility Comparison

The current volatility for Schwab U.S. Dividend Equity ETF (SCHD) is 3.05%, while Global X Defense Tech ETF (SHLD) has a volatility of 9.05%. This indicates that SCHD experiences smaller price fluctuations and is considered to be less risky than SHLD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHD	SHLD	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.05%	9.05%	-6.00%
Volatility (6M) Calculated over the trailing 6-month period	7.53%	19.94%	-12.41%
Volatility (1Y) Calculated over the trailing 1-year period	10.93%	24.55%	-13.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.38%	21.29%	-6.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.72%	21.29%	-4.57%

SCHD vs. SHLD - Expense Ratio Comparison

SCHD has a 0.06% expense ratio, which is lower than SHLD's 0.50% expense ratio.

Dividends

SCHD vs. SHLD - Dividend Comparison

SCHD's dividend yield for the trailing twelve months is around 3.22%, more than SHLD's 0.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
SHLD Global X Defense Tech ETF	0.56%	0.55%	0.53%	0.26%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SCHD and SHLD in my portfolio?

SCHD and SHLD have a correlation of 0.22, 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 SHLD?

SHLD has higher volatility (9.05%) compared to SCHD (3.05%). In terms of maximum drawdown, SCHD dropped -33.37% vs SHLD's -20.10%.

Which ETF is better, SCHD or SHLD?

On 1-year performance, SCHD leads with 26.72% vs 8.26% for SHLD. On fees, SCHD is cheaper at 0.06% per year. On volatility, SCHD has been the lower-risk option at 3.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHD or SHLD?

Over the 1-year period, SCHD has performed better with a 26.72% return vs 8.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHD or SHLD?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.50% for SHLD.

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

SCHD has the higher dividend yield at 3.22%, compared with 0.56% for SHLD.

What is the main difference between SCHD and SHLD?

SCHD is categorized as Dividend, while SHLD is Aerospace & Defense. SCHD tracks Dow Jones U.S. Dividend 100 Index, while SHLD tracks Global X Defense Tech Index. They also come from different issuers: Charles Schwab and Global X. Their fees differ too: 0.06% for SCHD and 0.50% for SHLD.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.41 vs 0.43), 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.