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SCHD vs. XLE
Performance
Return for Risk
Drawdowns
Volatility
Dividends

SCHD vs. XLE

Last updated Apr 4, 2026

Compare and contrast key facts about Schwab U.S. Dividend Equity ETF (SCHD) and State Street Energy Select Sector SPDR ETF (XLE).

SCHD and XLE are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SCHD is a passively managed fund by Charles Schwab that tracks the performance of the Dow Jones U.S. Dividend 100 Index. It was launched on Oct 20, 2011. XLE is a passively managed fund by State Street that tracks the performance of the Energy Select Sector Index. It was launched on Dec 16, 1998. Both SCHD and XLE are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.

Performance

SCHD vs. XLE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab U.S. Dividend Equity ETF (SCHD) and State Street Energy Select Sector SPDR ETF (XLE). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, SCHD achieves a 12.35% return, which is significantly lower than XLE's 33.39% return. Over the past 10 years, SCHD has outperformed XLE with an annualized return of 12.30%, while XLE has yielded a comparatively lower 11.36% annualized return.

SCHD

1D
0.16%
1M
-2.29%
YTD
12.35%
6M
13.59%
1Y
18.75%
3Y*
11.70%
5Y*
8.35%
10Y*
12.30%

XLE

1D
0.47%
1M
6.14%
YTD
33.39%
6M
35.30%
1Y
41.00%
3Y*
14.70%
5Y*
23.16%
10Y*
11.36%
*Multi-year figures are annualized to reflect compound growth (CAGR)

SCHD vs. XLE - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
SCHD
Schwab U.S. Dividend Equity ETF		12.35%4.34%11.66%4.54%-3.26%29.87%15.03%27.29%-5.56%20.85%
XLE
State Street Energy Select Sector SPDR ETF		33.39%7.88%5.56%-0.63%64.32%53.28%-32.67%11.74%-18.22%-0.89%

Correlation

The correlation between SCHD and XLE is 0.65, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined. Holding both can reduce overall portfolio volatility compared to holding either one alone.

SCHD vs. XLE - Expense Ratio Comparison

SCHD has a 0.06% expense ratio, which is lower than XLE's 0.08% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

XLE
State Street Energy Select Sector SPDR ETF
SCHD
Schwab U.S. Dividend Equity ETF

Compare stocks, funds, or ETFs

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Schwab U.S. Dividend Equity ETF

State Street Energy Select Sector SPDR ETF

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SCHD vs. VOOSCHD vs. VYMSCHD vs. SPYSCHD vs. SCHGSCHD vs. JEPISCHD vs. FDVVSCHD vs. VIG
Often compared with XLE:
XLE vs. VDEXLE vs. USOXLE vs. XOPXLE vs. XLUXLE vs. XLKXLE vs. IXCXLE vs. FENY

Return for Risk

SCHD vs. XLE — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
SCHD
SCHD Risk / Return Rank: 4040
Overall Rank
SCHD Sharpe Ratio Rank: 4545
Sharpe Ratio Rank
SCHD Sortino Ratio Rank: 4646
Sortino Ratio Rank
SCHD Omega Ratio Rank: 4444
Omega Ratio Rank
SCHD Calmar Ratio Rank: 3232
Calmar Ratio Rank
SCHD Martin Ratio Rank: 3131
Martin Ratio Rank
XLE
XLE Risk / Return Rank: 5353
Overall Rank
XLE Sharpe Ratio Rank: 6464
Sharpe Ratio Rank
XLE Sortino Ratio Rank: 5858
Sortino Ratio Rank
XLE Omega Ratio Rank: 6060
Omega Ratio Rank
XLE Calmar Ratio Rank: 4949
Calmar Ratio Rank
XLE Martin Ratio Rank: 3434
Martin Ratio Rank
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. XLE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Dividend Equity ETF (SCHD) and State Street Energy Select Sector SPDR ETF (XLE). 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.

SCHDXLEDifference

Sharpe ratio

Return per unit of total volatility

0.89

1.19

-0.30

Sortino ratio

Return per unit of downside risk

1.34

1.58

-0.25

Omega ratio

Gain probability vs. loss probability

1.19

1.23

-0.05

Calmar ratio

Return relative to maximum drawdown

1.09

1.60

-0.51

Martin ratio

Return relative to average drawdown

3.69

4.21

-0.52

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SCHD vs. XLE - Sharpe Ratio Comparison

The current SCHD Sharpe Ratio is 0.89, which is comparable to the XLE Sharpe Ratio of 1.19. The chart below compares the historical Sharpe Ratios of SCHD and XLE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

SCHDXLEDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.89

1.19

-0.30

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.58

0.89

-0.31

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.74

0.39

+0.35

Sharpe Ratio (All Time)

Calculated using the full available price history

0.84

0.31

+0.53

Drawdowns

SCHD vs. XLE - Drawdown Comparison

The maximum SCHD drawdown since its inception was -33.37%, smaller than the maximum XLE drawdown of -71.26%. Use the drawdown chart below to compare losses from any high point for SCHD and XLE.

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Drawdown Indicators

SCHDXLEDifference

Max Drawdown

Largest peak-to-trough decline

-33.37%

-71.26%

+37.89%

Max Drawdown (1Y)

Largest decline over 1 year

-4.61%

-7.36%

+2.75%

Max Drawdown (5Y)

Largest decline over 5 years

-16.85%

-26.04%

+9.19%

Max Drawdown (10Y)

Largest decline over 10 years

-33.37%

-66.81%

+33.44%

Current Drawdown

Current decline from peak

-3.27%

-5.29%

+2.02%

Average Drawdown

Average peak-to-trough decline

-3.34%

-18.05%

+14.71%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.76%

7.15%

-3.39%

Volatility

SCHD vs. XLE - Volatility Comparison

The current volatility for Schwab U.S. Dividend Equity ETF (SCHD) is 2.35%, while State Street Energy Select Sector SPDR ETF (XLE) has a volatility of 6.40%. This indicates that SCHD experiences smaller price fluctuations and is considered to be less risky than XLE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

SCHDXLEDifference

Volatility (1M)

Calculated over the trailing 1-month period

2.35%

6.40%

-4.05%

Volatility (6M)

Calculated over the trailing 6-month period

7.93%

14.46%

-6.53%

Volatility (1Y)

Calculated over the trailing 1-year period

15.69%

25.21%

-9.52%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

14.40%

26.08%

-11.68%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

16.69%

29.49%

-12.80%

Dividends

SCHD vs. XLE - Dividend Comparison

SCHD's dividend yield for the trailing twelve months is around 3.45%, more than XLE's 2.52% yield.

TTM20252024202320222021202020192018201720162015
SCHD
Schwab U.S. Dividend Equity ETF		3.45%3.82%3.64%3.49%3.39%2.78%3.16%2.98%3.06%2.63%2.89%2.97%
XLE
State Street Energy Select Sector SPDR ETF		2.52%3.28%3.36%3.55%3.68%4.21%5.62%6.72%3.54%3.03%2.26%3.39%