SDY vs. SCHD

Last updated Aug 2, 2026

SDY (SPDR S&P Dividend ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - SDY is a Mid Cap Value Equities fund tracking the S&P High Yield Dividend Aristocrats 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, SDY returned 9.36%/yr vs 12.76%/yr for SCHD. Their correlation of 0.92 means they have usually moved in the same direction. SDY charges 0.35%/yr vs 0.06%/yr for SCHD.

Performance

SDY vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Dividend ETF (SDY) 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, SDY achieves a 12.79% return, which is significantly lower than SCHD's 24.03% return. Over the past 10 years, SDY has underperformed SCHD with an annualized return of 9.36%, while SCHD has yielded a comparatively higher 12.76% annualized return.

SDY

• 1D: -0.28%
• 1M: -0.43%
• 6M: 5.53%
• YTD: 12.79%
• 1Y: 16.57%
• 3Y*: 9.90%
• 5Y*: 7.52%
• 10Y*: 9.36%
• ALL TIME*: 9.00%

SCHD

• 1D: 0.18%
• 1M: 3.33%
• 6M: 14.09%
• YTD: 24.03%
• 1Y: 31.54%
• 3Y*: 14.19%
• 5Y*: 9.54%
• 10Y*: 12.76%
• ALL TIME*: 13.39%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
SCHD Schwab U.S. Dividend Equity ETF	$786.88M	$715.86M	$685.58M
SDY SPDR S&P Dividend ETF	$29.02M	$30.00M	$33.36M

SDY vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SDY SPDR S&P Dividend ETF	12.79%	8.18%	8.45%	2.61%	-0.54%	25.32%	1.71%	23.29%	-2.74%	15.82%
SCHD Schwab U.S. Dividend Equity ETF	24.03%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	20.85%

Correlation

The correlation between SDY and SCHD is 0.85, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.85
Correlation (3Y) Balances recent behavior with more history.	0.89
Correlation (5Y) Shows whether the relationship held over a longer period.	0.91
Correlation (10Y) Provides a long-term view across more market conditions.	0.91
Correlation (All Time) Calculated using the full available price history since Oct 20, 2011	0.92

The correlation between SDY and SCHD has been stable across timeframes, ranging from 0.85 to 0.92 - a consistent structural relationship.

SDY vs. SCHD - Sectors Allocation Comparison

Sectors	SDY	SCHD
Industrials	17.5%	7.8%
Consumer Defensive	16.3%	20.6%
Utilities	14.2%	0.1%
Financial Services	12.6%	9.9%
Technology	10.3%	12.7%
Healthcare	7.9%	20.8%
Consumer Cyclical	5.9%	7.7%
Basic Materials	5.8%	1.2%
Real Estate	4.4%	-
Energy	2.8%	14.1%
Communication Services	2.2%	6.2%

Return for Risk

SDY vs. SCHD — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

SDY

SDY Risk / Return Rank: 62
SDY Sharpe Ratio Rank: 66
SDY Sortino Ratio Rank: 73
SDY Omega Ratio Rank: 62
SDY Calmar Ratio Rank: 61
SDY Martin Ratio Rank: 49

SCHD

SCHD Risk / Return Rank: 95
SCHD Sharpe Ratio Rank: 96
SCHD Sortino Ratio Rank: 96
SCHD Omega Ratio Rank: 94
SCHD Calmar Ratio Rank: 96
SCHD Martin Ratio Rank: 93

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

SDY vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Dividend ETF (SDY) 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.

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.

	SDY	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	1.51	2.81	-1.30
Sortino ratio: Return per unit of downside risk	2.32	4.37	-2.05
Omega ratio: Gain probability vs. loss probability	1.26	1.51	-0.24
Calmar ratio: Return relative to maximum drawdown	2.12	6.74	-4.62
Martin ratio: Return relative to average drawdown	5.70	17.01	-11.32

SDY vs. SCHD - Sharpe Ratio Comparison

The current SDY Sharpe Ratio is 1.51, which is lower than the SCHD Sharpe Ratio of 2.81. The chart below compares the historical Sharpe Ratios of SDY 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.

Drawdowns

SDY vs. SCHD - Drawdown Comparison

The maximum SDY drawdown since its inception was -54.75%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for SDY and SCHD.

Drawdown Indicators

	SDY	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-54.75%	-33.37%	-21.38%
Max Drawdown (1Y) Largest decline over 1 year	-7.67%	-4.61%	-3.06%
Max Drawdown (3Y) Largest decline over 3 years	-14.39%	-16.13%	+1.74%
Max Drawdown (5Y) Largest decline over 5 years	-15.21%	-16.85%	+1.64%
Max Drawdown (10Y) Largest decline over 10 years	-36.70%	-33.37%	-3.33%
Current Drawdown Current decline from peak	-2.33%	-1.24%	-1.09%
Average Drawdown Average peak-to-trough decline	-6.17%	-3.30%	-2.87%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.84%	1.82%	+1.02%

Volatility

SDY vs. SCHD - Volatility Comparison

SPDR S&P Dividend ETF (SDY) has a higher volatility of 4.40% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 4.11%. This indicates that SDY's price experiences larger fluctuations and is considered to be riskier than SCHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SDY	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.40%	4.11%	+0.29%
Volatility (6M) Calculated over the trailing 6-month period	8.15%	8.11%	+0.04%
Volatility (1Y) Calculated over the trailing 1-year period	10.77%	11.13%	-0.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.02%	14.39%	-0.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.09%	16.72%	+0.37%

SDY vs. SCHD - Expense Ratio Comparison

SDY has a 0.35% expense ratio, which is higher than SCHD's 0.06% expense ratio.

Dividends

SDY vs. SCHD - Dividend Comparison

SDY's dividend yield for the trailing twelve months is around 2.41%, less than SCHD's 3.13% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHD Schwab U.S. Dividend Equity ETF	3.13%	3.82%	3.64%	3.49%	3.39%	2.78%	3.16%	2.98%	3.06%	2.63%	2.89%	2.97%
SDY SPDR S&P Dividend ETF	2.41%	2.61%	2.56%	2.64%	2.55%	2.63%	2.85%	2.45%	2.73%	4.69%	3.30%	6.20%

Frequently Asked Questions

Can I hold both SDY and SCHD in my portfolio?

SDY and SCHD have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SDY or SCHD?

SDY has higher volatility (4.40%) compared to SCHD (4.11%). In terms of maximum drawdown, SDY dropped -54.75% vs SCHD's -33.37%.

Which ETF is better, SDY or SCHD?

On 10-year performance, SCHD leads with 12.76% vs 9.36% for SDY. On fees, SCHD is cheaper at 0.06% per year. On volatility, SCHD has been the lower-risk option at 4.11%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SDY or SCHD?

Over the 10-year period, SCHD has performed better with a 12.76% return vs 9.36%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SDY or SCHD?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.35% for SDY.

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

SCHD has the higher dividend yield at 3.13%, compared with 2.41% for SDY.

What is the main difference between SDY and SCHD?

SDY is categorized as Mid Cap Value Equities, while SCHD is Dividend. SDY tracks S&P High Yield Dividend Aristocrats Index, while SCHD tracks Dow Jones U.S. Dividend 100 Index. They also come from different issuers: State Street and Charles Schwab. Their fees differ too: 0.35% for SDY and 0.06% for SCHD.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.81 vs 1.51), 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.