XLG vs. SCHD

Last updated Jun 16, 2026

XLG (Invesco S&P 500 Top 50 ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - XLG is a S&P 500 fund tracking the S&P 500 Top 50 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, XLG returned 17.23%/yr vs 12.83%/yr for SCHD. A 0.72 correlation means they provide meaningful diversification when combined. XLG charges 0.20%/yr vs 0.06%/yr for SCHD.

Performance

XLG vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P 500 Top 50 ETF (XLG) 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, XLG achieves a 5.56% return, which is significantly lower than SCHD's 19.96% return. Over the past 10 years, XLG has outperformed SCHD with an annualized return of 17.23%, while SCHD has yielded a comparatively lower 12.83% annualized return.

XLG

• 1D: 1.88%
• 1M: -1.70%
• YTD: 5.56%
• 6M: 6.64%
• 1Y: 25.51%
• 3Y*: 22.53%
• 5Y*: 15.57%
• 10Y*: 17.23%

SCHD

• 1D: -0.58%
• 1M: 2.87%
• YTD: 19.96%
• 6M: 18.54%
• 1Y: 25.99%
• 3Y*: 14.28%
• 5Y*: 8.90%
• 10Y*: 12.83%

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

XLG vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLG Invesco S&P 500 Top 50 ETF	5.56%	19.51%	33.49%	38.16%	-24.29%	30.77%	24.15%	32.04%	-3.59%	23.04%
SCHD Schwab U.S. Dividend Equity ETF	19.96%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	20.85%

Correlation

The correlation between XLG and SCHD is 0.13, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.13
Correlation (3Y) Calculated over the trailing 3-year period	0.34
Correlation (5Y) Calculated over the trailing 5-year period	0.55
Correlation (10Y) Calculated over the trailing 10-year period	0.63
Correlation (All Time) Calculated using the full available price history since Oct 20, 2011	0.72

Over the past year, the correlation between XLG and SCHD has dropped to 0.13 - well below their long-term average of 0.72, suggesting their price drivers have been diverging.

XLG vs. SCHD - Sectors Allocation Comparison

Sectors	XLG	SCHD
Technology	45.9%	19.4%
Communication Services	15.9%	6.0%
Consumer Cyclical	10.6%	6.7%
Financial Services	9.5%	9.1%
Healthcare	7.4%	18.4%
Consumer Defensive	5.5%	18.5%
Energy	2.6%	14.6%
Industrials	2.0%	7.4%
Basic Materials	0.6%	1.2%
Real Estate	-	-
Utilities	-	0.0%

Return for Risk

XLG vs. SCHD — Risk / Return Rank

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

XLG

XLG Risk / Return Rank: 56
XLG Sharpe Ratio Rank: 62
XLG Sortino Ratio Rank: 60
XLG Omega Ratio Rank: 61
XLG Calmar Ratio Rank: 46
XLG Martin Ratio Rank: 49

SCHD

SCHD Risk / Return Rank: 85
SCHD Sharpe Ratio Rank: 84
SCHD Sortino Ratio Rank: 90
SCHD Omega Ratio Rank: 81
SCHD Calmar Ratio Rank: 92
SCHD Martin Ratio Rank: 80

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.

XLG vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P 500 Top 50 ETF (XLG) 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.

	XLG	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	1.86	2.39	-0.53
Sortino ratio: Return per unit of downside risk	2.52	3.69	-1.17
Omega ratio: Gain probability vs. loss probability	1.33	1.43	-0.10
Calmar ratio: Return relative to maximum drawdown	2.06	5.66	-3.59
Martin ratio: Return relative to average drawdown	7.55	13.87	-6.32

XLG vs. SCHD - Sharpe Ratio Comparison

The current XLG Sharpe Ratio is 1.86, which is comparable to the SCHD Sharpe Ratio of 2.39. The chart below compares the historical Sharpe Ratios of XLG 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

XLG vs. SCHD - Drawdown Comparison

The maximum XLG drawdown since its inception was -52.39%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for XLG and SCHD.

Drawdown Indicators

	XLG	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-52.39%	-33.37%	-19.02%
Max Drawdown (1Y) Largest decline over 1 year	-12.41%	-4.61%	-7.80%
Max Drawdown (3Y) Largest decline over 3 years	-20.70%	-16.13%	-4.57%
Max Drawdown (5Y) Largest decline over 5 years	-28.02%	-16.85%	-11.17%
Max Drawdown (10Y) Largest decline over 10 years	-30.46%	-33.37%	+2.91%
Current Drawdown Current decline from peak	-3.28%	-0.61%	-2.67%
Average Drawdown Average peak-to-trough decline	-7.64%	-3.31%	-4.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.39%	1.88%	+1.51%

Volatility

XLG vs. SCHD - Volatility Comparison

Invesco S&P 500 Top 50 ETF (XLG) has a higher volatility of 4.58% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 3.14%. This indicates that XLG'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

	XLG	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.58%	3.14%	+1.44%
Volatility (6M) Calculated over the trailing 6-month period	10.57%	7.56%	+3.01%
Volatility (1Y) Calculated over the trailing 1-year period	13.78%	10.94%	+2.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.76%	14.39%	+4.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.88%	16.72%	+2.16%

XLG vs. SCHD - Expense Ratio Comparison

XLG has a 0.20% 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

XLG vs. SCHD - Dividend Comparison

XLG's dividend yield for the trailing twelve months is around 0.61%, less than SCHD's 3.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHD Schwab U.S. Dividend Equity ETF	3.24%	3.82%	3.64%	3.49%	3.39%	2.78%	3.16%	2.98%	3.06%	2.63%	2.89%	2.97%
XLG Invesco S&P 500 Top 50 ETF	0.61%	0.64%	0.72%	0.97%	1.34%	0.94%	1.25%	1.58%	2.00%	1.85%	2.00%	2.09%

Frequently Asked Questions

Can I hold both XLG and SCHD in my portfolio?

XLG and SCHD have a correlation of 0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XLG or SCHD?

XLG has higher volatility (4.58%) compared to SCHD (3.14%). In terms of maximum drawdown, XLG dropped -52.39% vs SCHD's -33.37%.

Which ETF is better, XLG or SCHD?

On 10-year performance, XLG leads with 17.23% vs 12.83% for SCHD. On fees, SCHD is cheaper at 0.06% per year. On volatility, SCHD has been the lower-risk option at 3.14%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLG or SCHD?

Over the 10-year period, XLG has performed better with a 17.23% return vs 12.83%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLG or SCHD?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.20% for XLG.

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

SCHD has the higher dividend yield at 3.24%, compared with 0.61% for XLG.

What is the main difference between XLG and SCHD?

XLG is categorized as S&P 500, while SCHD is Dividend. XLG tracks S&P 500 Top 50 Index, while SCHD tracks Dow Jones U.S. Dividend 100 Index. They also come from different issuers: Invesco and Charles Schwab. Their fees differ too: 0.20% for XLG and 0.06% for SCHD.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.39 vs 1.86), 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.