What is the fundamental difference between LVHD and SCHD regarding their investment categories?

LVHD is classified as a mid-cap value fund, while SCHD falls into the large value category. This distinction means LVHD focuses on companies with lower volatility and mid-sized market capitalisation, aiming for income with reduced risk. SCHD targets large-cap value stocks with strong dividend histories. Investors should note that mid-cap strategies may behave differently from large-cap ones during market shifts, offering different diversification profiles despite both being value-oriented funds.

How do the expense ratios of these two ETFs compare?

LVHD has an expense ratio of 0.27 per cent, whereas SCHD's expense ratio is 0.06 per cent. This means SCHD is significantly cheaper to hold, costing 21 basis points less annually. Over long periods, such a fee difference can compound, potentially impacting net returns. Lower expense ratios generally improve efficiency for long-term holders, but investors should also consider the specific strategies and yields offered by each fund alongside the costs.

What role does net asset value play in comparing LVHD and SCHD?

SCHD boasts massive net assets of $112.8 billion, ensuring high liquidity and tight bid-ask spreads. In contrast, LVHD has substantial but smaller net assets of $609 million. Larger asset bases generally indicate greater market confidence and ease of trading without significant price impact. While LVHD's size offers reasonable liquidity, SCHD's scale provides more robust trading conditions, which is crucial for investors prioritising frequent transactions or larger position sizes.

How do the dividend yields of LVHD and SCHD differ?

LVHD currently offers a dividend yield of 3.49 per cent, which is higher than SCHD's 3.11 per cent. This suggests LVHD provides slightly more immediate income per unit invested. However, yield alone does not guarantee total return. Investors must consider the underlying strategy; LVHD targets low-volatility high-dividend stocks, while SCHD focuses on sustainable growth in dividends. The choice depends on whether one prioritises higher current income or potential long-term dividend growth.

Which companies are common top holdings in both ETFs?

Both LVHD and SCHD include Coca-Cola (KO), Verizon (VZ), Chevron (CVX), and Procter & Gamble (PG) in their top ten holdings. This overlap indicates a shared focus on established, dividend-paying companies across consumer staples, telecom, and energy sectors. Despite this similarity, the weighting differs; for instance, KO is 2.89 per cent in LVHD and 4.27 per cent in SCHD. These common holdings suggest some correlation in performance based on these core stocks.

What are the unique top holdings that differentiate the two funds?

LVHD's top holdings include JPMorgan Chase (JNJ), Johnson & Johnson (JNJ), and Merck (MO), with no single stock exceeding 3 per cent. SCHD features more concentrated positions, such as Merck (MRK) at 4.89 per cent, Abbott (ABT) at 4.48 per cent, and Amgen (AMGN) at 4.28 per cent. This reflects SCHD's emphasis on healthcare and specific large-cap leaders, whereas LVHD appears more diversified across mid-cap value and low-volatility picks.

How does the inception date impact the analysis of these ETFs?

SCHD was established on October 20, 2011, providing over a decade of historical data for performance tracking. LVHD was launched on December 29, 2015, offering a shorter track record. Investors often value longer histories to assess how a fund performs across different market cycles. While LVHD's data is sufficient for recent analysis, SCHD's established record allows for deeper insight into long-term strategy resilience and consistency over varying economic conditions.

What is the primary investment focus of LVHD compared to SCHD?

LVHD focuses on low-volatility high-dividend strategies, aiming to reduce price fluctuations while generating income. It holds mid-cap value stocks, which may offer growth potential different from large caps. SCHD tracks a large value index, prioritising companies with strong financial health and consistent dividend payments. LVHD suits those seeking income with less price volatility, while SCHD appeals to those looking for established large-cap dividend growers with a longer track record.

How do the categories influence the risk profile of each fund?

As a mid-cap value fund, LVHD may face higher volatility than large-cap strategies, although its low-volatility designation aims to mitigate this. SCHD, being a large value fund, exposes investors to large-cap specific risks but generally benefits from the stability of major corporations. Mid-caps can offer higher growth potential but with increased sensitivity to economic cycles. Large caps provide steadiness but may have lower growth ceilings. The choice depends on risk tolerance.

What information is not available for these funds in the current data?

For both LVHD and SCHD, the specific index tracked and detailed sector weights are currently not available. Knowing the exact index helps investors understand the benchmark being followed, while sector weights reveal concentration risks in areas like healthcare, energy, or financials. Without this data, it is harder to precisely align these ETFs with broader asset allocation models or understand their exposure to specific industry downturns or upswings.

What does the fee difference mean for long-term holders?

The expense ratio difference between LVHD (0.27 per cent) and SCHD (0.06 per cent) amounts to 21 basis points. For a $10,000 investment, LVHD costs $27 annually compared to $6 for SCHD, a $21 difference each year. Over many years, compounded, this fee gap can significantly impact final portfolio value. Investors seeking cost efficiency might favour lower-fee funds, but they must balance this against the potential benefits of higher yield or specific strategy features.

What should beginners remember when comparing these ETFs?

Beginners should look beyond just the yield. While LVHD offers a higher 3.49 per cent yield compared to SCHD's 3.11 per cent, SCHD has lower fees, larger liquidity, and a longer history. Consider your goals: income stability, cost efficiency, or market cap exposure. Always review the total expense ratio, tracking differences, and holding structures. This comparison is for educational purposes only and does not constitute financial advice.

LVHD vs SCHD

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare Franklin U.S. Low Volatility High Dividend Index ETF and US Dividend Equity ETF Schwab. This page details their fees, holdings, dividends, and market tracking. Learn how LVHD and SCHD differ to understand each fund's structure and yield. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

LVHD

Metric

SCHD

0.27%

Expense Ratio

0.06%

3.49%

Dividend Yield

3.11%

$609.35M

Net Assets

$112.77B

117

Holdings

102

Dec 29, 2015

Inception Date

Oct 20, 2011

–

Index Tracked

–

Mid-Cap Value

Fund Category

Large Value

SCHD costs about $21.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	LVHD	SCHD
KOThe Coca-Cola Company	2.89%	4.27%
VZVerizon Communications Inc.	2.80%	3.95%
CVXChevron Corporation	2.76%	4.25%
PGThe Procter & Gamble Company	2.54%	4.02%

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Investment Analysis

LVHD

Pros

Provides exposure to a mid-cap value strategy with a dividend yield of 3.49 percent.
Maintains a moderate expense ratio of 0.27 percent for its low volatility focus.
Features substantial net assets of $609 million, indicating a reasonable level of liquidity.

Considerations

Higher expense ratio compared to many core equity ETFs, reducing potential net returns.
Category classification as mid-cap value may differ from investor expectations for low-volatility assets.
Limited recent inception data availability may complicate long-term performance tracking analysis.

SCHD

Pros

Low expense ratio of 0.06 percent enhances cost efficiency for long-term holdings.
Massive net assets of $112.8 billion ensure high liquidity and tight bid-ask spreads.
Established track record since October 2011 provides substantial historical performance data.

Considerations

Large value category may expose investors to different risks compared to broad market funds.
Dividend yield of 3.11 percent is slightly lower than some competing income strategies.
Potential concentration in large-cap stocks limits diversification across broader market capitalizations.

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About LVHD and SCHD

LVHD (LVHD)

Franklin U.S. Low Volatility High Dividend Index ETF (LVHD) is an exchange-traded fund that aims to track an index of US-listed companies selected for relatively high dividend yields and lower realised volatility. The fund blends an income orientation with a defensive tilt, favouring stocks that historically show steadier price behaviour while offering above-average distributions. As an ETF, LVHD provides intraday liquidity and transparent holdings, but it is subject to fees, tracking error and the usual market risks—dividends and capital values can fall as well as rise. Market capitalisation is not applicable to the ETF itself; consult the fund factsheet for current yield, expense ratio and top holdings. LVHD may suit investors seeking a tilt toward income with potentially smoother returns, but this is general educational information and not personal financial advice—suitability depends on your circumstances and investment objectives.

SCHD (SCHD)

SCHD (Schwab US Dividend Equity ETF) is an exchange‑traded fund that aims to provide exposure to high-quality U.S. companies that have a history of paying dividends. Managed by Charles Schwab, the ETF screens for firms with stable earnings, reasonable payout ratios and consistent dividend records, concentrating on large‑cap names across a range of sectors. Investors often use SCHD for income and as a core holding to capture dividend yield with the diversification and liquidity of an ETF. It is designed to be a low‑cost, transparent vehicle, though dividends and share prices can fall and past performance is not a guarantee of future results. Suitable for investors seeking income and long‑term total return, it may not fit those focused solely on capital growth or who require guarantees. As with any investment, consider costs, tax treatment and how it fits your wider portfolio before investing.

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LVHD vs SCHD

Fund Snapshot