An ETF is an exchange-traded fund. It is a basket of assets, such as stocks, that trades on an exchange like a stock. Investors buy shares in the fund, giving them fractional ownership of all assets within the basket.

What is an expense ratio?

An expense ratio is the annual fee for managing a fund, deducted from its assets. Lower fees mean more of your investment stays with you. The difference between the 0.60% fee and 0.06% fee represents a substantial variation in cost.

What does dividend yield mean?

Dividend yield shows the annual payout from a fund as a percentage of its current share price. A higher yield, like 11.50%, suggests a larger income stream, while a lower yield, like 3.11%, indicates a smaller one.

How do fees compare for QYLD and SCHD?

QYLD has an expense ratio of 0.60%, which is typical for a covered call strategy. SCHD has a much lower expense ratio of 0.06%. Over time, the 0.54 percentage point difference in fees can significantly impact the total cost of holding each fund.

What is the main difference in fund structure?

QYLD uses a covered call strategy on the Nasdaq 100, selling options to generate income. SCHD invests directly in US dividend-paying stocks focused on value. This means QYLD uses derivatives for income, while SCHD aims for growth and dividends from companies.

How do the top holdings of each fund differ?

The top holdings show a clear difference. QYLD's largest positions are in technology and semiconductor companies, such as NVDA and AAPL. SCHD's top holdings are in more defensive sectors like healthcare and consumer staples, including MRK and KO.

How does each fund's market exposure differ?

QYLD targets the Nasdaq 100, which is heavily weighted towards technology and growth companies. SCHD focuses on large-cap US value stocks, typically offering more exposure to established, stable sectors like industrials and utilities. Their market performance is therefore linked to different economic drivers.

Why might QYLD's high yield be different?

QYLD's 11.50% yield is generated from selling call options, not just company dividends. This can provide high income but may also cap potential growth in rising markets. SCHD's 3.11% yield comes from the dividends of its underlying stocks, which is more typical of a dividend ETF.

How do I choose between these two funds?

Your choice depends on your investment goals. If you seek high income and are comfortable with a derivatives strategy and tech concentration, QYLD aligns with that. If you prefer low costs, a focus on value stocks, and diversification across stable sectors, SCHD might be suitable.

What does the asset size tell me?

SCHD has substantially more assets at $112.8 billion compared to QYLD's $8.5 billion. A larger asset base generally means higher trading liquidity, which makes it easier to buy or sell shares. However, the smaller size of QYLD is still significant and does not necessarily indicate a problem.

QYLD vs SCHD

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

Compare QYLD (Global X Nasdaq 100 Covered Call ETF) and SCHD (US Dividend Equity ETF). This page analyses fees, holdings and dividends, showing how each tracks its market. QYLD targets 0.60% cost with high yield from derivatives; SCHD offers 0.06% for value. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

QYLD

Metric

SCHD

0.60%

Expense Ratio

0.06%

11.50%

Dividend Yield

3.11%

$8.48B

Net Assets

$112.77B

104

Holdings

102

Dec 12, 2013

Inception Date

Oct 20, 2011

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Index Tracked

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Derivative Income

Fund Category

Large Value

SCHD costs about $54.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

QYLD

Pros

The fund's expense ratio of 0.60 per cent is competitive for a covered call strategy.
It has accumulated substantial net assets of 8.5 billion dollars since its 2013 inception.
It offers a high dividend yield of 11.50 per cent, appealing to income-seeking investors.

Considerations

The fund’s top ten holdings are heavily concentrated in technology and semiconductor stocks.
The 0.60 per cent expense ratio is significantly higher than traditional equity ETFs.
The index methodology is not available, making it difficult to assess the underlying structure.

SCHD

Pros

The fund boasts a very low expense ratio of 0.06 per cent for long-term holdings.
With 112.8 billion dollars in net assets, it provides strong liquidity and stability for investors.
Its top ten holdings display a balanced diversification across healthcare, consumer and energy sectors.

Considerations

The dividend yield of 3.11 per cent is modest compared to higher income alternatives.
The index methodology is not available, obscuring the specific criteria used for stock selection.
The fund's concentration in large value stocks may underperform during growth-led market rallies.

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About QYLD and SCHD

QYLD (QYLD)

The Global X Nasdaq 100 Covered Call ETF (QYLD) is a derivative income fund designed to generate regular distributions for investors. Rather than simply tracking the price of the Nasdaq 100, it employs a covered call strategy, holding the underlying index components while selling monthly call options against them. This approach aims to capture premium income, which is reflected in its current dividend yield of 11.50%. The fund holds 104 holdings and carries an expense ratio of 0.60%. While the strategy can provide attractive income, it may limit capital appreciation potential during strong market rallies, as gains are often capped by the sold options. Investors should note that values can fall as well as rise, and income distributions are not guaranteed.

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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QYLD vs SCHD

Fund Snapshot