What do the expense ratios for SCHD and SPHQ tell us about their costs?

SCHD has an expense ratio of 0.06%, while SPHQ's is 0.15%. This means SCHD charges less annually to manage investors' money. Over time, lower fees can help retain more of an investment's returns, assuming all other factors are equal. However, cost is just one aspect to consider alongside performance, strategy and personal financial goals when comparing these two ETFs.

How does the size of each fund, measured by net assets, influence investors?

SCHD holds $112.8 billion in net assets, making it significantly larger than SPHQ, which has $18.6 billion. Generally, a larger fund like SCHD can offer greater liquidity, meaning it might be easier to buy or sell shares without affecting the price substantially. Both sizes are considered robust for ETFs, but SCHD's scale may appeal more to investors prioritising high liquidity levels.

What is the difference in inception dates between SCHD and SPHQ?

SPHQ was launched on December 6, 2005, giving it a longer operational history compared to SCHD, which began trading on October 20, 2011. A longer track record allows investors to observe how SPHQ has performed over more market cycles and conditions. While this doesn't guarantee future results, it provides more data for assessing consistency and behaviour under various economic scenarios.

How do SCHD and SPHQ compare regarding their dividend yields?

SCHD currently offers a dividend yield of 3.11%, whereas SPHQ yields 1.03%. This indicates that SCHD pays out significantly more in dividends relative to its share price. For investors focused on generating income from their holdings, SCHD's higher yield might be more attractive. However, dividend yield alone doesn't indicate total return or capital appreciation potential.

Do SCHD and SPHQ share any common top holdings?

According to the data, there are no shared top ten holdings between SCHD and SPHQ. Their top portfolios differ greatly, with SCHD focusing on companies like Merck and Chevron, while SPHQ features names such as Mastercard and Apple. This lack of overlap suggests they are designed with different strategic aims in mind, potentially offering varied exposure within the broader US equity market.

What distinguishes the categories of these two ETFs?

SCHD is categorised as a 'Large Value' fund, which often targets companies considered undervalued. In contrast, SPHQ falls under 'Large Blend', indicating it likely includes a mix of both growth and value stocks selected based on quality metrics. The category hints at their underlying philosophies; SCHD may lean towards traditional value investing while SPHQ seeks to combine various factors through quality screening.

How might the index tracking differences affect these funds?

Both SCHD and SPHQ have indices tracked that are not available in the provided information. Without knowing the exact indexes, it's challenging to precisely evaluate their specific methodologies. Nevertheless, SCHD being tied to dividend equity and SPHQ to quality factors implies they follow distinct rulesets leading to their unique portfolios and performance characteristics in different market environments.

What type of investor might find each ETF suitable?

SCHD, with its high dividend yield and large value focus, typically attracts income-oriented investors seeking cash flow from established, financially sound companies. On the other hand, SPHQ, centred around quality factors within the S&P 500, may appeal to those who prioritise corporate fundamentals like stable earnings and lower leverage. Understanding these profiles helps align each ETF with various investment strategies.

What can we infer from the top holdings of each fund?

SCHD's top holdings include firms from sectors like healthcare (MRK), industrials (ABT) and consumer goods (PG), showing a spread across stable industries known for steady earnings and regular dividends. SPHQ, however, lists tech (AAPL), financials (MA) and healthcare firms, reflecting a tilt towards high-quality growth companies. These selections highlight SCHD's value orientation versus SPHQ's quality emphasis.

Why might one investor prefer SCHD over SPHQ in certain market cycles?

During periods where dividends are valued, such as lower-growth environments, SCHD’s 3.11% yield could provide an edge compared to SPHQ's 1.03%. The value stocks held by SCHD might also see relative strength if investors shift away from high-growth areas. However, preferences depend on individual risk tolerance, market expectations and investment objectives rather than being universally applicable.

How might each ETF react during a market downturn?

SPHQ, focusing on quality metrics, could potentially exhibit resilience due to its exposure to financially sound companies during downturns, as quality stocks often perform relatively well under stress. Conversely, SCHD might offer downside protection through its emphasis on high-dividend-paying companies. Nonetheless, predicting reactions to market downturns requires considering multiple factors beyond current portfolio compositions and yields.

What should beginners keep in mind when using these ETF comparisons?

Beginners should remember that while comparing key metrics like expense ratios, yields and top holdings is useful, these details don't predict future performance. It's important to consider broader financial goals, diversification needs and how each ETF fits into a complete portfolio. Consulting with a financial advisor may be beneficial for making decisions tailored to individual circumstances. This content is educational only.

SCHD vs SPHQ

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

Compare SCHD (US Dividend Equity ETF) and SPHQ (Invesco S&P 500 Quality ETF) side by side. This page reviews expense ratios, net assets, dividend yields and top holdings to show how each fund differs in focus. Educational content, not financial advice.

Compare SCHD (US Dividend Equity ETF) and SPHQ (Invesco S&P 500 Quality ETF) side by side. This page reviews expense ratios, net assets, dividend yields and top holdings to show how each fund differs ...

Fund Snapshot

Key Fund Metrics

Metric

0.06%

Expense Ratio

0.15%

3.11%

Dividend Yield

1.03%

$112.77B

Net Assets

$18.62B

102

Holdings

102

Oct 20, 2011

Inception Date

Dec 6, 2005

–

Index Tracked

–

Large Value

Fund Category

Large Blend

SCHD costs about $9.00 less per year for every $10,000 invested.

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Investment Analysis

SCHD

Pros

The fund charges a low expense ratio of 0.06 per cent, which helps to maximise net returns for investors over time.
With net assets of 112.8 billion dollars, the fund offers strong liquidity and substantial scale for institutional investors and retail clients alike.
The 3.11 per cent dividend yield provides attractive income for investors seeking cash flow from a large value equity strategy.

Considerations

The index tracked by the fund is not available in the provided data, creating uncertainty about the underlying methodology.
Sector weightings are not available, making it difficult to assess the fund's concentration across different areas of the market.
The fund has no shared top ten holdings with the quality benchmark, which may lead to differing performance profiles during certain market cycles.

SPHQ

Pros

The fund tracks a quality factor within the S&P 500, potentially offering lower volatility and more resilient earnings characteristics during market downturns.
With net assets of 18.6 billion dollars, the fund is sufficiently large to maintain good liquidity and trading spreads for most investors.
The fund has a long history, having launched in December 2005, allowing investors to observe its performance over a full market cycle.

Considerations

At an expense ratio of 0.15 per cent, the fund is more costly than many core equity ETFs, though still reasonable for a factor product.
The dividend yield of 1.03 per cent is quite low, making the fund unsuitable for income focused investors.
The index tracked by the fund is not available in the provided data, obscuring the exact quality metric used for security selection.

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About SCHD and SPHQ

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.

SPHQ (SPHQ)

Invesco S&P 500 Quality ETF (SPHQ) is a passively managed exchange-traded fund that seeks exposure to S&P 500 companies exhibiting quality characteristics such as stronger profitability, stable earnings and lower leverage. It provides investors with a rules-based, diversified way to tilt a large-cap US equity allocation towards firms deemed higher quality within the S&P 500. SPHQ trades like a stock on exchanges, offering intraday liquidity and the convenience of an ETF wrapper, but its share price and NAV can diverge slightly during the trading day. Investors should note this is not an actively managed stockpick — performance follows the underlying index and will rise or fall with market conditions. Consideration should be given to how a quality tilt fits within a broader portfolio, fees, tax treatment and the ETF’s liquidity; past performance does not guarantee future returns and values can go down as well as up.

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Following Charles Schwab's massive $20 billion stock buyback and dividend increase, this theme focuses on other financially robust companies that are similarly rewarding their investors. The strategy is to invest in firms with strong cash flows and a commitment to returning capital to shareholders.

Published: 25 July 2025

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SCHD vs SPHQ

Fund Snapshot