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ETF Comparison

QYLD vs SCHD: Which Is the Better Pick in 2026?

A head-to-head comparison of Global X Nasdaq 100 Covered Call ETF and Schwab U.S. Dividend Equity ETF covering yield, cost, risk, and income potential.

Updated September 30, 2026

How these figures are calculated: methodology.

Best for

  • QYLDInvestors who want to maximize current income — roughly 11.43%, generated by selling options premium.
  • SCHDInvestors who want a quality-dividend tilt rather than the whole market.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

QYLD has lagged SCHD over the trailing twelve months, posting a 23.12% total return against 24.24%. The lead holds up over 10 years too: SCHD has compounded at 12.52% a year, against 10.05% for QYLD. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Dec 2013Volatility Sharpe Sortino Max drawdown
QYLD14.80%23.12%16.57%9.16%10.05%9.01%13.4%0.821.18-19.1%
SCHD20.19%24.24%15.79%9.12%12.52%11.83%13.2%0.781.13-16.1%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 30, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Dec 2013” measures every fund from December 12, 2013 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Distribution rate and SEC yield

MetricQYLDSCHD
Forward distribution rate11.43%3.28%
Trailing 12-month yield11.49%3.24%
30-day SEC yield0.02%—

Total return (price change plus reinvested distributions) is the Total returns section above. A 30-day SEC yield can sit far from the headline distribution rate; both numbers are the fund's own published fields.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricQYLDSCHD
Full nameGlobal X Nasdaq 100 Covered Call ETFSchwab U.S. Dividend Equity ETF
IssuerGlobal XSchwab
Underlying indexCboe Nasdaq-100 BuyWrite V2 IndexDow Jones U.S. Dividend 100 Index
Last Close$18.55 as of September 30, 2026$32.53 as of September 30, 2026
Distribution rate11.43%3.28%
Trailing 12-month yield11.49%3.24%
30-day SEC yield0.02%—
Distribution Safety Score™ 83100
Safety-Adjusted Yield 9.49%3.28%
Expense ratio0.60%0.06%
AUM$8.51B$110B
Distribution frequencyMonthlyQuarterly
ObjectiveSeeks monthly income by tracking the Cboe Nasdaq-100 BuyWrite Index, holding the Nasdaq-100 stocks and writing a succession of one-month at-the-money covered call options on the index.Seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100 Index, which measures the performance of high dividend yielding stocks issued by U.S. companies with a record of consistently paying dividends, selected for fundamental strength relative to their peers based on financial ratios.
Asset classEquityEquity
Inception date12/11/201310/20/2011
Beta0.490.56
Last dividend$0.1767$0.2665
Ex-dividend date09/21/202609/23/2026

Bottom lineChoose QYLD if you want to maximize current income — roughly 11.43%, generated by selling options premium. Choose SCHD if you want a quality-dividend tilt rather than the whole market. There's no free lunch: QYLD's payout comes from selling options, which caps upside and can erode the share price over time, while SCHD keeps full price exposure.

How the risk works

Read this before the income numbers below: the strategy mechanics on this page shape what those payouts can cost you.

  • Capped upside and premium dependence. QYLD generates income by selling options, which trades away part of a strong rally in exchange for premium. Distributions can include return of capital, and a payout the underlying assets cannot sustain shows up as NAV erosion over time — the big yield number is not free.

Learn the mechanics: Return of capital, explained · NAV erosion, explained

Model this comparison:
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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

Global X
ETFs117
Total AUM$94.9B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Global X is known for developing thematic and alternative investment ETFs with a strong emphasis on income-generating strategies. Their 37-fund lineup spans diverse categories including covered call funds, SuperDividend income products, digital assets, commodities, and sector-specific investments, alongside traditional bond and risk-managed income options. Notable tickers like DIV, MLPA, and BCCC reflect their specialization in high-yield and alternative income strategies, positioning them as a provider focused on investors seeking yield-oriented and thematically-driven exposure.

See our curated list of related YouTube videos on QYLD.

See all Global X ETFs
Schwab
ETFs33
Total AUM$612B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Schwab is a major provider of low-cost, broad-based ETFs known for making investing accessible to individual investors through its discount brokerage platform. The issuer's fund lineup spans multiple categories including core index funds, dividend and income-focused strategies, factor-based approaches, international exposure, fixed income, and digital assets, with popular core holdings like SCHB (U.S. broad market) and SCHD (dividend appreciation) alongside more specialized thematic offerings. Schwab's ETF suite is characterized by its breadth across asset classes and investment styles, competitive expense ratios, and integration with its retail brokerage ecosystem.

See our curated list of related YouTube videos on SCHD.

See all Schwab ETFs

Want to go deeper?

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Quick verdict

QYLD (Global X Nasdaq 100 Covered Call ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both dividend ETFs, but they take different approaches.

QYLD offers the higher yield at 11.43% vs 3.28% for SCHD. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

SCHD is cheaper with an expense ratio of 0.06% compared to 0.60%.

They have different reference exposures: QYLD is linked to Cboe Nasdaq-100 BuyWrite V2 Index while SCHD is linked to Dow Jones U.S. Dividend 100 Index, which means their performance drivers differ.

SCHD is the larger fund by assets ($110B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose QYLD

Global X Nasdaq 100 Covered Call ETF

  • Want to maximize current income — QYLD distributes roughly 11.43% from selling options premium, vs 3.28% for SCHD.
  • Are comfortable with an options-income strategy — a large payout in exchange for capped upside.

Choose SCHD

Schwab U.S. Dividend Equity ETF

  • Want a quality-dividend tilt — screened payers rather than the broad index.
  • Want to keep costs low — a 0.06% expense ratio vs 0.60% for QYLD.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

Deep dive

Yield & income

On a $10,000 investment, QYLD would generate roughly $95.25 cash per distribution, while SCHD would produce $82.00 cash per distribution, at current distribution rates.

QYLD yield11.43%
SCHD yield3.28%
Cash diff on $10K$13.25

Cost & efficiency

Over 10 years on $10,000, QYLD would cost approximately $600 in fees vs $60 for SCHD (simplified, not compounded). The $540.00 difference may be offset by yield or performance.

QYLD ER0.60%
SCHD ER0.06%

Strategy & risk

QYLD tracks Cboe Nasdaq-100 BuyWrite V2 Index with a covered call approach, while SCHD tracks Dow Jones U.S. Dividend 100 Index. Beta is 0.49 for QYLD and 0.56 for SCHD, making QYLD the less volatile of the two by this measure.

QYLD beta0.49
SCHD beta0.56

Fund details

QYLD is managed by Global X (launched 12/11/2013) with $8.51B in assets. SCHD is managed by Schwab (launched 10/20/2011) with $110B in assets.

QYLD AUM$8.51B
SCHD AUM$110B
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Frequently asked questions

What is the current distribution rate for QYLD and SCHD?

QYLD currently distributes 11.43% and SCHD 3.28%, based on fund data updated September 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is QYLD or SCHD better for dividend income?

It depends on your goals. QYLD currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between QYLD and SCHD?

QYLD (Global X Nasdaq 100 Covered Call ETF) tracks Cboe Nasdaq-100 BuyWrite V2 Index with a covered call approach, while SCHD (Schwab U.S. Dividend Equity ETF) tracks Dow Jones U.S. Dividend 100 Index. They are issued by Global X and Schwab respectively.

Can I hold both QYLD and SCHD?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is QYLD or SCHD safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — SCHD scores 100, QYLD scores 83, so SCHD's payout currently looks the more resilient of the two. No score makes an investment risk-free — treat this as a screening signal, not a guarantee, and the leverage, options-income, or crypto caveats flagged on this page apply regardless of score.

Which has lower fees, QYLD or SCHD?

QYLD has an expense ratio of 0.60% while SCHD charges 0.06%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in QYLD vs SCHD generate?

At current rates, $10,000 in QYLD would generate roughly $95.25 cash per distribution ($1,143.00 annually). The same in SCHD would produce about $82.00 cash per distribution ($328.00 annually).

Which has performed better historically, QYLD or SCHD?

QYLD has lagged SCHD over the trailing twelve months, posting a 23.12% total return against 24.24%. The lead holds up over 10 years too: SCHD has compounded at 12.52% a year, against 10.05% for QYLD. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

QYLD vs SCHD — at a glance

Generated September 26, 2026.

Overview

QYLD and SCHD are both equity ETFs focused on income generation, but they pursue fundamentally different strategies. large-cap dividend payers selected for yield and dividend-growth history. The key distinction: QYLD sacrifices upside capture to boost current yield through options, while SCHD prioritizes dividend stability and capital appreciation alongside income. A 0.49 beta reflects this dampening: when the Nasdaq-100 rises, QYLD lags because written calls are called away at strike. SCHD, with a 0.56 beta, moves closer to the market and captures broader large-cap gains.

Who each is best for

QYLD: Fits investors who prioritize current monthly cash flow over capital appreciation and can tolerate capped upside on a tech-heavy equity portfolio—especially those seeking income supplement from a concentrated growth-stock exposure.

SCHD: Fits investors seeking genuine dividend growth and total return from a diversified basket of large-cap U.S. dividend aristocrats, with a lower cost structure and willingness to accept lower current yield in exchange for capital stability and appreciation potential.

Key risks to know

  • NAV erosion at extreme distribution rates. QYLD's 11.43% yield is unsustainable if underlying Nasdaq-100 price appreciation and dividends don't cover it; over time this creates pressure on net asset value, particularly in flat or down markets. SCHD's 3.28% is closer to underlying dividend growth and poses less erosion risk.
  • Capped upside and opportunity cost. QYLD's covered call structure systematically locks in gains at strike, preventing investors from participating in sharp rallies. Over a multi-year bull market, this drag compounds, potentially underperforming an unhedged Nasdaq-100 tracker by a wide margin.
  • Concentration in technology. QYLD tracks the Nasdaq-100, a heavily tech-weighted index; a sector rotation away from growth stocks would hit both funds but QYLD's leverage to that concentration is compounded by its income generation strategy. SCHD's broader dividend-quality filter and large-cap focus reduces single-sector dependency.
  • Options and derivative risk for QYLD. Covered call mechanics introduce basis risk, timing mismatches between call expiration and dividend dates, and potential forced sales at inopportune moments. SCHD carries no derivative overlay.
  • Interest rate sensitivity. Both hold equities, but SCHD's larger allocation to dividend-paying financials and dividend-growth companies may carry higher sensitivity to rising rates than QYLD's tech-heavy index. QYLD's dampened beta may cushion some of that move.

Bottom line

If you want maximum current income and accept that capital gains will be capped, QYLD delivers outsized yield through a disciplined options strategy. If you prioritize dividend growth, lower costs, and capital appreciation alongside income—and can live with a much lower distribution rate—SCHD's simpler, more liquid approach stands out. Past performance doesn't predict future results; the yield gap between them reflects a structural tradeoff, not a sign that either will outperform the other over time.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

How covered-call funds work How to read a fund's stats The covered-call opportunity cost

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These comparisons follow the Dividend Vision methodology.