AAVM vs SCHD
Alpha Architect Global Factor Equity ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | AAVM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.06% | |
| AUM | $27M | $112.2B | |
| Dividend Yield | 1.81% | 3.13% | |
| Holdings | 6 | 103 | |
| YTD Return | +14.94% | +28.33% | |
| 1Y Return | +26.62% | +30.37% | |
| 3Y Return (annualized) | +17.91% | +16.64% | |
| 5Y Return (annualized) | +6.28% | +10.04% | |
| Volatility (annualized) | 12.8% | 13.6% | |
| Max Drawdown | -34.7% | -33.4% | |
| Fund Family | Alpha Architect | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | May 2, 2017 | Oct 20, 2011 |
AAVM vs SCHD Performance
Alpha Architect Global Factor Equity ETF (AAVM) is a ETF from Alpha Architect and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year AAVM returned +26.62% while SCHD returned +30.37%. Year to date, AAVM is up 14.94% versus a gain of 28.33% for SCHD.
Over three years, AAVM compounded at +17.91% per year against +16.64% for SCHD; over five years the annualized figures are +6.28% and +10.04% respectively. Across the full 9-year window we track, SCHD has the edge at +11.58% annualized vs +5.17%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 12.8% for AAVM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -34.7% for AAVM and -33.4% for SCHD. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
AAVM charges 0.38% per year while SCHD charges 0.06%. On a $10,000 position that is $38 vs $6 annually, a gap of $32 per year that compounds over a long holding period. On income, AAVM currently yields 1.81% against 3.13% for SCHD.
Holdings Overlap
AAVM and SCHD share 0 holdings out of 105 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, AAVM or SCHD?
AAVM has an expense ratio of 0.38% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, AAVM or SCHD?
Over the past year AAVM returned +26.62% vs +30.37% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), AAVM annualized +5.17% vs +11.58% for SCHD. Past performance does not guarantee future results.
Which is riskier, AAVM or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 12.8% for AAVM. Worst drawdown: AAVM -34.7% vs SCHD -33.4%.
Should I hold both AAVM and SCHD?
AAVM and SCHD have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AAVM and SCHD?
AAVM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.
Which pays a higher dividend, AAVM or SCHD?
AAVM yields 1.81% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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