AAXJ vs SCHD
iShares MSCI All Country Asia ex Japan ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. AAXJ delivered stronger 1-year returns. AAXJ offers more diversification with 820 holdings.
Side-by-Side Comparison
| Metric | AAXJ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.72% | 0.06% | |
| AUM | $3.7B | $103.7B | |
| Dividend Yield | 1.29% | 3.31% | |
| Holdings | 956 | 104 | |
| YTD Return | +18.74% | +25.62% | |
| 1Y Return | +36.27% | +32.62% | |
| 3Y Return (annualized) | +22.23% | +15.58% | |
| 5Y Return (annualized) | +7.06% | +9.63% | |
| Volatility (annualized) | 20.5% | 13.6% | |
| Max Drawdown | -49.4% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Aug 13, 2008 | Oct 20, 2011 |
AAXJ vs SCHD Performance
iShares MSCI All Country Asia ex Japan ETF (AAXJ) is a ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year AAXJ returned +36.27% while SCHD returned +32.62%. Year to date, AAXJ is up 18.74% versus a gain of 25.62% for SCHD.
Over three years, AAXJ compounded at +22.23% per year against +15.58% for SCHD; over five years the annualized figures are +7.06% and +9.63% respectively. Across the full 15-year window we track, SCHD has the edge at +11.47% annualized vs +5.22%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
AAXJ has been the more volatile fund, with annualized monthly volatility of 20.5% compared with 13.6% for SCHD. 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 -49.4% for AAXJ 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
AAXJ charges 0.72% per year while SCHD charges 0.06%. On a $10,000 position that is $72 vs $6 annually, a gap of $66 per year that compounds over a long holding period. On income, AAXJ currently yields 1.29% against 3.31% for SCHD.
Holdings Overlap
AAXJ and SCHD share 0 holdings out of 920 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, AAXJ or SCHD?
AAXJ has an expense ratio of 0.72% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $66 per year of difference.
Which performed better, AAXJ or SCHD?
Over the past year AAXJ returned +36.27% vs +32.62% for SCHD, so AAXJ leads on 1-year performance. Over the longest common window we track (15 years), AAXJ annualized +5.22% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, AAXJ or SCHD?
AAXJ has been the more volatile fund at 20.5% annualized versus 13.6% for SCHD. Worst drawdown: AAXJ -49.4% vs SCHD -33.4%.
Should I hold both AAXJ and SCHD?
AAXJ and SCHD have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AAXJ and SCHD?
AAXJ and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 920 unique securities.
Which pays a higher dividend, AAXJ or SCHD?
AAXJ yields 1.29% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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