AOM vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricAOMSCHDWinner
Expense Ratio0.15%0.06%
AUM$1.7B$103.7B
Dividend Yield2.98%3.31%
Holdings9104
YTD Return+5.90%+24.26%
1Y Return+11.53%+31.38%
3Y Return (annualized)+10.85%+15.08%
5Y Return (annualized)+4.75%+9.72%
Volatility (annualized)7.3%13.6%
Max Drawdown-20.0%-33.4%
Fund FamilyiShares by BlackRock (US)Charles Schwab Asset Management
CategoryAllocation/BalancedEquity
InceptionNov 4, 2008Oct 20, 2011

AOM vs SCHD Performance

iShares Core 40/60 Moderate Allocation ETF (AOM) 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 AOM returned +11.53% while SCHD returned +31.38%. Year to date, AOM is up 5.90% versus a gain of 24.26% for SCHD.

Over three years, AOM compounded at +10.85% per year against +15.08% for SCHD; over five years the annualized figures are +4.75% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +5.11%. 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 7.3% for AOM. 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 -20.0% for AOM 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 0.78. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

AOM charges 0.15% per year while SCHD charges 0.06%. On a $10,000 position that is $15 vs $6 annually, a gap of $9 per year that compounds over a long holding period. On income, AOM currently yields 2.98% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

AOM and SCHD share 0 holdings out of 108 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, AOM or SCHD?

AOM has an expense ratio of 0.15% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $9 per year of difference.

Which performed better, AOM or SCHD?

Over the past year AOM returned +11.53% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), AOM annualized +5.11% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, AOM or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 7.3% for AOM. Worst drawdown: AOM -20.0% vs SCHD -33.4%.

Should I hold both AOM and SCHD?

AOM and SCHD have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between AOM and SCHD?

AOM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 108 unique securities.

Which pays a higher dividend, AOM or SCHD?

AOM yields 2.98% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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