AVEM vs SCHD
Avantis Emerging Markets Equity ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. AVEM delivered stronger 1-year returns. AVEM offers more diversification with 3,967 holdings.
Side-by-Side Comparison
| Metric | AVEM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.33% | 0.06% | |
| AUM | $27.4B | $108.7B | |
| Dividend Yield | 1.98% | 3.13% | |
| Holdings | 3,967 | 104 | |
| YTD Return | +19.50% | +26.54% | |
| 1Y Return | +34.76% | +30.90% | |
| 3Y Return (annualized) | +24.11% | +16.29% | |
| 5Y Return (annualized) | +10.57% | +9.65% | |
| Volatility (annualized) | 18.8% | 13.6% | |
| Max Drawdown | -36.0% | -33.4% | |
| Fund Family | Avantis Investors | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Sep 17, 2019 | Oct 20, 2011 |
AVEM vs SCHD Performance
Avantis Emerging Markets Equity ETF (AVEM) is a ETF from Avantis Investors and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year AVEM returned +34.76% while SCHD returned +30.90%. Year to date, AVEM is up 19.50% versus a gain of 26.54% for SCHD.
Over three years, AVEM compounded at +24.11% per year against +16.29% for SCHD; over five years the annualized figures are +10.57% and +9.65% respectively. Across the full 7-year window we track, AVEM has the edge at +11.99% annualized vs +11.51%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
AVEM has been the more volatile fund, with annualized monthly volatility of 18.8% 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 -36.0% for AVEM 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
AVEM charges 0.33% per year while SCHD charges 0.06%. On a $10,000 position that is $33 vs $6 annually, a gap of $27 per year that compounds over a long holding period. On income, AVEM currently yields 1.98% against 3.13% for SCHD.
Holdings Overlap
AVEM and SCHD share 0 holdings out of 1300 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, AVEM or SCHD?
AVEM has an expense ratio of 0.33% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $27 per year of difference.
Which performed better, AVEM or SCHD?
Over the past year AVEM returned +34.76% vs +30.90% for SCHD, so AVEM leads on 1-year performance. Over the longest common window we track (7 years), AVEM annualized +11.99% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, AVEM or SCHD?
AVEM has been the more volatile fund at 18.8% annualized versus 13.6% for SCHD. Worst drawdown: AVEM -36.0% vs SCHD -33.4%.
Should I hold both AVEM and SCHD?
AVEM and SCHD have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AVEM and SCHD?
AVEM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1300 unique securities.
Which pays a higher dividend, AVEM or SCHD?
AVEM yields 1.98% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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