DEMZ vs SCHD
Democratic Large Cap Core 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 104 holdings.
Side-by-Side Comparison
| Metric | DEMZ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.06% | |
| AUM | $68M | $108.7B | |
| Dividend Yield | 0.89% | 3.13% | |
| Holdings | 44 | 104 | |
| YTD Return | +11.35% | +26.50% | |
| 1Y Return | +19.22% | +31.25% | |
| 3Y Return (annualized) | +21.92% | +16.34% | |
| 5Y Return (annualized) | +12.13% | +10.10% | |
| Volatility (annualized) | 16.2% | 13.6% | |
| Max Drawdown | -27.2% | -33.4% | |
| Fund Family | DEMZ | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Nov 2, 2020 | Oct 20, 2011 |
DEMZ vs SCHD Performance
Democratic Large Cap Core ETF (DEMZ) is a ETF from DEMZ and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year DEMZ returned +19.22% while SCHD returned +31.25%. Year to date, DEMZ is up 11.35% versus a gain of 26.50% for SCHD.
Over three years, DEMZ compounded at +21.92% per year against +16.34% for SCHD; over five years the annualized figures are +12.13% and +10.10% respectively. Across the full 6-year window we track, DEMZ has the edge at +16.64% annualized vs +11.50%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DEMZ has been the more volatile fund, with annualized monthly volatility of 16.2% 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 -27.2% for DEMZ 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DEMZ charges 0.45% per year while SCHD charges 0.06%. On a $10,000 position that is $45 vs $6 annually, a gap of $39 per year that compounds over a long holding period. On income, DEMZ currently yields 0.89% against 3.13% for SCHD.
Holdings Overlap
DEMZ and SCHD share 3 holdings out of 139 unique holdings combined, representing a 4.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DEMZ or SCHD?
DEMZ has an expense ratio of 0.45% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $39 per year of difference.
Which performed better, DEMZ or SCHD?
Over the past year DEMZ returned +19.22% vs +31.25% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), DEMZ annualized +16.64% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, DEMZ or SCHD?
DEMZ has been the more volatile fund at 16.2% annualized versus 13.6% for SCHD. Worst drawdown: DEMZ -27.2% vs SCHD -33.4%.
Should I hold both DEMZ and SCHD?
DEMZ and SCHD have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DEMZ and SCHD?
DEMZ and SCHD share 3 common holdings with a 4.3% weight overlap. Combined, they hold 139 unique securities.
Which pays a higher dividend, DEMZ or SCHD?
DEMZ yields 0.89% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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