DFAE vs SCHD
Dimensional Emerging Core Equity Market ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. DFAE delivered stronger 1-year returns. DFAE offers more diversification with 6,482 holdings.
Side-by-Side Comparison
| Metric | DFAE | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.06% | |
| AUM | $9.8B | $108.7B | |
| Dividend Yield | 1.84% | 3.13% | |
| Holdings | 6,482 | 104 | |
| YTD Return | +17.79% | +28.63% | |
| 1Y Return | +33.08% | +32.53% | |
| 3Y Return (annualized) | +22.11% | +16.97% | |
| 5Y Return (annualized) | +10.31% | +10.47% | |
| Volatility (annualized) | 16.2% | 13.7% | |
| Max Drawdown | -32.2% | -33.4% | |
| Fund Family | Dimensional | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Dec 1, 2020 | Oct 20, 2011 |
DFAE vs SCHD Performance
Dimensional Emerging Core Equity Market ETF (DFAE) is a ETF from Dimensional and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year DFAE returned +33.08% while SCHD returned +32.53%. Year to date, DFAE is up 17.79% versus a gain of 28.63% for SCHD.
Over three years, DFAE compounded at +22.11% per year against +16.97% for SCHD; over five years the annualized figures are +10.31% and +10.47% respectively. Across the full 6-year window we track, SCHD has the edge at +11.63% annualized vs +10.00%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFAE has been the more volatile fund, with annualized monthly volatility of 16.2% compared with 13.7% 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 -32.2% for DFAE 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DFAE charges 0.35% per year while SCHD charges 0.06%. On a $10,000 position that is $35 vs $6 annually, a gap of $29 per year that compounds over a long holding period. On income, DFAE currently yields 1.84% against 3.13% for SCHD.
Holdings Overlap
DFAE and SCHD share 0 holdings out of 6426 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, DFAE or SCHD?
DFAE has an expense ratio of 0.35% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, DFAE or SCHD?
Over the past year DFAE returned +33.08% vs +32.53% for SCHD, so DFAE leads on 1-year performance. Over the longest common window we track (6 years), DFAE annualized +10.00% vs +11.63% for SCHD. Past performance does not guarantee future results.
Which is riskier, DFAE or SCHD?
DFAE has been the more volatile fund at 16.2% annualized versus 13.7% for SCHD. Worst drawdown: DFAE -32.2% vs SCHD -33.4%.
Should I hold both DFAE and SCHD?
DFAE and SCHD have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFAE and SCHD?
DFAE and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 6426 unique securities.
Which pays a higher dividend, DFAE or SCHD?
DFAE yields 1.84% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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