DFAR vs SCHD
DFAR vs SCHD
Dimensional US Real Estate ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. DFAR offers more diversification with 124 holdings.
Side-by-Side Comparison
| Metric | DFAR | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.06% | |
| AUM | $1.8B | $103.7B | |
| Dividend Yield | 2.69% | 3.31% | |
| Holdings | 130 | 104 | |
| YTD Return | +16.75% | +24.26% | |
| 1Y Return | +17.89% | +31.38% | |
| 3Y Return (annualized) | +10.56% | +15.08% | |
| 5Y Return (annualized) | - | +9.72% | |
| Volatility (annualized) | 18.3% | 13.6% | |
| Max Drawdown | -32.3% | -33.4% | |
| Fund Family | Dimensional | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Feb 23, 2022 | Oct 20, 2011 |
DFAR vs SCHD Performance
Dimensional US Real Estate ETF (DFAR) is a ETF from Dimensional and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year DFAR returned +17.89% while SCHD returned +31.38%. Year to date, DFAR is up 16.75% versus a gain of 24.26% for SCHD.
Over three years, DFAR compounded at +10.56% per year against +15.08% for SCHD. Across the full 4-year window we track, SCHD has the edge at +11.39% annualized vs +3.92%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFAR has been the more volatile fund, with annualized monthly volatility of 18.3% 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 -32.3% for DFAR 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
DFAR charges 0.19% per year while SCHD charges 0.06%. On a $10,000 position that is $19 vs $6 annually, a gap of $13 per year that compounds over a long holding period. On income, DFAR currently yields 2.69% against 3.31% for SCHD.
Holdings Overlap
DFAR and SCHD share 0 holdings out of 224 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, DFAR or SCHD?
DFAR has an expense ratio of 0.19% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, DFAR or SCHD?
Over the past year DFAR returned +17.89% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), DFAR annualized +3.92% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, DFAR or SCHD?
DFAR has been the more volatile fund at 18.3% annualized versus 13.6% for SCHD. Worst drawdown: DFAR -32.3% vs SCHD -33.4%.
Should I hold both DFAR and SCHD?
DFAR 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 DFAR and SCHD?
DFAR and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 224 unique securities.
Which pays a higher dividend, DFAR or SCHD?
DFAR yields 2.69% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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