DFAU vs SCHD
Dimensional US Core Equity Market ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. DFAU offers more diversification with 2,124 holdings.
Side-by-Side Comparison
| Metric | DFAU | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.12% | 0.06% | |
| AUM | $12.9B | $108.7B | |
| Dividend Yield | 0.91% | 3.13% | |
| Holdings | 2,124 | 104 | |
| YTD Return | +13.50% | +28.70% | |
| 1Y Return | +22.72% | +32.27% | |
| 3Y Return (annualized) | +21.48% | +17.27% | |
| 5Y Return (annualized) | +12.59% | +10.23% | |
| Volatility (annualized) | 15.1% | 13.7% | |
| Max Drawdown | -23.6% | -33.4% | |
| Fund Family | Dimensional | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Nov 17, 2020 | Oct 20, 2011 |
DFAU vs SCHD Performance
Dimensional US Core Equity Market ETF (DFAU) is a ETF from Dimensional and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year DFAU returned +22.72% while SCHD returned +32.27%. Year to date, DFAU is up 13.50% versus a gain of 28.70% for SCHD.
Over three years, DFAU compounded at +21.48% per year against +17.27% for SCHD; over five years the annualized figures are +12.59% and +10.23% respectively. Across the full 6-year window we track, DFAU has the edge at +15.49% annualized vs +11.63%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFAU has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -23.6% for DFAU 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFAU charges 0.12% per year while SCHD charges 0.06%. On a $10,000 position that is $12 vs $6 annually, a gap of $6 per year that compounds over a long holding period. On income, DFAU currently yields 0.91% against 3.13% for SCHD.
Holdings Overlap
DFAU and SCHD share 90 holdings out of 2111 unique holdings combined, representing a 7.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DFAU or SCHD?
DFAU has an expense ratio of 0.12% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, DFAU or SCHD?
Over the past year DFAU returned +22.72% vs +32.27% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), DFAU annualized +15.49% vs +11.63% for SCHD. Past performance does not guarantee future results.
Which is riskier, DFAU or SCHD?
DFAU has been the more volatile fund at 15.1% annualized versus 13.7% for SCHD. Worst drawdown: DFAU -23.6% vs SCHD -33.4%.
Should I hold both DFAU and SCHD?
DFAU and SCHD have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFAU and SCHD?
DFAU and SCHD share 90 common holdings with a 7.6% weight overlap. Combined, they hold 2111 unique securities.
Which pays a higher dividend, DFAU or SCHD?
DFAU yields 0.91% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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