DFAW vs SCHD
Dimensional World Equity ETF vs Schwab US Dividend Equity ETF
Which is better, DFAW or SCHD?
Large Cap Blend against Large Cap Value.
SCHD has a lower expense ratio. DFAW led over 3Y and the full window, SCHD over 1Y.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | DFAW | SCHD |
|---|---|---|
| Expense Ratio | 0.24% | 0.06%Best |
| AUM | $1.7B | $112.1B |
| Dividend Yield | 1.20% | 3.00% |
| Holdings | 5 | 103 |
| YTD Return | +13.56% | +24.23%Best |
| 1Y Return | +19.26% | +27.90%Best |
| 3Y Return (annualized) | +21.23%Best | +15.55% |
| 5Y Return (annualized) | - | +9.97% |
| Volatility (annualized) | 12.0%Best | 13.3% |
| Max Drawdown | -16.9% | -16.1%Best |
| $10,000 over 3 years | $17,817Best | $15,996 |
| Top 10 Weight | - | 41.8% |
| Fund Family | Dimensional | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Sep 26, 2023 | Oct 20, 2011 |
Volatility and max drawdown, and the $10,000 over 3 years row, are measured over the window both funds cover: Sep 27, 2023 to Sep 17, 2026 (3 years).
DFAW vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 3 years both funds cover.
DFAW vs SCHD Performance
Dimensional World Equity ETF (DFAW) is an ETF from Dimensional and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year DFAW returned +19.26% while SCHD returned +27.90%. Year to date, DFAW is up 13.56% versus a gain of 24.23% for SCHD.
Over three years, DFAW compounded at +21.23% per year against +15.55% for SCHD.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.3% compared with 12.0% for DFAW. 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 -16.9% for DFAW and -16.1% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFAW charges 0.24% per year while SCHD charges 0.06%. On a $10,000 position that is $24 vs $6 annually, a gap of $18 per year that compounds over a long holding period. On income, DFAW currently yields 1.20% against 3.00% for SCHD.
Holdings Overlap
We hold position weights for 5 holdings in DFAW and 100 in SCHD, totalling 100.0% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 5 positions we hold weights for in DFAW and 100 in SCHD, against full books of 5 and 103.
What only one of them owns
Measured across the 5 and 100 positions we hold weights for.
SCHD holds 99 positions DFAW does not, 99.9% of the fund.
Largest: MRK 4.77%, AMGN 4.70%, ABT 4.69%, KO 4.17%, CVX 4.02%
You are not choosing between two funds in isolation.
Whichever of DFAW and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, DFAW or SCHD?
DFAW has an expense ratio of 0.24% while SCHD charges 0.06%. SCHD is the cheaper option, by $18 a year on a $10,000 investment.
Which performed better, DFAW or SCHD?
Over the past year DFAW returned +19.26% vs +27.90% for SCHD, so SCHD leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFAW or SCHD?
SCHD has been the more volatile fund at 13.3% annualized versus 12.0% for DFAW. Worst drawdown: DFAW -16.9% vs SCHD -16.1%.
Should I hold both DFAW and SCHD?
DFAW and SCHD have a monthly-return correlation of 0.70, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, DFAW or SCHD?
DFAW yields 1.20% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.
Is SCHD better than DFAW?
SCHD has a lower expense ratio. DFAW led over 3Y and the full window, SCHD over 1Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.