DFAX vs SCHD
Dimensional World ex US Core Equity 2 ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. DFAX offers more diversification with 10131 holdings.
Side-by-Side Comparison
| Metric | DFAX | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.28% | 0.06% | |
| AUM | $11.9B | $103.7B | |
| Dividend Yield | 2.34% | 3.31% | |
| Holdings | 10,538 | 104 | |
| YTD Return | +15.00% | +25.62% | |
| 1Y Return | +28.59% | +32.62% | |
| 3Y Return (annualized) | +20.76% | +15.58% | |
| 5Y Return (annualized) | +10.16% | +9.63% | |
| Volatility (annualized) | 15.3% | 13.6% | |
| Max Drawdown | -28.1% | -33.4% | |
| Fund Family | Dimensional | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Mar 6, 2008 | Oct 20, 2011 |
DFAX vs SCHD Performance
Dimensional World ex US Core Equity 2 ETF (DFAX) is a ETF from Dimensional and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year DFAX returned +28.59% while SCHD returned +32.62%. Year to date, DFAX is up 15.00% versus a gain of 25.62% for SCHD.
Over three years, DFAX compounded at +20.76% per year against +15.58% for SCHD; over five years the annualized figures are +10.16% and +9.63% respectively. Across the full 5-year window we track, SCHD has the edge at +11.47% annualized vs +10.16%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFAX has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -28.1% for DFAX 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFAX charges 0.28% per year while SCHD charges 0.06%. On a $10,000 position that is $28 vs $6 annually, a gap of $22 per year that compounds over a long holding period. On income, DFAX currently yields 2.34% against 3.31% for SCHD.
Holdings Overlap
DFAX and SCHD share 0 holdings out of 10231 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, DFAX or SCHD?
DFAX has an expense ratio of 0.28% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, DFAX or SCHD?
Over the past year DFAX returned +28.59% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), DFAX annualized +10.16% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, DFAX or SCHD?
DFAX has been the more volatile fund at 15.3% annualized versus 13.6% for SCHD. Worst drawdown: DFAX -28.1% vs SCHD -33.4%.
Should I hold both DFAX and SCHD?
DFAX and SCHD have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFAX and SCHD?
DFAX and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 10231 unique securities.
Which pays a higher dividend, DFAX or SCHD?
DFAX yields 2.34% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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