DFEM vs SCHD
DFEM vs SCHD
Dimensional Emerging Markets Core Equity 2 ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. DFEM offers more diversification with 6316 holdings.
Side-by-Side Comparison
| Metric | DFEM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.06% | |
| AUM | $8.9B | $103.7B | |
| Dividend Yield | 1.85% | 3.31% | |
| Holdings | 6,512 | 104 | |
| YTD Return | +16.85% | +24.26% | |
| 1Y Return | +31.38% | +31.38% | |
| 3Y Return (annualized) | +20.23% | +15.08% | |
| 5Y Return (annualized) | - | +9.72% | |
| Volatility (annualized) | 17.4% | 13.6% | |
| Max Drawdown | -20.8% | -33.4% | |
| Fund Family | Dimensional | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Apr 26, 2022 | Oct 20, 2011 |
DFEM vs SCHD Performance
Dimensional Emerging Markets Core Equity 2 ETF (DFEM) is a ETF from Dimensional and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year DFEM returned +31.38% while SCHD returned +31.38%. Year to date, DFEM is up 16.85% versus a gain of 24.26% for SCHD.
Over three years, DFEM compounded at +20.23% per year against +15.08% for SCHD. Across the full 4-year window we track, DFEM has the edge at +13.68% annualized vs +11.39%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFEM has been the more volatile fund, with annualized monthly volatility of 17.4% 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 -20.8% for DFEM 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DFEM charges 0.39% per year while SCHD charges 0.06%. On a $10,000 position that is $39 vs $6 annually, a gap of $33 per year that compounds over a long holding period. On income, DFEM currently yields 1.85% against 3.31% for SCHD.
Holdings Overlap
DFEM and SCHD share 0 holdings out of 6416 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, DFEM or SCHD?
DFEM has an expense ratio of 0.39% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $33 per year of difference.
Which performed better, DFEM or SCHD?
Over the past year DFEM returned +31.38% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), DFEM annualized +13.68% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, DFEM or SCHD?
DFEM has been the more volatile fund at 17.4% annualized versus 13.6% for SCHD. Worst drawdown: DFEM -20.8% vs SCHD -33.4%.
Should I hold both DFEM and SCHD?
DFEM and SCHD have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFEM and SCHD?
DFEM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 6416 unique securities.
Which pays a higher dividend, DFEM or SCHD?
DFEM yields 1.85% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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