DFJ vs SCHD
WisdomTree Japan SmallCap Dividend Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. DFJ offers more diversification with 794 holdings.
Side-by-Side Comparison
| Metric | DFJ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.58% | 0.06% | |
| AUM | $382M | $103.7B | |
| Dividend Yield | 2.65% | 3.31% | |
| Holdings | 804 | 104 | |
| YTD Return | +17.73% | +24.26% | |
| 1Y Return | +26.55% | +31.38% | |
| 3Y Return (annualized) | +20.87% | +15.08% | |
| 5Y Return (annualized) | +11.36% | +9.72% | |
| Volatility (annualized) | 14.3% | 13.6% | |
| Max Drawdown | -46.7% | -33.4% | |
| Fund Family | WisdomTree Investments | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jun 16, 2006 | Oct 20, 2011 |
DFJ vs SCHD Performance
WisdomTree Japan SmallCap Dividend Fund (DFJ) is a ETF from WisdomTree Investments and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year DFJ returned +26.55% while SCHD returned +31.38%. Year to date, DFJ is up 17.73% versus a gain of 24.26% for SCHD.
Over three years, DFJ compounded at +20.87% per year against +15.08% for SCHD; over five years the annualized figures are +11.36% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +4.84%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFJ has been the more volatile fund, with annualized monthly volatility of 14.3% 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 -46.7% for DFJ 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DFJ charges 0.58% per year while SCHD charges 0.06%. On a $10,000 position that is $58 vs $6 annually, a gap of $52 per year that compounds over a long holding period. On income, DFJ currently yields 2.65% against 3.31% for SCHD.
Holdings Overlap
DFJ and SCHD share 0 holdings out of 894 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, DFJ or SCHD?
DFJ has an expense ratio of 0.58% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $52 per year of difference.
Which performed better, DFJ or SCHD?
Over the past year DFJ returned +26.55% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), DFJ annualized +4.84% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, DFJ or SCHD?
DFJ has been the more volatile fund at 14.3% annualized versus 13.6% for SCHD. Worst drawdown: DFJ -46.7% vs SCHD -33.4%.
Should I hold both DFJ and SCHD?
DFJ and SCHD have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFJ and SCHD?
DFJ and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 894 unique securities.
Which pays a higher dividend, DFJ or SCHD?
DFJ yields 2.65% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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