DFSD vs SCHD
DFSD vs SCHD
Dimensional Short-Duration Fixed Income ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. DFSD offers more diversification with 1125 holdings.
Side-by-Side Comparison
| Metric | DFSD | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.16% | 0.06% | |
| AUM | $7.1B | $103.7B | |
| Dividend Yield | 4.18% | 3.31% | |
| Holdings | 1,500 | 104 | |
| YTD Return | +1.02% | +24.26% | |
| 1Y Return | +3.07% | +31.38% | |
| 3Y Return (annualized) | +5.19% | +15.08% | |
| 5Y Return (annualized) | - | +9.72% | |
| Volatility (annualized) | 2.7% | 13.6% | |
| Max Drawdown | -8.4% | -33.4% | |
| Fund Family | Dimensional | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Nov 15, 2021 | Oct 20, 2011 |
DFSD vs SCHD Performance
Dimensional Short-Duration Fixed Income ETF (DFSD) is a ETF from Dimensional and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year DFSD returned +3.07% while SCHD returned +31.38%. Year to date, DFSD is up 1.02% versus a gain of 24.26% for SCHD.
Over three years, DFSD compounded at +5.19% per year against +15.08% for SCHD. Across the full 5-year window we track, SCHD has the edge at +11.39% annualized vs +2.53%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 2.7% for DFSD. 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 -8.4% for DFSD 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DFSD charges 0.16% per year while SCHD charges 0.06%. On a $10,000 position that is $16 vs $6 annually, a gap of $10 per year that compounds over a long holding period. On income, DFSD currently yields 4.18% against 3.31% for SCHD.
Holdings Overlap
DFSD and SCHD share 0 holdings out of 1225 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, DFSD or SCHD?
DFSD has an expense ratio of 0.16% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, DFSD or SCHD?
Over the past year DFSD returned +3.07% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), DFSD annualized +2.53% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, DFSD or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 2.7% for DFSD. Worst drawdown: DFSD -8.4% vs SCHD -33.4%.
Should I hold both DFSD and SCHD?
DFSD and SCHD have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFSD and SCHD?
DFSD and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1225 unique securities.
Which pays a higher dividend, DFSD or SCHD?
DFSD yields 4.18% while SCHD yields 3.31%, so DFSD currently pays the higher dividend yield.
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