Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricDWATSCHDWinner
Expense Ratio1.83%0.06%
AUM$2M$103.7B
Dividend Yield10.89%3.31%
Holdings12104
YTD Return-4.04%+24.26%
1Y Return+0.06%+31.38%
3Y Return (annualized)+0.81%+15.08%
5Y Return (annualized)+8.05%+9.72%
Volatility (annualized)12.8%13.6%
Max Drawdown-34.7%-33.4%
Fund FamilyArrow Investment TrustCharles Schwab Asset Management
CategoryAllocation/BalancedEquity
InceptionOct 1, 2014Oct 20, 2011

DWAT vs SCHD Performance

Arrow DWA Tactical ETF (DWAT) is a ETF from Arrow Investment Trust and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year DWAT returned +0.06% while SCHD returned +31.38%. Year to date, DWAT is down 4.04% versus a gain of 24.26% for SCHD.

Over three years, DWAT compounded at +0.81% per year against +15.08% for SCHD; over five years the annualized figures are +8.05% and +9.72% respectively. Across the full 11-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

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 12.8% for DWAT. 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 -34.7% for DWAT 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 0.75. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

DWAT charges 1.83% per year while SCHD charges 0.06%. On a $10,000 position that is $183 vs $6 annually, a gap of $177 per year that compounds over a long holding period. On income, DWAT currently yields 10.89% against 3.31% for SCHD.

Frequently Asked Questions

Which is cheaper, DWAT or SCHD?

DWAT has an expense ratio of 1.83% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $177 per year of difference.

Which performed better, DWAT or SCHD?

Over the past year DWAT returned +0.06% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (11 years), DWAT annualized +4.84% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, DWAT or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 12.8% for DWAT. Worst drawdown: DWAT -34.7% vs SCHD -33.4%.

Should I hold both DWAT and SCHD?

DWAT and SCHD have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, DWAT or SCHD?

DWAT yields 10.89% while SCHD yields 3.31%, so DWAT currently pays the higher dividend yield.

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