EEM vs SCHD
EEM vs SCHD
iShares MSCI Emerging Markets ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. EEM delivered stronger 1-year returns. EEM offers more diversification with 1109 holdings.
Side-by-Side Comparison
| Metric | EEM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.72% | 0.06% | |
| AUM | $28.6B | $103.7B | |
| Dividend Yield | 1.63% | 3.31% | |
| Holdings | 1,224 | 104 | |
| YTD Return | +17.32% | +24.26% | |
| 1Y Return | +35.26% | +31.38% | |
| 3Y Return (annualized) | +20.82% | +15.08% | |
| 5Y Return (annualized) | +7.23% | +9.72% | |
| Volatility (annualized) | 20.8% | 13.6% | |
| Max Drawdown | -68.8% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Apr 7, 2003 | Oct 20, 2011 |
EEM vs SCHD Performance
iShares MSCI Emerging Markets ETF (EEM) is a ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year EEM returned +35.26% while SCHD returned +31.38%. Year to date, EEM is up 17.32% versus a gain of 24.26% for SCHD.
Over three years, EEM compounded at +20.82% per year against +15.08% for SCHD; over five years the annualized figures are +7.23% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +8.49%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EEM has been the more volatile fund, with annualized monthly volatility of 20.8% 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 -68.8% for EEM 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EEM charges 0.72% per year while SCHD charges 0.06%. On a $10,000 position that is $72 vs $6 annually, a gap of $66 per year that compounds over a long holding period. On income, EEM currently yields 1.63% against 3.31% for SCHD.
Holdings Overlap
EEM and SCHD share 0 holdings out of 1209 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, EEM or SCHD?
EEM has an expense ratio of 0.72% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $66 per year of difference.
Which performed better, EEM or SCHD?
Over the past year EEM returned +35.26% vs +31.38% for SCHD, so EEM leads on 1-year performance. Over the longest common window we track (15 years), EEM annualized +8.49% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, EEM or SCHD?
EEM has been the more volatile fund at 20.8% annualized versus 13.6% for SCHD. Worst drawdown: EEM -68.8% vs SCHD -33.4%.
Should I hold both EEM and SCHD?
EEM and SCHD have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EEM and SCHD?
EEM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1209 unique securities.
Which pays a higher dividend, EEM or SCHD?
EEM yields 1.63% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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