EFA vs SCHD
iShares MSCI EAFE ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. EFA offers more diversification with 704 holdings.
Side-by-Side Comparison
| Metric | EFA | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.32% | 0.06% | |
| AUM | $80.2B | $108.7B | |
| Dividend Yield | 3.17% | 3.13% | |
| Holdings | 704 | 104 | |
| YTD Return | +13.90% | +28.70% | |
| 1Y Return | +22.32% | +31.07% | |
| 3Y Return (annualized) | +19.04% | +16.88% | |
| 5Y Return (annualized) | +9.64% | +10.20% | |
| Volatility (annualized) | 16.6% | 13.7% | |
| Max Drawdown | -60.0% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Aug 14, 2001 | Oct 20, 2011 |
EFA vs SCHD Performance
iShares MSCI EAFE ETF (EFA) 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 EFA returned +22.32% while SCHD returned +31.07%. Year to date, EFA is up 13.90% versus a gain of 28.70% for SCHD.
Over three years, EFA compounded at +19.04% per year against +16.88% for SCHD; over five years the annualized figures are +9.64% and +10.20% respectively. Across the full 15-year window we track, SCHD has the edge at +11.62% annualized vs +6.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EFA has been the more volatile fund, with annualized monthly volatility of 16.6% compared with 13.7% 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 -60.0% for EFA 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
EFA charges 0.32% per year while SCHD charges 0.06%. On a $10,000 position that is $32 vs $6 annually, a gap of $26 per year that compounds over a long holding period. On income, EFA currently yields 3.17% against 3.13% for SCHD.
Holdings Overlap
EFA and SCHD share 1 holdings out of 770 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in EFA | Weight in SCHD | Difference |
|---|---|---|---|
| MRK | 0.10% | 4.26% | 4.16% |
Frequently Asked Questions
Which is cheaper, EFA or SCHD?
EFA has an expense ratio of 0.32% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, EFA or SCHD?
Over the past year EFA returned +22.32% vs +31.07% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), EFA annualized +6.85% vs +11.62% for SCHD. Past performance does not guarantee future results.
Which is riskier, EFA or SCHD?
EFA has been the more volatile fund at 16.6% annualized versus 13.7% for SCHD. Worst drawdown: EFA -60.0% vs SCHD -33.4%.
Should I hold both EFA and SCHD?
EFA and SCHD have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EFA and SCHD?
EFA and SCHD share 1 common holdings with a 0.1% weight overlap. Combined, they hold 770 unique securities.
Which pays a higher dividend, EFA or SCHD?
EFA yields 3.17% while SCHD yields 3.13%, so EFA currently pays the higher dividend yield.
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