EFAA vs SCHD
Invesco MSCI EAFE Income Advantage ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. EFAA offers more diversification with 708 holdings.
Side-by-Side Comparison
| Metric | EFAA | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.06% | |
| AUM | $644M | $108.7B | |
| Dividend Yield | 8.11% | 3.13% | |
| Holdings | 708 | 104 | |
| YTD Return | +10.74% | +26.54% | |
| 1Y Return | +18.70% | +30.90% | |
| 3Y Return (annualized) | - | +16.29% | |
| 5Y Return (annualized) | - | +9.65% | |
| Volatility (annualized) | 8.4% | 13.6% | |
| Max Drawdown | -12.0% | -33.4% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jul 17, 2024 | Oct 20, 2011 |
EFAA vs SCHD Performance
Invesco MSCI EAFE Income Advantage ETF (EFAA) is a ETF from Invesco (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year EFAA returned +18.70% while SCHD returned +30.90%. Year to date, EFAA is up 10.74% versus a gain of 26.54% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 8.4% for EFAA. 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 -12.0% for EFAA 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EFAA charges 0.39% per year while SCHD charges 0.06%. On a $10,000 position that is $39 vs $6 annually, a gap of $33 per year that compounds over a long holding period. On income, EFAA currently yields 8.11% against 3.13% for SCHD.
Holdings Overlap
EFAA and SCHD share 0 holdings out of 740 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, EFAA or SCHD?
EFAA has an expense ratio of 0.39% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $33 per year of difference.
Which performed better, EFAA or SCHD?
Over the past year EFAA returned +18.70% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), EFAA annualized +15.82% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, EFAA or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 8.4% for EFAA. Worst drawdown: EFAA -12.0% vs SCHD -33.4%.
Should I hold both EFAA and SCHD?
EFAA and SCHD have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EFAA and SCHD?
EFAA and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 740 unique securities.
Which pays a higher dividend, EFAA or SCHD?
EFAA yields 8.11% while SCHD yields 3.13%, so EFAA currently pays the higher dividend yield.
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