EMB vs SCHD
EMB vs SCHD
iShares J.P. Morgan USD Emerging Markets Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. EMB offers more diversification with 251 holdings.
Side-by-Side Comparison
| Metric | EMB | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.06% | |
| AUM | $14.7B | $103.7B | |
| Dividend Yield | 5.02% | 3.31% | |
| Holdings | 616 | 104 | |
| YTD Return | +1.50% | +24.26% | |
| 1Y Return | +6.85% | +31.38% | |
| 3Y Return (annualized) | +8.79% | +15.08% | |
| 5Y Return (annualized) | +1.75% | +9.72% | |
| Volatility (annualized) | 11.3% | 13.6% | |
| Max Drawdown | -36.4% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Dec 17, 2007 | Oct 20, 2011 |
EMB vs SCHD Performance
iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) 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 EMB returned +6.85% while SCHD returned +31.38%. Year to date, EMB is up 1.50% versus a gain of 24.26% for SCHD.
Over three years, EMB compounded at +8.79% per year against +15.08% for SCHD; over five years the annualized figures are +1.75% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +1.12%. 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 11.3% for EMB. 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 -36.4% for EMB 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EMB 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, EMB currently yields 5.02% against 3.31% for SCHD.
Holdings Overlap
EMB and SCHD share 0 holdings out of 351 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, EMB or SCHD?
EMB 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, EMB or SCHD?
Over the past year EMB returned +6.85% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), EMB annualized +1.12% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, EMB or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 11.3% for EMB. Worst drawdown: EMB -36.4% vs SCHD -33.4%.
Should I hold both EMB and SCHD?
EMB and SCHD have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EMB and SCHD?
EMB and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 351 unique securities.
Which pays a higher dividend, EMB or SCHD?
EMB yields 5.02% while SCHD yields 3.31%, so EMB currently pays the higher dividend yield.
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