ESG vs SCHD
Northern Trust STOXX US ESG Select ETF vs Schwab US Dividend Equity ETF
Which is better, ESG or SCHD?
Large Cap Blend against Large Cap Value.
SCHD has a lower expense ratio. ESG led over 3Y, 5Y and the full window, SCHD over 1Y.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | ESG | SCHD |
|---|---|---|
| Expense Ratio | 0.32% | 0.06%Best |
| AUM | $137M | $112.2B |
| Dividend Yield | 0.87% | 3.13% |
| Holdings | 254 | 103 |
| YTD Return | +15.78% | +28.59%Best |
| 1Y Return | +22.43% | +31.77%Best |
| 3Y Return (annualized) | +19.56%Best | +16.70% |
| 5Y Return (annualized) | +11.66%Best | +10.09% |
| Volatility (annualized) | 17.4% | 15.1%Best |
| Max Drawdown | -32.5%Best | -33.4% |
| $10,000 over 5 years | $17,358Best | $16,171 |
| Top 10 Weight | 41.5%Tie | 41.5%Tie |
| Fund Family | Northern Trust Asset Management | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Jul 13, 2016 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Jul 14, 2016 to Sep 3, 2026 (10.1 years).
ESG vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 10.1 years both funds cover.
ESG vs SCHD Performance
Northern Trust STOXX US ESG Select ETF (ESG) is an ETF from Northern Trust Asset Management and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year ESG returned +22.43% while SCHD returned +31.77%. Year to date, ESG is up 15.78% versus a gain of 28.59% for SCHD.
Over three years, ESG compounded at +19.56% per year against +16.70% for SCHD; over five years the annualized figures are +11.66% and +10.09% respectively. Across the full 10-year window we track, ESG has the edge at +15.03% annualized vs +11.41%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ESG has been the more volatile fund, with annualized monthly volatility of 17.4% compared with 15.1% 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 -32.5% for ESG and -33.4% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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
ESG 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, ESG currently yields 0.87% against 3.13% for SCHD.
Holdings Overlap
8.6% of ESG's money is in holdings SCHD also owns. 50.9% of SCHD's money is in holdings ESG also owns.
The two portfolios partly overlap.
22 positions in common, counted across the 250 positions we hold weights for in ESG and 100 in SCHD, against full books of 254 and 103.
What only one of them owns
Our book lists 77 positions for SCHD that do not appear in our book for ESG (49.0% of the fund), and 216 for ESG that do not appear in SCHD (88.3%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in ESG | Weight in SCHD | Difference |
|---|---|---|---|
| MRKMerck & Company Inc | 1.33% | 4.26% | 2.93% |
| KOCoca Cola Co. | 1.37% | 4.20% | 2.83% |
| ABTAbbott Laboratories | 0.66% | 4.70% | 4.04% |
| PGProcter & Gamble Company | 1.34% | 3.96% | 2.62% |
| AMGNAmgen Inc. | 0.30% | 4.62% | 4.32% |
| PEPPepsico Inc. | 0.63% | 3.71% | 3.08% |
| VZVerizon Communic | 0.38% | 3.84% | 3.46% |
| BMYBristol-Myers Squibb Co. | 0.27% | 3.31% | 3.04% |
| ADPAutomatic Data Processing, Inc. | 0.37% | 2.72% | 2.35% |
| QCOMQualcomm Inc. | 0.46% | 2.55% | 2.09% |
50.9% of SCHD is already inside ESG.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, ESG or SCHD?
ESG has an expense ratio of 0.32% while SCHD charges 0.06%. SCHD is the cheaper option, by $26 a year on a $10,000 investment.
Which performed better, ESG or SCHD?
Over the past year ESG returned +22.43% vs +31.77% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (10 years), ESG annualized +15.03% vs +11.41% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ESG or SCHD?
ESG has been the more volatile fund at 17.4% annualized versus 15.1% for SCHD. Worst drawdown: ESG -32.5% vs SCHD -33.4%.
Should I hold both ESG and SCHD?
ESG and SCHD have a monthly-return correlation of 0.75, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between ESG and SCHD?
50.9% of SCHD's money is in holdings ESG also owns. 50.9% of SCHD's is in holdings ESG also owns. They hold 22 positions in common, counted across the 250 positions we hold weights for in ESG and 100 in SCHD.
Which pays a higher dividend, ESG or SCHD?
ESG yields 0.87% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
Is SCHD better than ESG?
SCHD has a lower expense ratio. ESG led over 3Y, 5Y and the full window, SCHD over 1Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.