ESGD vs SCHD
ESGD vs SCHD
iShares ESG Aware MSCI EAFE ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. ESGD offers more diversification with 352 holdings.
Side-by-Side Comparison
| Metric | ESGD | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.06% | |
| AUM | $11.7B | $103.7B | |
| Dividend Yield | 3.33% | 3.31% | |
| Holdings | 379 | 104 | |
| YTD Return | +13.84% | +24.26% | |
| 1Y Return | +24.64% | +31.38% | |
| 3Y Return (annualized) | +17.76% | +15.08% | |
| 5Y Return (annualized) | +9.33% | +9.72% | |
| Volatility (annualized) | 14.9% | 13.6% | |
| Max Drawdown | -36.3% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jun 28, 2016 | Oct 20, 2011 |
ESGD vs SCHD Performance
iShares ESG Aware MSCI EAFE ETF (ESGD) 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 ESGD returned +24.64% while SCHD returned +31.38%. Year to date, ESGD is up 13.84% versus a gain of 24.26% for SCHD.
Over three years, ESGD compounded at +17.76% per year against +15.08% for SCHD; over five years the annualized figures are +9.33% and +9.72% respectively. Across the full 10-year window we track, SCHD has the edge at +11.39% annualized vs +9.08%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ESGD has been the more volatile fund, with annualized monthly volatility of 14.9% 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 -36.3% for ESGD 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ESGD charges 0.20% per year while SCHD charges 0.06%. On a $10,000 position that is $20 vs $6 annually, a gap of $14 per year that compounds over a long holding period. On income, ESGD currently yields 3.33% against 3.31% for SCHD.
Holdings Overlap
ESGD and SCHD share 1 holdings out of 451 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in ESGD | Weight in SCHD | Difference |
|---|---|---|---|
| MRK | 0.36% | 4.32% | 3.96% |
Frequently Asked Questions
Which is cheaper, ESGD or SCHD?
ESGD has an expense ratio of 0.20% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, ESGD or SCHD?
Over the past year ESGD returned +24.64% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (10 years), ESGD annualized +9.08% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, ESGD or SCHD?
ESGD has been the more volatile fund at 14.9% annualized versus 13.6% for SCHD. Worst drawdown: ESGD -36.3% vs SCHD -33.4%.
Should I hold both ESGD and SCHD?
ESGD and SCHD have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ESGD and SCHD?
ESGD and SCHD share 1 common holdings with a 0.4% weight overlap. Combined, they hold 451 unique securities.
Which pays a higher dividend, ESGD or SCHD?
ESGD yields 3.33% while SCHD yields 3.31%, so ESGD currently pays the higher dividend yield.
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