ESGG vs SCHD
FlexShares STOXX Global ESG Select Index Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. ESGG offers more diversification with 729 holdings.
Side-by-Side Comparison
| Metric | ESGG | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.42% | 0.06% | |
| AUM | $116M | $108.7B | |
| Dividend Yield | 1.29% | 3.13% | |
| Holdings | 729 | 104 | |
| YTD Return | +16.72% | +26.50% | |
| 1Y Return | +24.67% | +31.25% | |
| 3Y Return (annualized) | +21.87% | +16.34% | |
| 5Y Return (annualized) | +12.54% | +10.10% | |
| Volatility (annualized) | 18.2% | 13.6% | |
| Max Drawdown | -32.3% | -33.4% | |
| Fund Family | Flexshares Trust | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jul 13, 2016 | Oct 20, 2011 |
ESGG vs SCHD Performance
FlexShares STOXX Global ESG Select Index Fund (ESGG) is a ETF from Flexshares Trust and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year ESGG returned +24.67% while SCHD returned +31.25%. Year to date, ESGG is up 16.72% versus a gain of 26.50% for SCHD.
Over three years, ESGG compounded at +21.87% per year against +16.34% for SCHD; over five years the annualized figures are +12.54% and +10.10% respectively. Across the full 10-year window we track, ESGG has the edge at +13.95% annualized vs +11.50%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ESGG has been the more volatile fund, with annualized monthly volatility of 18.2% 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 -32.3% for ESGG 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ESGG charges 0.42% per year while SCHD charges 0.06%. On a $10,000 position that is $42 vs $6 annually, a gap of $36 per year that compounds over a long holding period. On income, ESGG currently yields 1.29% against 3.13% for SCHD.
Holdings Overlap
ESGG and SCHD share 9 holdings out of 767 unique holdings combined, representing a 3.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ESGG or SCHD?
ESGG has an expense ratio of 0.42% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, ESGG or SCHD?
Over the past year ESGG returned +24.67% vs +31.25% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (10 years), ESGG annualized +13.95% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, ESGG or SCHD?
ESGG has been the more volatile fund at 18.2% annualized versus 13.6% for SCHD. Worst drawdown: ESGG -32.3% vs SCHD -33.4%.
Should I hold both ESGG and SCHD?
ESGG and SCHD have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ESGG and SCHD?
ESGG and SCHD share 9 common holdings with a 3.9% weight overlap. Combined, they hold 767 unique securities.
Which pays a higher dividend, ESGG or SCHD?
ESGG yields 1.29% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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