ESGU vs SCHD
iShares ESG Aware MSCI USA ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. ESGU offers more diversification with 282 holdings.
Side-by-Side Comparison
| Metric | ESGU | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.06% | |
| AUM | $18.4B | $108.7B | |
| Dividend Yield | 0.94% | 3.13% | |
| Holdings | 282 | 104 | |
| YTD Return | +12.99% | +28.70% | |
| 1Y Return | +20.40% | +31.07% | |
| 3Y Return (annualized) | +21.24% | +16.88% | |
| 5Y Return (annualized) | +11.61% | +10.20% | |
| Volatility (annualized) | 15.9% | 13.7% | |
| Max Drawdown | -33.9% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Dec 1, 2016 | Oct 20, 2011 |
ESGU vs SCHD Performance
iShares ESG Aware MSCI USA ETF (ESGU) 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 ESGU returned +20.40% while SCHD returned +31.07%. Year to date, ESGU is up 12.99% versus a gain of 28.70% for SCHD.
Over three years, ESGU compounded at +21.24% per year against +16.88% for SCHD; over five years the annualized figures are +11.61% and +10.20% respectively. Across the full 10-year window we track, ESGU has the edge at +14.49% annualized vs +11.62%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ESGU has been the more volatile fund, with annualized monthly volatility of 15.9% compared with 13.7% 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 -33.9% for ESGU 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ESGU charges 0.15% per year while SCHD charges 0.06%. On a $10,000 position that is $15 vs $6 annually, a gap of $9 per year that compounds over a long holding period. On income, ESGU currently yields 0.94% against 3.13% for SCHD.
Holdings Overlap
ESGU and SCHD share 29 holdings out of 340 unique holdings combined, representing a 7.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ESGU or SCHD?
ESGU has an expense ratio of 0.15% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, ESGU or SCHD?
Over the past year ESGU returned +20.40% vs +31.07% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (10 years), ESGU annualized +14.49% vs +11.62% for SCHD. Past performance does not guarantee future results.
Which is riskier, ESGU or SCHD?
ESGU has been the more volatile fund at 15.9% annualized versus 13.7% for SCHD. Worst drawdown: ESGU -33.9% vs SCHD -33.4%.
Should I hold both ESGU and SCHD?
ESGU and SCHD have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ESGU and SCHD?
ESGU and SCHD share 29 common holdings with a 7.3% weight overlap. Combined, they hold 340 unique securities.
Which pays a higher dividend, ESGU or SCHD?
ESGU yields 0.94% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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