ESML vs SCHD
ESML vs SCHD
iShares ESG Aware MSCI USA Small-Cap ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. ESML delivered stronger 1-year returns. ESML offers more diversification with 861 holdings.
Side-by-Side Comparison
| Metric | ESML | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.17% | 0.06% | |
| AUM | $2.8B | $103.7B | |
| Dividend Yield | 0.89% | 3.31% | |
| Holdings | 913 | 104 | |
| YTD Return | +19.74% | +24.26% | |
| 1Y Return | +33.77% | +31.38% | |
| 3Y Return (annualized) | +16.49% | +15.08% | |
| 5Y Return (annualized) | +8.30% | +9.72% | |
| Volatility (annualized) | 21.4% | 13.6% | |
| Max Drawdown | -42.0% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Apr 10, 2018 | Oct 20, 2011 |
ESML vs SCHD Performance
iShares ESG Aware MSCI USA Small-Cap ETF (ESML) 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 ESML returned +33.77% while SCHD returned +31.38%. Year to date, ESML is up 19.74% versus a gain of 24.26% for SCHD.
Over three years, ESML compounded at +16.49% per year against +15.08% for SCHD; over five years the annualized figures are +8.30% and +9.72% respectively. Across the full 8-year window we track, SCHD has the edge at +11.39% annualized vs +10.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ESML has been the more volatile fund, with annualized monthly volatility of 21.4% 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 -42.0% for ESML 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ESML charges 0.17% per year while SCHD charges 0.06%. On a $10,000 position that is $17 vs $6 annually, a gap of $11 per year that compounds over a long holding period. On income, ESML currently yields 0.89% against 3.31% for SCHD.
Holdings Overlap
ESML and SCHD share 24 holdings out of 937 unique holdings combined, representing a 2.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in ESML | Weight in SCHD | Difference |
|---|---|---|---|
| EWBC | 0.30% | 0.47% | 0.17% |
| DINO | 0.17% | 0.36% | 0.19% |
| APA | 0.18% | 0.33% | 0.15% |
| COLB | Pro | Pro | Pro |
| AFG | Pro | Pro | Pro |
| SWKS | Pro | Pro | Pro |
| BAH | Pro | Pro | Pro |
| ORI | Pro | Pro | Pro |
| M | Pro | Pro | Pro |
| MUR | Pro | Pro | Pro |
See all 10 holdings ESML shares with SCHD Exact weights in each fund and the difference, for every overlapping position. X-ray my whole portfolio$99/yr Pro · 7-day refund | |||
Frequently Asked Questions
Which is cheaper, ESML or SCHD?
ESML has an expense ratio of 0.17% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, ESML or SCHD?
Over the past year ESML returned +33.77% vs +31.38% for SCHD, so ESML leads on 1-year performance. Over the longest common window we track (8 years), ESML annualized +10.58% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, ESML or SCHD?
ESML has been the more volatile fund at 21.4% annualized versus 13.6% for SCHD. Worst drawdown: ESML -42.0% vs SCHD -33.4%.
Should I hold both ESML and SCHD?
ESML and SCHD have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ESML and SCHD?
ESML and SCHD share 24 common holdings with a 2.3% weight overlap. Combined, they hold 937 unique securities.
Which pays a higher dividend, ESML or SCHD?
ESML yields 0.89% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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