ESML vs SCHD
iShares ESG Aware MSCI USA Small-Cap ETF vs Schwab US Dividend Equity ETF
Which is better, ESML or SCHD?
Small Cap Blend against Large Cap Value.
SCHD has a lower expense ratio. ESML led over 3Y, SCHD over 1Y, 5Y and the full window. ESML is less concentrated, with 4.5% of the fund in its ten largest positions against 41.8%.
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 | ESML | SCHD |
|---|---|---|
| Expense Ratio | 0.17% | 0.06%Best |
| AUM | $2.8B | $112.1B |
| Dividend Yield | 0.91% | 3.00% |
| Holdings | 913 | 103 |
| YTD Return | +14.07% | +23.46%Best |
| 1Y Return | +16.60% | +27.20%Best |
| 3Y Return (annualized) | +16.53%Best | +15.41% |
| 5Y Return (annualized) | +7.65% | +10.16%Best |
| Volatility (annualized) | 21.3% | 16.3%Best |
| Max Drawdown | -42.0% | -33.4%Best |
| $10,000 over 5 years | $14,457 | $16,223Best |
| Top 10 Weight | 4.5%Best | 41.8% |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Value |
| Inception | Apr 10, 2018 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Apr 12, 2018 to Sep 18, 2026 (8.4 years).
ESML 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 8.4 years both funds cover.
ESML vs SCHD Performance
iShares ESG Aware MSCI USA Small-Cap ETF (ESML) is an ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year ESML returned +16.60% while SCHD returned +27.20%. Year to date, ESML is up 14.07% versus a gain of 23.46% for SCHD.
Over three years, ESML compounded at +16.53% per year against +15.41% for SCHD; over five years the annualized figures are +7.65% and +10.16% respectively. Across the full 8-year window we track, SCHD has the edge at +11.42% annualized vs +9.80%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ESML has been the more volatile fund, with annualized monthly volatility of 21.3% compared with 16.3% 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 what each fund did in the worst stretch of the window measured above.
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 0.91% against 3.00% for SCHD.
Holdings Overlap
2.8% of ESML's money is in holdings SCHD also owns. 3.6% of SCHD's money is in holdings ESML also owns.
SCHD and ESML share little of their money.
25 positions in common, counted across the 854 positions we hold weights for in ESML and 100 in SCHD, against full books of 913 and 103.
What only one of them owns
Our book lists 74 positions for SCHD that do not appear in our book for ESML (96.3% of the fund), and 809 for ESML that do not appear in SCHD (90.9%).
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 ESML | Weight in SCHD | Difference |
|---|---|---|---|
| EWBCEast West Bancorp, Inc. | 0.29% | 0.42% | 0.13% |
| DINOHF Sinclair Corp | 0.24% | 0.38% | 0.14% |
| APAApa Corp | 0.24% | 0.37% | 0.13% |
| AFGAmerican Financial Group Inc/Oh | 0.14% | 0.24% | 0.10% |
| SWKSSkyworks Solutions Inc. | 0.13% | 0.25% | 0.12% |
| COLBColumbia Banking System Inc Common Stock | 0.15% | 0.21% | 0.06% |
| BAHBooz Allen Hamilton Holding Corp. | 0.12% | 0.22% | 0.10% |
| ORIOld Republic International Corp | 0.06% | 0.23% | 0.17% |
| MURMurphy Oil Corp | 0.14% | 0.12% | 0.02% |
| RHIRobert Half International Inc. | 0.13% | 0.11% | 0.02% |
You are not choosing between two funds in isolation.
Whichever of ESML and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $11 a year on a $10,000 investment.
Which performed better, ESML or SCHD?
Over the past year ESML returned +16.60% vs +27.20% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (8 years), ESML annualized +9.80% vs +11.42% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ESML or SCHD?
ESML has been the more volatile fund at 21.3% annualized versus 16.3% 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 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 ESML and SCHD?
3.6% of SCHD's money is in holdings ESML also owns. 3.6% of SCHD's is in holdings ESML also owns. They hold 25 positions in common, counted across the 854 positions we hold weights for in ESML and 100 in SCHD.
Which pays a higher dividend, ESML or SCHD?
ESML yields 0.91% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.
Is SCHD better than ESML?
SCHD has a lower expense ratio. ESML led over 3Y, SCHD over 1Y, 5Y and the full window. ESML is less concentrated, with 4.5% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.