ESMV vs SCHD
iShares ESG Optimized MSCI USA Min Vol Factor ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. ESMV offers more diversification with 160 holdings.
Side-by-Side Comparison
| Metric | ESMV | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.06% | |
| AUM | $8M | $108.7B | |
| Dividend Yield | 1.50% | 3.13% | |
| Holdings | 160 | 104 | |
| YTD Return | +11.89% | +28.70% | |
| 1Y Return | +11.49% | +32.27% | |
| 3Y Return (annualized) | +12.53% | +17.27% | |
| 5Y Return (annualized) | - | +10.23% | |
| Volatility (annualized) | 13.0% | 13.7% | |
| Max Drawdown | -19.8% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Nov 2, 2021 | Oct 20, 2011 |
ESMV vs SCHD Performance
iShares ESG Optimized MSCI USA Min Vol Factor ETF (ESMV) 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 ESMV returned +11.49% while SCHD returned +32.27%. Year to date, ESMV is up 11.89% versus a gain of 28.70% for SCHD.
Over three years, ESMV compounded at +12.53% per year against +17.27% for SCHD. Across the full 5-year window we track, SCHD has the edge at +11.63% annualized vs +6.71%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 13.0% for ESMV. 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 -19.8% for ESMV 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
ESMV charges 0.18% per year while SCHD charges 0.06%. On a $10,000 position that is $18 vs $6 annually, a gap of $12 per year that compounds over a long holding period. On income, ESMV currently yields 1.50% against 3.13% for SCHD.
Holdings Overlap
ESMV and SCHD share 17 holdings out of 240 unique holdings combined, representing a 11.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ESMV or SCHD?
ESMV has an expense ratio of 0.18% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, ESMV or SCHD?
Over the past year ESMV returned +11.49% vs +32.27% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), ESMV annualized +6.71% vs +11.63% for SCHD. Past performance does not guarantee future results.
Which is riskier, ESMV or SCHD?
SCHD has been the more volatile fund at 13.7% annualized versus 13.0% for ESMV. Worst drawdown: ESMV -19.8% vs SCHD -33.4%.
Should I hold both ESMV and SCHD?
ESMV 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 ESMV and SCHD?
ESMV and SCHD share 17 common holdings with a 11.8% weight overlap. Combined, they hold 240 unique securities.
Which pays a higher dividend, ESMV or SCHD?
ESMV yields 1.50% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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