ESN vs SCHD
Essential 40 Stock ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | ESN | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.70% | 0.06% | |
| AUM | $312M | $103.7B | |
| Dividend Yield | 0.79% | 3.31% | |
| Holdings | 43 | 104 | |
| YTD Return | +19.86% | +25.33% | |
| 1Y Return | +30.01% | +32.31% | |
| 3Y Return (annualized) | - | +15.40% | |
| 5Y Return (annualized) | - | +9.70% | |
| Volatility (annualized) | 10.9% | 13.6% | |
| Max Drawdown | -13.6% | -33.4% | |
| Fund Family | KKM Financial | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jun 11, 2024 | Oct 20, 2011 |
ESN vs SCHD Performance
Essential 40 Stock ETF (ESN) is a ETF from KKM Financial and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year ESN returned +30.01% while SCHD returned +32.31%. Year to date, ESN is up 19.86% versus a gain of 25.33% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 10.9% for ESN. 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 -13.6% for ESN 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ESN charges 0.70% per year while SCHD charges 0.06%. On a $10,000 position that is $70 vs $6 annually, a gap of $64 per year that compounds over a long holding period. On income, ESN currently yields 0.79% against 3.31% for SCHD.
Holdings Overlap
ESN and SCHD share 6 holdings out of 134 unique holdings combined, representing a 12.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ESN or SCHD?
ESN has an expense ratio of 0.70% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $64 per year of difference.
Which performed better, ESN or SCHD?
Over the past year ESN returned +30.01% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), ESN annualized +19.08% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, ESN or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 10.9% for ESN. Worst drawdown: ESN -13.6% vs SCHD -33.4%.
Should I hold both ESN and SCHD?
ESN and SCHD have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ESN and SCHD?
ESN and SCHD share 6 common holdings with a 12.5% weight overlap. Combined, they hold 134 unique securities.
Which pays a higher dividend, ESN or SCHD?
ESN yields 0.79% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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