ETEC vs SCHD
iShares Breakthrough Environmental Solutions 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 | ETEC | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.47% | 0.06% | |
| AUM | $4M | $103.7B | |
| Dividend Yield | 0.43% | 3.31% | |
| Holdings | 61 | 104 | |
| YTD Return | +8.72% | +25.33% | |
| 1Y Return | +28.81% | +32.31% | |
| 3Y Return (annualized) | +5.10% | +15.40% | |
| 5Y Return (annualized) | - | +9.70% | |
| Volatility (annualized) | 24.4% | 13.6% | |
| Max Drawdown | -39.7% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Mar 28, 2023 | Oct 20, 2011 |
ETEC vs SCHD Performance
iShares Breakthrough Environmental Solutions ETF (ETEC) 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 ETEC returned +28.81% while SCHD returned +32.31%. Year to date, ETEC is up 8.72% versus a gain of 25.33% for SCHD.
Over three years, ETEC compounded at +5.10% per year against +15.40% for SCHD. Across the full 3-year window we track, SCHD has the edge at +11.45% annualized vs +3.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ETEC has been the more volatile fund, with annualized monthly volatility of 24.4% 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 -39.7% for ETEC 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ETEC charges 0.47% per year while SCHD charges 0.06%. On a $10,000 position that is $47 vs $6 annually, a gap of $41 per year that compounds over a long holding period. On income, ETEC currently yields 0.43% against 3.31% for SCHD.
Holdings Overlap
ETEC and SCHD share 0 holdings out of 148 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ETEC or SCHD?
ETEC has an expense ratio of 0.47% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, ETEC or SCHD?
Over the past year ETEC returned +28.81% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), ETEC annualized +3.06% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, ETEC or SCHD?
ETEC has been the more volatile fund at 24.4% annualized versus 13.6% for SCHD. Worst drawdown: ETEC -39.7% vs SCHD -33.4%.
Should I hold both ETEC and SCHD?
ETEC and SCHD have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ETEC and SCHD?
ETEC and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 148 unique securities.
Which pays a higher dividend, ETEC or SCHD?
ETEC yields 0.43% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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