GEM vs SCHD
Goldman Sachs ActiveBeta Emerging Markets Equity ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. GEM delivered stronger 1-year returns. GEM offers more diversification with 722 holdings.
Side-by-Side Comparison
| Metric | GEM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.06% | |
| AUM | $1.7B | $103.7B | |
| Dividend Yield | 1.87% | 3.31% | |
| Holdings | 777 | 104 | |
| YTD Return | +18.02% | +24.26% | |
| 1Y Return | +34.93% | +31.38% | |
| 3Y Return (annualized) | +20.18% | +15.08% | |
| 5Y Return (annualized) | +7.46% | +9.72% | |
| Volatility (annualized) | 16.5% | 13.6% | |
| Max Drawdown | -37.0% | -33.4% | |
| Fund Family | Goldman Sachs Asset Management | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Sep 25, 2015 | Oct 20, 2011 |
GEM vs SCHD Performance
Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM) is a ETF from Goldman Sachs Asset Management and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year GEM returned +34.93% while SCHD returned +31.38%. Year to date, GEM is up 18.02% versus a gain of 24.26% for SCHD.
Over three years, GEM compounded at +20.18% per year against +15.08% for SCHD; over five years the annualized figures are +7.46% and +9.72% respectively. Across the full 11-year window we track, SCHD has the edge at +11.39% annualized vs +9.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
GEM has been the more volatile fund, with annualized monthly volatility of 16.5% 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 -37.0% for GEM 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GEM charges 0.35% per year while SCHD charges 0.06%. On a $10,000 position that is $35 vs $6 annually, a gap of $29 per year that compounds over a long holding period. On income, GEM currently yields 1.87% against 3.31% for SCHD.
Holdings Overlap
GEM and SCHD share 0 holdings out of 822 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, GEM or SCHD?
GEM has an expense ratio of 0.35% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, GEM or SCHD?
Over the past year GEM returned +34.93% vs +31.38% for SCHD, so GEM leads on 1-year performance. Over the longest common window we track (11 years), GEM annualized +9.10% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, GEM or SCHD?
GEM has been the more volatile fund at 16.5% annualized versus 13.6% for SCHD. Worst drawdown: GEM -37.0% vs SCHD -33.4%.
Should I hold both GEM and SCHD?
GEM and SCHD have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GEM and SCHD?
GEM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 822 unique securities.
Which pays a higher dividend, GEM or SCHD?
GEM yields 1.87% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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