HEDJ vs SCHD
WisdomTree Europe Hedged Equity Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. HEDJ offers more diversification with 133 holdings.
Side-by-Side Comparison
| Metric | HEDJ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.58% | 0.06% | |
| AUM | $1.9B | $108.7B | |
| Dividend Yield | 1.78% | 3.13% | |
| Holdings | 133 | 104 | |
| YTD Return | +8.32% | +28.63% | |
| 1Y Return | +15.59% | +32.53% | |
| 3Y Return (annualized) | +15.23% | +16.97% | |
| 5Y Return (annualized) | +10.58% | +10.47% | |
| Volatility (annualized) | 15.5% | 13.7% | |
| Max Drawdown | -38.2% | -33.4% | |
| Fund Family | WisdomTree Investments | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Dec 31, 2009 | Oct 20, 2011 |
HEDJ vs SCHD Performance
WisdomTree Europe Hedged Equity Fund (HEDJ) is a ETF from WisdomTree Investments and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year HEDJ returned +15.59% while SCHD returned +32.53%. Year to date, HEDJ is up 8.32% versus a gain of 28.63% for SCHD.
Over three years, HEDJ compounded at +15.23% per year against +16.97% for SCHD; over five years the annualized figures are +10.58% and +10.47% respectively. Across the full 15-year window we track, SCHD has the edge at +11.63% annualized vs +6.44%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HEDJ has been the more volatile fund, with annualized monthly volatility of 15.5% compared with 13.7% 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 -38.2% for HEDJ 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HEDJ charges 0.58% per year while SCHD charges 0.06%. On a $10,000 position that is $58 vs $6 annually, a gap of $52 per year that compounds over a long holding period. On income, HEDJ currently yields 1.78% against 3.13% for SCHD.
Holdings Overlap
HEDJ and SCHD share 0 holdings out of 230 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, HEDJ or SCHD?
HEDJ has an expense ratio of 0.58% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $52 per year of difference.
Which performed better, HEDJ or SCHD?
Over the past year HEDJ returned +15.59% vs +32.53% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), HEDJ annualized +6.44% vs +11.63% for SCHD. Past performance does not guarantee future results.
Which is riskier, HEDJ or SCHD?
HEDJ has been the more volatile fund at 15.5% annualized versus 13.7% for SCHD. Worst drawdown: HEDJ -38.2% vs SCHD -33.4%.
Should I hold both HEDJ and SCHD?
HEDJ and SCHD have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HEDJ and SCHD?
HEDJ and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 230 unique securities.
Which pays a higher dividend, HEDJ or SCHD?
HEDJ yields 1.78% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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