HEEM vs SCHD
iShares Currency Hedged MSCI Emerging Markets ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. HEEM delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | HEEM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.72% | 0.06% | |
| AUM | $276M | $103.7B | |
| Dividend Yield | 1.75% | 3.31% | |
| Holdings | 1,327 | 104 | |
| YTD Return | +16.11% | +25.33% | |
| 1Y Return | +33.88% | +32.31% | |
| 3Y Return (annualized) | +21.28% | +15.40% | |
| 5Y Return (annualized) | +8.80% | +9.70% | |
| Volatility (annualized) | 14.2% | 13.6% | |
| Max Drawdown | -33.5% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Sep 23, 2014 | Oct 20, 2011 |
HEEM vs SCHD Performance
iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) 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 HEEM returned +33.88% while SCHD returned +32.31%. Year to date, HEEM is up 16.11% versus a gain of 25.33% for SCHD.
Over three years, HEEM compounded at +21.28% per year against +15.40% for SCHD; over five years the annualized figures are +8.80% and +9.70% respectively. Across the full 12-year window we track, SCHD has the edge at +11.45% annualized vs +7.60%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HEEM has been the more volatile fund, with annualized monthly volatility of 14.2% 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 -33.5% for HEEM 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HEEM charges 0.72% per year while SCHD charges 0.06%. On a $10,000 position that is $72 vs $6 annually, a gap of $66 per year that compounds over a long holding period. On income, HEEM currently yields 1.75% against 3.31% for SCHD.
Holdings Overlap
HEEM and SCHD share 0 holdings out of 129 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, HEEM or SCHD?
HEEM has an expense ratio of 0.72% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $66 per year of difference.
Which performed better, HEEM or SCHD?
Over the past year HEEM returned +33.88% vs +32.31% for SCHD, so HEEM leads on 1-year performance. Over the longest common window we track (12 years), HEEM annualized +7.60% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, HEEM or SCHD?
HEEM has been the more volatile fund at 14.2% annualized versus 13.6% for SCHD. Worst drawdown: HEEM -33.5% vs SCHD -33.4%.
Should I hold both HEEM and SCHD?
HEEM and SCHD have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HEEM and SCHD?
HEEM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 129 unique securities.
Which pays a higher dividend, HEEM or SCHD?
HEEM yields 1.75% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.