IAI vs SCHD
iShares US Broker-Dealers & Securities Exchanges ETF vs Schwab US Dividend Equity ETF
Which is better, IAI or SCHD?
All Cap Blend against Large Cap Value.
SCHD has a lower expense ratio. IAI led over 3Y, 5Y and the full window, SCHD over 1Y. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 74.7%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IAI | SCHD |
|---|---|---|
| Expense Ratio | 0.37% | 0.06%Best |
| AUM | $1.4B | $112.1B |
| Dividend Yield | 1.10% | 3.00% |
| Holdings | 40 | 103 |
| YTD Return | +5.09% | +24.59%Best |
| 1Y Return | +9.44% | +28.14%Best |
| 3Y Return (annualized) | +28.10%Best | +15.58% |
| 5Y Return (annualized) | +13.87%Best | +9.90% |
| Volatility (annualized) | 20.2% | 13.6%Best |
| Max Drawdown | -40.4% | -33.4%Best |
| $10,000 over 5 years | $19,145Best | $16,032 |
| Top 10 Weight | 74.7% | 41.8%Best |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | All Cap Blend | Large Cap Value |
| Inception | May 1, 2006 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 10, 2026 (14.9 years).
IAI vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 14.9 years both funds cover.
IAI vs SCHD Performance
iShares US Broker-Dealers & Securities Exchanges ETF (IAI) is an ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year IAI returned +9.44% while SCHD returned +28.14%. Year to date, IAI is up 5.09% versus a gain of 24.59% for SCHD.
Over three years, IAI compounded at +28.10% per year against +15.58% for SCHD; over five years the annualized figures are +13.87% and +9.90% respectively. Across the full 15-year window we track, IAI has the edge at +16.44% annualized vs +11.34%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IAI has been the more volatile fund, with annualized monthly volatility of 20.2% 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 -40.4% for IAI and -33.4% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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
IAI charges 0.37% per year while SCHD charges 0.06%. On a $10,000 position that is $37 vs $6 annually, a gap of $31 per year that compounds over a long holding period. On income, IAI currently yields 1.10% against 3.00% for SCHD.
Holdings Overlap
0.4% of IAI's money is in holdings SCHD also owns. 0.1% of SCHD's money is in holdings IAI also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 36 positions we hold weights for in IAI and 100 in SCHD, against full books of 40 and 103.
What only one of them owns
Measured across the 36 and 100 positions we hold weights for.
SCHD holds 98 positions IAI does not, 99.8% of the fund.
Largest: MRK 4.77%, AMGN 4.70%, ABT 4.69%, KO 4.17%, CVX 4.02%
Top Shared Holdings
| Stock | Weight in IAI | Weight in SCHD | Difference |
|---|---|---|---|
| MCMoelis & Co | 0.43% | 0.12% | 0.31% |
You are not choosing between two funds in isolation.
Whichever of IAI and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IAI or SCHD?
IAI has an expense ratio of 0.37% while SCHD charges 0.06%. SCHD is the cheaper option, by $31 a year on a $10,000 investment.
Which performed better, IAI or SCHD?
Over the past year IAI returned +9.44% vs +28.14% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), IAI annualized +16.44% vs +11.34% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IAI or SCHD?
IAI has been the more volatile fund at 20.2% annualized versus 13.6% for SCHD. Worst drawdown: IAI -40.4% vs SCHD -33.4%.
Should I hold both IAI and SCHD?
IAI and SCHD have a monthly-return correlation of 0.71, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, IAI or SCHD?
IAI yields 1.10% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.
Is SCHD better than IAI?
SCHD has a lower expense ratio. IAI led over 3Y, 5Y and the full window, SCHD over 1Y. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 74.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.