IAT vs SCHD
iShares US Regional Banks ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. IAT delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | IAT | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.06% | |
| AUM | $666M | $103.7B | |
| Dividend Yield | 2.60% | 3.31% | |
| Holdings | 35 | 104 | |
| YTD Return | +18.05% | +25.58% | |
| 1Y Return | +31.35% | +31.06% | |
| 3Y Return (annualized) | +24.40% | +15.55% | |
| 5Y Return (annualized) | +4.94% | +9.61% | |
| Volatility (annualized) | 25.5% | 13.6% | |
| Max Drawdown | -78.8% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | Oct 20, 2011 |
IAT vs SCHD Performance
iShares US Regional Banks ETF (IAT) 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 IAT returned +31.35% while SCHD returned +31.06%. Year to date, IAT is up 18.05% versus a gain of 25.58% for SCHD.
Over three years, IAT compounded at +24.40% per year against +15.55% for SCHD; over five years the annualized figures are +4.94% and +9.61% respectively. Across the full 15-year window we track, SCHD has the edge at +11.46% annualized vs +2.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IAT has been the more volatile fund, with annualized monthly volatility of 25.5% 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 -78.8% for IAT 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
IAT charges 0.38% per year while SCHD charges 0.06%. On a $10,000 position that is $38 vs $6 annually, a gap of $32 per year that compounds over a long holding period. On income, IAT currently yields 2.60% against 3.31% for SCHD.
Holdings Overlap
IAT and SCHD share 4 holdings out of 128 unique holdings combined, representing a 2.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IAT or SCHD?
IAT has an expense ratio of 0.38% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, IAT or SCHD?
Over the past year IAT returned +31.35% vs +31.06% for SCHD, so IAT leads on 1-year performance. Over the longest common window we track (15 years), IAT annualized +2.09% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, IAT or SCHD?
IAT has been the more volatile fund at 25.5% annualized versus 13.6% for SCHD. Worst drawdown: IAT -78.8% vs SCHD -33.4%.
Should I hold both IAT and SCHD?
IAT 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 IAT and SCHD?
IAT and SCHD share 4 common holdings with a 2.6% weight overlap. Combined, they hold 128 unique securities.
Which pays a higher dividend, IAT or SCHD?
IAT yields 2.60% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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