IAU vs SCHD
ishares Gold Trust vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. IAU delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | IAU | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.06% | |
| AUM | $60.5B | $103.7B | |
| Dividend Yield | 0.00% | 3.31% | |
| Holdings | 2 | 104 | |
| YTD Return | +1.74% | +25.58% | |
| 1Y Return | +31.51% | +31.06% | |
| 3Y Return (annualized) | +31.98% | +15.55% | |
| 5Y Return (annualized) | +19.97% | +9.61% | |
| Volatility (annualized) | 17.2% | 13.6% | |
| Max Drawdown | -45.1% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Commodity | Equity | |
| Inception | Jan 21, 2005 | Oct 20, 2011 |
IAU vs SCHD Performance
ishares Gold Trust (IAU) 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 IAU returned +31.51% while SCHD returned +31.06%. Year to date, IAU is up 1.74% versus a gain of 25.58% for SCHD.
Over three years, IAU compounded at +31.98% per year against +15.55% for SCHD; over five years the annualized figures are +19.97% and +9.61% respectively. Across the full 15-year window we track, SCHD has the edge at +11.46% annualized vs +11.14%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IAU has been the more volatile fund, with annualized monthly volatility of 17.2% 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 -45.1% for IAU 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 0.11. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IAU charges 0.25% per year while SCHD charges 0.06%. On a $10,000 position that is $25 vs $6 annually, a gap of $19 per year that compounds over a long holding period. On income, IAU currently yields 0.00% against 3.31% for SCHD.
Frequently Asked Questions
Which is cheaper, IAU or SCHD?
IAU has an expense ratio of 0.25% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, IAU or SCHD?
Over the past year IAU returned +31.51% vs +31.06% for SCHD, so IAU leads on 1-year performance. Over the longest common window we track (15 years), IAU annualized +11.14% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, IAU or SCHD?
IAU has been the more volatile fund at 17.2% annualized versus 13.6% for SCHD. Worst drawdown: IAU -45.1% vs SCHD -33.4%.
Should I hold both IAU and SCHD?
IAU and SCHD have a monthly-return correlation of 0.11, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, IAU or SCHD?
IAU yields 0.00% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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