IDEF vs SCHD
iShares Defense Industrials Active ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. IDEF offers more diversification with 116 holdings.
Side-by-Side Comparison
| Metric | IDEF | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.06% | |
| AUM | $4.2B | $103.7B | |
| Dividend Yield | 0.34% | 3.31% | |
| Holdings | 131 | 104 | |
| YTD Return | +10.63% | +24.26% | |
| 1Y Return | +19.63% | +31.38% | |
| 3Y Return (annualized) | - | +15.08% | |
| 5Y Return (annualized) | - | +9.72% | |
| Volatility (annualized) | 21.6% | 13.6% | |
| Max Drawdown | -15.8% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | May 19, 2025 | Oct 20, 2011 |
IDEF vs SCHD Performance
iShares Defense Industrials Active ETF (IDEF) 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 IDEF returned +19.63% while SCHD returned +31.38%. Year to date, IDEF is up 10.63% versus a gain of 24.26% for SCHD.
Risk: Volatility and Drawdowns
IDEF has been the more volatile fund, with annualized monthly volatility of 21.6% 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 -15.8% for IDEF 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IDEF charges 0.55% per year while SCHD charges 0.06%. On a $10,000 position that is $55 vs $6 annually, a gap of $49 per year that compounds over a long holding period. On income, IDEF currently yields 0.34% against 3.31% for SCHD.
Holdings Overlap
IDEF and SCHD share 1 holdings out of 215 unique holdings combined, representing a 2.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IDEF | Weight in SCHD | Difference |
|---|---|---|---|
| LMT | 6.86% | 2.66% | 4.20% |
Frequently Asked Questions
Which is cheaper, IDEF or SCHD?
IDEF has an expense ratio of 0.55% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $49 per year of difference.
Which performed better, IDEF or SCHD?
Over the past year IDEF returned +19.63% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (1 years), IDEF annualized +31.83% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, IDEF or SCHD?
IDEF has been the more volatile fund at 21.6% annualized versus 13.6% for SCHD. Worst drawdown: IDEF -15.8% vs SCHD -33.4%.
Should I hold both IDEF and SCHD?
IDEF and SCHD have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IDEF and SCHD?
IDEF and SCHD share 1 common holdings with a 2.7% weight overlap. Combined, they hold 215 unique securities.
Which pays a higher dividend, IDEF or SCHD?
IDEF yields 0.34% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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