IDU vs SCHD
iShares US Utilities ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | IDU | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.06% | |
| AUM | $1.4B | $103.7B | |
| Dividend Yield | 2.19% | 3.31% | |
| Holdings | 49 | 104 | |
| YTD Return | +2.91% | +25.58% | |
| 1Y Return | +3.68% | +31.06% | |
| 3Y Return (annualized) | +14.62% | +15.55% | |
| 5Y Return (annualized) | +8.37% | +9.61% | |
| Volatility (annualized) | 15.0% | 13.6% | |
| Max Drawdown | -56.4% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jun 12, 2000 | Oct 20, 2011 |
IDU vs SCHD Performance
iShares US Utilities ETF (IDU) 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 IDU returned +3.68% while SCHD returned +31.06%. Year to date, IDU is up 2.91% versus a gain of 25.58% for SCHD.
Over three years, IDU compounded at +14.62% per year against +15.55% for SCHD; over five years the annualized figures are +8.37% and +9.61% respectively. Across the full 15-year window we track, SCHD has the edge at +11.46% annualized vs +5.15%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IDU has been the more volatile fund, with annualized monthly volatility of 15.0% 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 -56.4% for IDU 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IDU 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, IDU currently yields 2.19% against 3.31% for SCHD.
Holdings Overlap
IDU and SCHD share 1 holdings out of 145 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IDU | Weight in SCHD | Difference |
|---|---|---|---|
| CWEN | 0.24% | 0.11% | 0.13% |
Frequently Asked Questions
Which is cheaper, IDU or SCHD?
IDU 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, IDU or SCHD?
Over the past year IDU returned +3.68% vs +31.06% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), IDU annualized +5.15% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, IDU or SCHD?
IDU has been the more volatile fund at 15.0% annualized versus 13.6% for SCHD. Worst drawdown: IDU -56.4% vs SCHD -33.4%.
Should I hold both IDU and SCHD?
IDU and SCHD have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IDU and SCHD?
IDU and SCHD share 1 common holdings with a 0.1% weight overlap. Combined, they hold 145 unique securities.
Which pays a higher dividend, IDU or SCHD?
IDU yields 2.19% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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