IEFA vs SCHD
iShares Core MSCI EAFE ETF vs Schwab US Dividend Equity ETF
Which is better, IEFA or SCHD?
Large Cap Blend against Large Cap Value.
SCHD has a lower expense ratio. IEFA led over 3Y, SCHD over 1Y, 5Y and the full window. IEFA is less concentrated, with 11.8% of the fund in its ten largest positions against 41.8%.
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 | IEFA | SCHD |
|---|---|---|
| Expense Ratio | 0.07% | 0.06%Best |
| AUM | $193.3B | $112.1B |
| Dividend Yield | 3.29% | 3.00% |
| Holdings | 2,640 | 103 |
| YTD Return | +9.50% | +24.23%Best |
| 1Y Return | +15.88% | +27.90%Best |
| 3Y Return (annualized) | +17.47%Best | +15.55% |
| 5Y Return (annualized) | +8.37% | +9.97%Best |
| Volatility (annualized) | 14.3% | 14.0%Best |
| Max Drawdown | -34.8% | -33.4%Best |
| $10,000 over 5 years | $14,947 | $16,083Best |
| Top 10 Weight | 11.8%Best | 41.8% |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Oct 18, 2012 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Oct 22, 2012 to Sep 17, 2026 (13.9 years).
IEFA 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 13.9 years both funds cover.
IEFA vs SCHD Performance
iShares Core MSCI EAFE ETF (IEFA) 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 IEFA returned +15.88% while SCHD returned +27.90%. Year to date, IEFA is up 9.50% versus a gain of 24.23% for SCHD.
Over three years, IEFA compounded at +17.47% per year against +15.55% for SCHD; over five years the annualized figures are +8.37% and +9.97% respectively. Across the full 14-year window we track, SCHD has the edge at +11.02% annualized vs +8.22%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IEFA has been the more volatile fund, with annualized monthly volatility of 14.3% compared with 14.0% 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 -34.8% for IEFA 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IEFA charges 0.07% per year while SCHD charges 0.06%. On a $10,000 position that is $7 vs $6 annually, a gap of $1 per year that compounds over a long holding period. On income, IEFA currently yields 3.29% against 3.00% for SCHD.
Holdings Overlap
0.6% of SCHD's money is in holdings IEFA 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 2,580 positions we hold weights for in IEFA and 100 in SCHD, against full books of 2,640 and 103.
What only one of them owns
Our book lists 98 positions for SCHD that do not appear in our book for IEFA (99.3% of the fund), and 26 for IEFA that do not appear in SCHD (3.7%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in IEFA | Weight in SCHD | Difference |
|---|---|---|---|
| RFRegions Financial Corp. | 0.01% | 0.62% | 0.61% |
You are not choosing between two funds in isolation.
Whichever of IEFA 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, IEFA or SCHD?
IEFA has an expense ratio of 0.07% while SCHD charges 0.06%. SCHD is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, IEFA or SCHD?
Over the past year IEFA returned +15.88% vs +27.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (14 years), IEFA annualized +8.22% vs +11.02% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IEFA or SCHD?
IEFA has been the more volatile fund at 14.3% annualized versus 14.0% for SCHD. Worst drawdown: IEFA -34.8% vs SCHD -33.4%.
Should I hold both IEFA and SCHD?
IEFA and SCHD have a monthly-return correlation of 0.78, 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, IEFA or SCHD?
IEFA yields 3.29% while SCHD yields 3.00%, so IEFA currently pays the higher dividend yield.
Is SCHD better than IEFA?
SCHD has a lower expense ratio. IEFA led over 3Y, SCHD over 1Y, 5Y and the full window. IEFA is less concentrated, with 11.8% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.