IHE vs SCHD
iShares US Pharmaceutical ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. IHE delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | IHE | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.06% | |
| AUM | $1.6B | $103.7B | |
| Dividend Yield | 1.48% | 3.31% | |
| Holdings | 60 | 104 | |
| YTD Return | +22.11% | +26.21% | |
| 1Y Return | +52.49% | +29.99% | |
| 3Y Return (annualized) | +18.90% | +15.73% | |
| 5Y Return (annualized) | +11.23% | +9.67% | |
| Volatility (annualized) | 15.6% | 13.6% | |
| Max Drawdown | -39.6% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | Oct 20, 2011 |
IHE vs SCHD Performance
iShares US Pharmaceutical ETF (IHE) 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 IHE returned +52.49% while SCHD returned +29.99%. Year to date, IHE is up 22.11% versus a gain of 26.21% for SCHD.
Over three years, IHE compounded at +18.90% per year against +15.73% for SCHD; over five years the annualized figures are +11.23% and +9.67% respectively. Across the full 15-year window we track, SCHD has the edge at +11.50% annualized vs +9.82%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IHE has been the more volatile fund, with annualized monthly volatility of 15.6% 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 -39.6% for IHE 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IHE 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, IHE currently yields 1.48% against 3.31% for SCHD.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, IHE or SCHD?
IHE 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, IHE or SCHD?
Over the past year IHE returned +52.49% vs +29.99% for SCHD, so IHE leads on 1-year performance. Over the longest common window we track (15 years), IHE annualized +9.82% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, IHE or SCHD?
IHE has been the more volatile fund at 15.6% annualized versus 13.6% for SCHD. Worst drawdown: IHE -39.6% vs SCHD -33.4%.
Should I hold both IHE and SCHD?
IHE and SCHD have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IHE and SCHD?
IHE and SCHD share 2 common holdings with a 7.5% weight overlap. Combined, they hold 155 unique securities.
Which pays a higher dividend, IHE or SCHD?
IHE yields 1.48% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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