IQDY vs SCHD
FlexShares International Quality Dividend Dynamic Index Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. IQDY delivered stronger 1-year returns. IQDY offers more diversification with 252 holdings.
Side-by-Side Comparison
| Metric | IQDY | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.47% | 0.06% | |
| AUM | $114M | $108.7B | |
| Dividend Yield | 2.96% | 3.13% | |
| Holdings | 252 | 104 | |
| YTD Return | +18.76% | +28.63% | |
| 1Y Return | +33.90% | +32.53% | |
| 3Y Return (annualized) | +25.89% | +16.97% | |
| 5Y Return (annualized) | +13.40% | +10.47% | |
| Volatility (annualized) | 17.2% | 13.7% | |
| Max Drawdown | -45.3% | -33.4% | |
| Fund Family | Flexshares Trust | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Apr 12, 2013 | Oct 20, 2011 |
IQDY vs SCHD Performance
FlexShares International Quality Dividend Dynamic Index Fund (IQDY) is a ETF from Flexshares Trust and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year IQDY returned +33.90% while SCHD returned +32.53%. Year to date, IQDY is up 18.76% versus a gain of 28.63% for SCHD.
Over three years, IQDY compounded at +25.89% per year against +16.97% for SCHD; over five years the annualized figures are +13.40% and +10.47% respectively. Across the full 13-year window we track, SCHD has the edge at +11.63% annualized vs +6.52%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IQDY has been the more volatile fund, with annualized monthly volatility of 17.2% compared with 13.7% 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 -45.3% for IQDY 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IQDY charges 0.47% per year while SCHD charges 0.06%. On a $10,000 position that is $47 vs $6 annually, a gap of $41 per year that compounds over a long holding period. On income, IQDY currently yields 2.96% against 3.13% for SCHD.
Holdings Overlap
IQDY and SCHD share 0 holdings out of 299 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IQDY or SCHD?
IQDY has an expense ratio of 0.47% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, IQDY or SCHD?
Over the past year IQDY returned +33.90% vs +32.53% for SCHD, so IQDY leads on 1-year performance. Over the longest common window we track (13 years), IQDY annualized +6.52% vs +11.63% for SCHD. Past performance does not guarantee future results.
Which is riskier, IQDY or SCHD?
IQDY has been the more volatile fund at 17.2% annualized versus 13.7% for SCHD. Worst drawdown: IQDY -45.3% vs SCHD -33.4%.
Should I hold both IQDY and SCHD?
IQDY and SCHD have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IQDY and SCHD?
IQDY and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 299 unique securities.
Which pays a higher dividend, IQDY or SCHD?
IQDY yields 2.96% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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