ISCB vs SCHD
iShares Morningstar Small-Cap ETF vs Schwab US Dividend Equity ETF
Which is better, ISCB or SCHD?
Small Cap Blend against Large Cap Value.
ISCB has a lower expense ratio. ISCB led over 3Y, SCHD over 1Y, 5Y and the full window.
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 | ISCB | SCHD |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.06% |
| AUM | $282M | $112.1B |
| Dividend Yield | 1.27% | 3.00% |
| Holdings | 1,587 | 103 |
| YTD Return | +11.61% | +23.46%Best |
| 1Y Return | +14.35% | +27.20%Best |
| 3Y Return (annualized) | +16.25%Best | +15.41% |
| 5Y Return (annualized) | +7.07% | +10.16%Best |
| Volatility (annualized) | 18.1% | 13.7%Best |
| Max Drawdown | -44.2% | -33.4%Best |
| $10,000 over 5 years | $14,071 | $16,223Best |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Value |
| Inception | Jun 28, 2004 | Oct 20, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 18, 2026 (14.9 years).
ISCB 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 14.9 years both funds cover.
ISCB vs SCHD Performance
iShares Morningstar Small-Cap ETF (ISCB) 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 ISCB returned +14.35% while SCHD returned +27.20%. Year to date, ISCB is up 11.61% versus a gain of 23.46% for SCHD.
Over three years, ISCB compounded at +16.25% per year against +15.41% for SCHD; over five years the annualized figures are +7.07% and +10.16% respectively. Across the full 15-year window we track, SCHD has the edge at +11.25% annualized vs +9.68%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ISCB has been the more volatile fund, with annualized monthly volatility of 18.1% 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 -44.2% for ISCB 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ISCB charges 0.04% per year while SCHD charges 0.06%. On a $10,000 position that is $4 vs $6 annually, a gap of $2 per year that compounds over a long holding period. On income, ISCB currently yields 1.27% against 3.00% for SCHD.
Holdings Overlap
At least 4.6% of SCHD's money is in holdings ISCB also owns.
Stated as a floor: for ISCB, our book for it covers 93.3% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
SCHD and ISCB share little of their money.
32 positions in common, counted across the 1,340 positions we hold weights for in ISCB and 100 in SCHD, against full books of 1,587 and 103.
Top Shared Holdings
| Stock | Weight in ISCB | Weight in SCHD | Difference |
|---|---|---|---|
| BBYBest Buy Co. Inc. | 0.25% | 0.38% | 0.13% |
| DINOHF Sinclair Corp | 0.23% | 0.38% | 0.15% |
| APAApa Corp | 0.23% | 0.37% | 0.14% |
| SWKSSkyworks Solutions Inc. | 0.16% | 0.25% | 0.09% |
| AFGAmerican Financial Group Inc/Oh | 0.16% | 0.24% | 0.08% |
| ORIOld Republic International Corp | 0.15% | 0.23% | 0.08% |
| BAHBooz Allen Hamilton Holding Corp. | 0.14% | 0.22% | 0.08% |
| COLBColumbia Banking System Inc Common Stock | 0.13% | 0.21% | 0.08% |
| ALVAllianz Ag | 0.12% | 0.20% | 0.08% |
| ERIEErie Indemnity-a | 0.10% | 0.16% | 0.06% |
You are not choosing between two funds in isolation.
Whichever of ISCB 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, ISCB or SCHD?
ISCB has an expense ratio of 0.04% while SCHD charges 0.06%. ISCB is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, ISCB or SCHD?
Over the past year ISCB returned +14.35% vs +27.20% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), ISCB annualized +9.68% vs +11.25% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ISCB or SCHD?
ISCB has been the more volatile fund at 18.1% annualized versus 13.7% for SCHD. Worst drawdown: ISCB -44.2% vs SCHD -33.4%.
Should I hold both ISCB and SCHD?
ISCB and SCHD have a monthly-return correlation of 0.82, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between ISCB and SCHD?
At least 4.6% of SCHD's money is in holdings ISCB also owns. Our book for ISCB is partial, so the real figure is this or higher. They hold 32 positions in common, counted across the 1,340 positions we hold weights for in ISCB and 100 in SCHD.
Which pays a higher dividend, ISCB or SCHD?
ISCB yields 1.27% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.
Is SCHD better than ISCB?
ISCB has a lower expense ratio. ISCB led over 3Y, SCHD over 1Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.