ITB vs SCHD
iShares US Home Construction 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 | ITB | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.06% | |
| AUM | $2.3B | $103.7B | |
| Dividend Yield | 0.61% | 3.31% | |
| Holdings | 48 | 104 | |
| YTD Return | +3.94% | +24.26% | |
| 1Y Return | -1.63% | +31.38% | |
| 3Y Return (annualized) | +5.43% | +15.08% | |
| 5Y Return (annualized) | +8.25% | +9.72% | |
| Volatility (annualized) | 31.1% | 13.6% | |
| Max Drawdown | -87.1% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | Oct 20, 2011 |
ITB vs SCHD Performance
iShares US Home Construction ETF (ITB) 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 ITB returned -1.63% while SCHD returned +31.38%. Year to date, ITB is up 3.94% versus a gain of 24.26% for SCHD.
Over three years, ITB compounded at +5.43% per year against +15.08% for SCHD; over five years the annualized figures are +8.25% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +3.77%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ITB has been the more volatile fund, with annualized monthly volatility of 31.1% 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 -87.1% for ITB 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ITB 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, ITB currently yields 0.61% against 3.31% for SCHD.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, ITB or SCHD?
ITB 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, ITB or SCHD?
Over the past year ITB returned -1.63% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), ITB annualized +3.77% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, ITB or SCHD?
ITB has been the more volatile fund at 31.1% annualized versus 13.6% for SCHD. Worst drawdown: ITB -87.1% vs SCHD -33.4%.
Should I hold both ITB and SCHD?
ITB and SCHD have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ITB and SCHD?
ITB and SCHD share 2 common holdings with a 4.2% weight overlap. Combined, they hold 143 unique securities.
Which pays a higher dividend, ITB or SCHD?
ITB yields 0.61% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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