ITWO vs SCHD
ProShares Russell 2000 High Income ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. ITWO offers more diversification with 1,981 holdings.
Side-by-Side Comparison
| Metric | ITWO | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.06% | |
| AUM | $199M | $112.2B | |
| Dividend Yield | 7.36% | 3.13% | |
| Holdings | 1,981 | 103 | |
| YTD Return | +12.92% | +28.33% | |
| 1Y Return | +21.90% | +30.37% | |
| 3Y Return (annualized) | - | +16.64% | |
| 5Y Return (annualized) | - | +10.04% | |
| Volatility (annualized) | 15.4% | 13.6% | |
| Max Drawdown | -24.8% | -33.4% | |
| Fund Family | ProShares | Charles Schwab Asset Management | |
| Category | Alternative | Equity | |
| Inception | Sep 4, 2024 | Oct 20, 2011 |
ITWO vs SCHD Performance
ProShares Russell 2000 High Income ETF (ITWO) is a ETF from ProShares and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year ITWO returned +21.90% while SCHD returned +30.37%. Year to date, ITWO is up 12.92% versus a gain of 28.33% for SCHD.
Risk: Volatility and Drawdowns
ITWO has been the more volatile fund, with annualized monthly volatility of 15.4% 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 -24.8% for ITWO 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ITWO charges 0.55% per year while SCHD charges 0.06%. On a $10,000 position that is $55 vs $6 annually, a gap of $49 per year that compounds over a long holding period. On income, ITWO currently yields 7.36% against 3.13% for SCHD.
Holdings Overlap
ITWO and SCHD share 33 holdings out of 2033 unique holdings combined, representing a 1.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ITWO or SCHD?
ITWO has an expense ratio of 0.55% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $49 per year of difference.
Which performed better, ITWO or SCHD?
Over the past year ITWO returned +21.90% vs +30.37% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), ITWO annualized +15.98% vs +11.58% for SCHD. Past performance does not guarantee future results.
Which is riskier, ITWO or SCHD?
ITWO has been the more volatile fund at 15.4% annualized versus 13.6% for SCHD. Worst drawdown: ITWO -24.8% vs SCHD -33.4%.
Should I hold both ITWO and SCHD?
ITWO and SCHD have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ITWO and SCHD?
ITWO and SCHD share 33 common holdings with a 1.5% weight overlap. Combined, they hold 2033 unique securities.
Which pays a higher dividend, ITWO or SCHD?
ITWO yields 7.36% while SCHD yields 3.13%, so ITWO currently pays the higher dividend yield.
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