IVAL vs SCHD

IVAL vs SCHD

Which is better, IVAL or SCHD?

Each has led over a different period.

SCHD has a lower expense ratio. IVAL led over 3Y and 5Y, SCHD over 1Y and the full window. IVAL is less concentrated, with 20.4% of the fund in its ten largest positions against 41.8%.

Lower Fees: SCHDHigher Returns: splitLess Concentrated: IVAL

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

MetricIVALSCHD
Expense Ratio0.38%0.06%Best
AUM$228M$112.1B
Dividend Yield2.54%3.00%
Holdings55103
YTD Return+19.86%+24.23%Best
1Y Return+25.25%+27.90%Best
3Y Return (annualized)+19.37%Best+15.55%
5Y Return (annualized)+11.12%Best+9.97%
Volatility (annualized)17.3%14.8%Best
Max Drawdown-49.2%-33.4%Best
$10,000 over 5 years$16,942Best$16,083
Top 10 Weight20.4%Best41.8%
Fund FamilyAlpha ArchitectCharles Schwab Asset Management
CategoryEquityEquity
StyleLarge Cap ValueLarge Cap Value
InceptionDec 16, 2014Oct 20, 2011

Volatility and max drawdown are measured over the window both funds cover: Dec 17, 2014 to Sep 17, 2026 (11.8 years).

IVAL 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 11.8 years both funds cover.

IVAL vs SCHD Performance

Alpha Architect International Quantitative Value ETF (IVAL) is an ETF from Alpha Architect and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year IVAL returned +25.25% while SCHD returned +27.90%. Year to date, IVAL is up 19.86% versus a gain of 24.23% for SCHD.

Over three years, IVAL compounded at +19.37% per year against +15.55% for SCHD; over five years the annualized figures are +11.12% and +9.97% respectively. Across the full 12-year window we track, SCHD has the edge at +10.21% annualized vs +5.62%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

IVAL has been the more volatile fund, with annualized monthly volatility of 17.3% compared with 14.8% 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 -49.2% for IVAL 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 0.78. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IVAL 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, IVAL currently yields 2.54% against 3.00% for SCHD.

Holdings Overlap

We hold position weights for 65 holdings in IVAL and 100 in SCHD, totalling 100.0% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.

0 positions in common, counted across the 65 positions we hold weights for in IVAL and 100 in SCHD, against full books of 55 and 103.

What only one of them owns

Our book lists 99 positions for SCHD that do not appear in our book for IVAL (99.9% of the fund), and 0 for IVAL that do not appear in SCHD (0.0%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

You are not choosing between two funds in isolation.

Whichever of IVAL and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

IVALSCHD

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, IVAL or SCHD?

IVAL has an expense ratio of 0.38% while SCHD charges 0.06%. SCHD is the cheaper option, by $32 a year on a $10,000 investment.

Which performed better, IVAL or SCHD?

Over the past year IVAL returned +25.25% vs +27.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (12 years), IVAL annualized +5.62% vs +10.21% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, IVAL or SCHD?

IVAL has been the more volatile fund at 17.3% annualized versus 14.8% for SCHD. Worst drawdown: IVAL -49.2% vs SCHD -33.4%.

Should I hold both IVAL and SCHD?

IVAL and SCHD have a monthly-return correlation of 0.78, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, IVAL or SCHD?

IVAL yields 2.54% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.

Is SCHD better than IVAL?

SCHD has a lower expense ratio. IVAL led over 3Y and 5Y, SCHD over 1Y and the full window. IVAL is less concentrated, with 20.4% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.