IWC vs SCHD
iShares Microcap ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. IWC delivered stronger 1-year returns. IWC offers more diversification with 1279 holdings.
Side-by-Side Comparison
| Metric | IWC | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.06% | |
| AUM | $1.4B | $103.7B | |
| Dividend Yield | 0.94% | 3.31% | |
| Holdings | 1,380 | 104 | |
| YTD Return | +25.25% | +25.62% | |
| 1Y Return | +51.41% | +32.62% | |
| 3Y Return (annualized) | +23.03% | +15.58% | |
| 5Y Return (annualized) | +7.48% | +9.63% | |
| Volatility (annualized) | 21.6% | 13.6% | |
| Max Drawdown | -65.2% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Aug 12, 2005 | Oct 20, 2011 |
IWC vs SCHD Performance
iShares Microcap ETF (IWC) 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 IWC returned +51.41% while SCHD returned +32.62%. Year to date, IWC is up 25.25% versus a gain of 25.62% for SCHD.
Over three years, IWC compounded at +23.03% per year against +15.58% for SCHD; over five years the annualized figures are +7.48% and +9.63% respectively. Across the full 15-year window we track, SCHD has the edge at +11.47% annualized vs +7.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IWC has been the more volatile fund, with annualized monthly volatility of 21.6% 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 -65.2% for IWC 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IWC charges 0.60% per year while SCHD charges 0.06%. On a $10,000 position that is $60 vs $6 annually, a gap of $54 per year that compounds over a long holding period. On income, IWC currently yields 0.94% against 3.31% for SCHD.
Holdings Overlap
IWC and SCHD share 9 holdings out of 1370 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IWC or SCHD?
IWC has an expense ratio of 0.60% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $54 per year of difference.
Which performed better, IWC or SCHD?
Over the past year IWC returned +51.41% vs +32.62% for SCHD, so IWC leads on 1-year performance. Over the longest common window we track (15 years), IWC annualized +7.10% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, IWC or SCHD?
IWC has been the more volatile fund at 21.6% annualized versus 13.6% for SCHD. Worst drawdown: IWC -65.2% vs SCHD -33.4%.
Should I hold both IWC and SCHD?
IWC and SCHD have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IWC and SCHD?
IWC and SCHD share 9 common holdings with a 0.2% weight overlap. Combined, they hold 1370 unique securities.
Which pays a higher dividend, IWC or SCHD?
IWC yields 0.94% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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