IWO vs SCHD
iShares Russell 2000 Growth ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. IWO offers more diversification with 1,125 holdings.
Side-by-Side Comparison
| Metric | IWO | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.24% | 0.06% | |
| AUM | $14.9B | $112.2B | |
| Dividend Yield | 0.44% | 3.13% | |
| Holdings | 1,125 | 103 | |
| YTD Return | +13.57% | +27.60% | |
| 1Y Return | +21.86% | +29.63% | |
| 3Y Return (annualized) | +16.74% | +16.43% | |
| 5Y Return (annualized) | +4.45% | +10.05% | |
| Volatility (annualized) | 21.6% | 13.6% | |
| Max Drawdown | -60.3% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jul 24, 2000 | Oct 20, 2011 |
IWO vs SCHD Performance
iShares Russell 2000 Growth ETF (IWO) 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 IWO returned +21.86% while SCHD returned +29.63%. Year to date, IWO is up 13.57% versus a gain of 27.60% for SCHD.
Over three years, IWO compounded at +16.74% per year against +16.43% for SCHD; over five years the annualized figures are +4.45% and +10.05% respectively. Across the full 15-year window we track, SCHD has the edge at +11.54% annualized vs +6.43%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IWO 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 -60.3% for IWO 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IWO charges 0.24% per year while SCHD charges 0.06%. On a $10,000 position that is $24 vs $6 annually, a gap of $18 per year that compounds over a long holding period. On income, IWO currently yields 0.44% against 3.13% for SCHD.
Holdings Overlap
IWO and SCHD share 12 holdings out of 1188 unique holdings combined, representing a 0.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IWO or SCHD?
IWO has an expense ratio of 0.24% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $18 per year of difference.
Which performed better, IWO or SCHD?
Over the past year IWO returned +21.86% vs +29.63% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), IWO annualized +6.43% vs +11.54% for SCHD. Past performance does not guarantee future results.
Which is riskier, IWO or SCHD?
IWO has been the more volatile fund at 21.6% annualized versus 13.6% for SCHD. Worst drawdown: IWO -60.3% vs SCHD -33.4%.
Should I hold both IWO and SCHD?
IWO and SCHD have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IWO and SCHD?
IWO and SCHD share 12 common holdings with a 0.6% weight overlap. Combined, they hold 1188 unique securities.
Which pays a higher dividend, IWO or SCHD?
IWO yields 0.44% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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