IWO vs SCHD
iShares Russell 2000 Growth ETF vs Schwab US Dividend Equity ETF
Which is better, IWO or SCHD?
Small Cap Growth against Large Cap Value.
SCHD has a lower expense ratio. IWO led over 3Y, SCHD over 1Y, 5Y and the full window. IWO is less concentrated, with 6.1% of the fund in its ten largest positions against 41.8%.
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
| Metric | IWO | SCHD |
|---|---|---|
| Expense Ratio | 0.24% | 0.06%Best |
| AUM | $14.6B | $112.1B |
| Dividend Yield | 0.44% | 3.00% |
| Holdings | 1,125 | 103 |
| YTD Return | +10.33% | +21.99%Best |
| 1Y Return | +11.61% | +25.92%Best |
| 3Y Return (annualized) | +17.97%Best | +15.66% |
| 5Y Return (annualized) | +3.97% | +9.48%Best |
| Volatility (annualized) | 19.5% | 13.7%Best |
| Max Drawdown | -42.0% | -33.4%Best |
| $10,000 over 5 years | $12,149 | $15,728Best |
| Top 10 Weight | 6.1%Best | 41.8% |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Small Cap Growth | Large Cap Value |
| Inception | Jul 24, 2000 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 23, 2026 (14.9 years).
IWO 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 14.9 years both funds cover.
IWO vs SCHD Performance
iShares Russell 2000 Growth ETF (IWO) is an ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year IWO returned +11.61% while SCHD returned +25.92%. Year to date, IWO is up 10.33% versus a gain of 21.99% for SCHD.
Over three years, IWO compounded at +17.97% per year against +15.66% for SCHD; over five years the annualized figures are +3.97% and +9.48% respectively. Across the full 15-year window we track, SCHD has the edge at +11.15% annualized vs +10.89%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IWO has been the more volatile fund, with annualized monthly volatility of 19.5% compared with 13.7% 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 -42.0% for IWO 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 0.71. 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 3.00% for SCHD.
Holdings Overlap
1.1% of IWO's money is in holdings SCHD also owns. 0.6% of SCHD's money is in holdings IWO also owns.
IWO and SCHD share little of their money.
11 positions in common, counted across the 1,025 positions we hold weights for in IWO and 100 in SCHD, against full books of 1,125 and 103.
What only one of them owns
Our book lists 88 positions for SCHD that do not appear in our book for IWO (99.4% of the fund), and 864 for IWO that do not appear in SCHD (91.3%).
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.
Top Shared Holdings
| Stock | Weight in IWO | Weight in SCHD | Difference |
|---|---|---|---|
| MCMoelis & Co_None_0 | 0.24% | 0.12% | 0.12% |
| LANCLancaster Colony Corp | 0.13% | 0.06% | 0.07% |
| IPARInter Parfums Inc | 0.14% | 0.05% | 0.09% |
| APAMArtisan Partners Asset Management, Inc. | 0.10% | 0.07% | 0.03% |
| NSPInsperity Inc | 0.12% | 0.05% | 0.07% |
| CHCOCity Holding Co Common Stock Usd2.5 | 0.09% | 0.05% | 0.04% |
| BKEBuckle Inc/the | 0.09% | 0.03% | 0.06% |
| WENWendy's Co/the | 0.08% | 0.03% | 0.05% |
| LKFNLakeland Financial Corp. | 0.06% | 0.04% | 0.02% |
| AGMFederal Agricultural Mortgage Corp | 0.02% | 0.05% | 0.03% |
You are not choosing between two funds in isolation.
Whichever of IWO and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $18 a year on a $10,000 investment.
Which performed better, IWO or SCHD?
Over the past year IWO returned +11.61% vs +25.92% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), IWO annualized +10.89% vs +11.15% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IWO or SCHD?
IWO has been the more volatile fund at 19.5% annualized versus 13.7% for SCHD. Worst drawdown: IWO -42.0% vs SCHD -33.4%.
Should I hold both IWO and SCHD?
IWO and SCHD have a monthly-return correlation of 0.71, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between IWO and SCHD?
1.1% of IWO's money is in holdings SCHD also owns. 0.6% of SCHD's is in holdings IWO also owns. They hold 11 positions in common, counted across the 1,025 positions we hold weights for in IWO and 100 in SCHD.
Which pays a higher dividend, IWO or SCHD?
IWO yields 0.44% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.
Is SCHD better than IWO?
SCHD has a lower expense ratio. IWO led over 3Y, SCHD over 1Y, 5Y and the full window. IWO is less concentrated, with 6.1% 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.