IYG vs SCHD
iShares US Financial Services ETF vs Schwab US Dividend Equity ETF
Which is better, IYG or SCHD?
Each has led over a different period.
SCHD has a lower expense ratio. IYG led over 3Y, 5Y and the full window, SCHD over 1Y. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 63.0%.
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 | IYG | SCHD |
|---|---|---|
| Expense Ratio | 0.38% | 0.06%Best |
| AUM | $2.2B | $112.1B |
| Dividend Yield | 1.01% | 3.00% |
| Holdings | 104 | 103 |
| YTD Return | +3.93% | +24.59%Best |
| 1Y Return | +9.49% | +28.14%Best |
| 3Y Return (annualized) | +22.92%Best | +15.58% |
| 5Y Return (annualized) | +10.64%Best | +9.90% |
| Volatility (annualized) | 19.5% | 13.6%Best |
| Max Drawdown | -44.3% | -33.4%Best |
| $10,000 over 5 years | $16,579Best | $16,032 |
| Top 10 Weight | 63.0% | 41.8%Best |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Jun 12, 2000 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 10, 2026 (14.9 years).
IYG 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.
IYG vs SCHD Performance
iShares US Financial Services ETF (IYG) 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 IYG returned +9.49% while SCHD returned +28.14%. Year to date, IYG is up 3.93% versus a gain of 24.59% for SCHD.
Over three years, IYG compounded at +22.92% per year against +15.58% for SCHD; over five years the annualized figures are +10.64% and +9.90% respectively. Across the full 15-year window we track, IYG has the edge at +13.98% annualized vs +11.34%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYG has been the more volatile fund, with annualized monthly volatility of 19.5% 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 -44.3% for IYG 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYG 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, IYG currently yields 1.01% against 3.00% for SCHD.
Holdings Overlap
3.5% of IYG's money is in holdings SCHD also owns. 6.3% of SCHD's money is in holdings IYG also owns.
SCHD and IYG share little of their money.
7 positions in common, counted across the 100 positions we hold weights for in IYG and 100 in SCHD, against full books of 104 and 103.
What only one of them owns
Our book lists 92 positions for SCHD that do not appear in our book for IYG (93.7% of the fund), and 91 for IYG that do not appear in SCHD (96.2%).
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 IYG | Weight in SCHD | Difference |
|---|---|---|---|
| BXBlackstone Group Inc/the Common Stock | 1.38% | 2.59% | 1.21% |
| FITBFifth Third Bancorp | 0.71% | 1.19% | 0.48% |
| ARESAres Management Corp Common Stock | 0.41% | 0.74% | 0.33% |
| RFRegions Financial Corp. | 0.37% | 0.62% | 0.25% |
| TROWT Rowe Price Group Inc | 0.34% | 0.58% | 0.24% |
| EWBCEast West Bancorp, Inc. | 0.25% | 0.42% | 0.17% |
| OZKBank Ozk | 0.07% | 0.12% | 0.05% |
You are not choosing between two funds in isolation.
Whichever of IYG 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, IYG or SCHD?
IYG 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, IYG or SCHD?
Over the past year IYG returned +9.49% vs +28.14% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), IYG annualized +13.98% vs +11.34% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IYG or SCHD?
IYG has been the more volatile fund at 19.5% annualized versus 13.6% for SCHD. Worst drawdown: IYG -44.3% vs SCHD -33.4%.
Should I hold both IYG and SCHD?
IYG and SCHD have a monthly-return correlation of 0.77, 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 IYG and SCHD?
6.3% of SCHD's money is in holdings IYG also owns. 6.3% of SCHD's is in holdings IYG also owns. They hold 7 positions in common, counted across the 100 positions we hold weights for in IYG and 100 in SCHD.
Which pays a higher dividend, IYG or SCHD?
IYG yields 1.01% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.
Is SCHD better than IYG?
SCHD has a lower expense ratio. IYG led over 3Y, 5Y and the full window, SCHD over 1Y. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 63.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.