IYK vs SCHD
iShares US Consumer Staples ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | IYK | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.06% | |
| AUM | $1.4B | $103.7B | |
| Dividend Yield | 2.61% | 3.31% | |
| Holdings | 57 | 104 | |
| YTD Return | +12.73% | +26.21% | |
| 1Y Return | +8.64% | +29.99% | |
| 3Y Return (annualized) | +6.30% | +15.73% | |
| 5Y Return (annualized) | +6.02% | +9.67% | |
| Volatility (annualized) | 13.1% | 13.6% | |
| Max Drawdown | -44.1% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jun 12, 2000 | Oct 20, 2011 |
IYK vs SCHD Performance
iShares US Consumer Staples ETF (IYK) 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 IYK returned +8.64% while SCHD returned +29.99%. Year to date, IYK is up 12.73% versus a gain of 26.21% for SCHD.
Over three years, IYK compounded at +6.30% per year against +15.73% for SCHD; over five years the annualized figures are +6.02% and +9.67% respectively. Across the full 15-year window we track, SCHD has the edge at +11.50% annualized vs +7.18%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 13.1% for IYK. 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 -44.1% for IYK 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYK 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, IYK currently yields 2.61% against 3.31% for SCHD.
Holdings Overlap
IYK and SCHD share 8 holdings out of 146 unique holdings combined, representing a 18.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IYK or SCHD?
IYK has an expense ratio of 0.38% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, IYK or SCHD?
Over the past year IYK returned +8.64% vs +29.99% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), IYK annualized +7.18% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, IYK or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 13.1% for IYK. Worst drawdown: IYK -44.1% vs SCHD -33.4%.
Should I hold both IYK and SCHD?
IYK and SCHD have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYK and SCHD?
IYK and SCHD share 8 common holdings with a 18.3% weight overlap. Combined, they hold 146 unique securities.
Which pays a higher dividend, IYK or SCHD?
IYK yields 2.61% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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