IYM vs SCHD
iShares US Basic Materials 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 | IYM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.06% | |
| AUM | $1.0B | $108.7B | |
| Dividend Yield | 1.30% | 3.13% | |
| Holdings | 43 | 104 | |
| YTD Return | +20.72% | +26.54% | |
| 1Y Return | +30.83% | +30.90% | |
| 3Y Return (annualized) | +14.71% | +16.29% | |
| 5Y Return (annualized) | +8.72% | +9.65% | |
| Volatility (annualized) | 22.2% | 13.6% | |
| Max Drawdown | -68.1% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jun 12, 2000 | Oct 20, 2011 |
IYM vs SCHD Performance
iShares US Basic Materials ETF (IYM) 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 IYM returned +30.83% while SCHD returned +30.90%. Year to date, IYM is up 20.72% versus a gain of 26.54% for SCHD.
Over three years, IYM compounded at +14.71% per year against +16.29% for SCHD; over five years the annualized figures are +8.72% and +9.65% respectively. Across the full 15-year window we track, SCHD has the edge at +11.51% annualized vs +7.02%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYM has been the more volatile fund, with annualized monthly volatility of 22.2% 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 -68.1% for IYM 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYM 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, IYM currently yields 1.30% against 3.13% for SCHD.
Holdings Overlap
IYM and SCHD share 1 holdings out of 139 unique holdings combined, representing a 1.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IYM | Weight in SCHD | Difference |
|---|---|---|---|
| FAST | 4.44% | 1.49% | 2.95% |
Frequently Asked Questions
Which is cheaper, IYM or SCHD?
IYM 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, IYM or SCHD?
Over the past year IYM returned +30.83% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), IYM annualized +7.02% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, IYM or SCHD?
IYM has been the more volatile fund at 22.2% annualized versus 13.6% for SCHD. Worst drawdown: IYM -68.1% vs SCHD -33.4%.
Should I hold both IYM and SCHD?
IYM and SCHD have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYM and SCHD?
IYM and SCHD share 1 common holdings with a 1.5% weight overlap. Combined, they hold 139 unique securities.
Which pays a higher dividend, IYM or SCHD?
IYM yields 1.30% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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