IYR vs SCHD
iShares US Real Estate ETF vs Schwab US Dividend Equity ETF
Which is better, IYR or SCHD?
Mid Cap Blend against Large Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 53.4%.
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 | IYR | SCHD |
|---|---|---|
| Expense Ratio | 0.37% | 0.06%Best |
| AUM | $4.2B | $108.9B |
| Dividend Yield | 2.21% | 3.00% |
| Holdings | 64 | 206 |
| YTD Return | +2.36% | +20.89%Best |
| 1Y Return | +0.49% | +23.87%Best |
| 3Y Return (annualized) | +10.68% | +16.42%Best |
| 5Y Return (annualized) | +0.86% | +9.40%Best |
| Volatility (annualized) | 16.2% | 13.7%Best |
| Max Drawdown | -42.3% | -33.4%Best |
| $10,000 over 5 years | $10,437 | $15,671Best |
| Top 10 Weight | 53.4% | 41.8%Best |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Mid Cap Blend | 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 Oct 2, 2026 (15 years).
IYR 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 15 years both funds cover.
IYR vs SCHD Performance
iShares US Real Estate ETF (IYR) 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 IYR returned +0.49% while SCHD returned +23.87%. Year to date, IYR is up 2.36% versus a gain of 20.89% for SCHD.
Over three years, IYR compounded at +10.68% per year against +16.42% for SCHD; over five years the annualized figures are +0.86% and +9.40% respectively. Across the full 15-year window we track, SCHD has the edge at +11.07% annualized vs +5.00%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYR has been the more volatile fund, with annualized monthly volatility of 16.2% 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 -42.3% for IYR 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
IYR charges 0.37% per year while SCHD charges 0.06%. On a $10,000 position that is $37 vs $6 annually, a gap of $31 per year that compounds over a long holding period. On income, IYR currently yields 2.21% against 3.00% for SCHD.
Holdings Overlap
We hold position weights for 61 holdings in IYR and 99 in SCHD, totalling 99.8% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 61 positions we hold weights for in IYR and 99 in SCHD, against full books of 64 and 206.
What only one of them owns
Measured across the 61 and 99 positions we hold weights for.
SCHD holds 98 positions IYR does not, 99.9% of the fund.
Largest: MRK 4.77%, ABT 4.44%, CVX 4.29%, KO 4.26%, AMGN 4.24%
You are not choosing between two funds in isolation.
Whichever of IYR 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, IYR or SCHD?
IYR has an expense ratio of 0.37% while SCHD charges 0.06%. SCHD is the cheaper option, by $31 a year on a $10,000 investment.
Which performed better, IYR or SCHD?
Over the past year IYR returned +0.49% vs +23.87% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), IYR annualized +5.00% vs +11.07% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IYR or SCHD?
IYR has been the more volatile fund at 16.2% annualized versus 13.7% for SCHD. Worst drawdown: IYR -42.3% vs SCHD -33.4%.
Should I hold both IYR and SCHD?
IYR 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.
Which pays a higher dividend, IYR or SCHD?
IYR yields 2.21% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.
Is SCHD better than IYR?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 53.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.