IYR vs SCHD
iShares US Real Estate 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 100 holdings.
Side-by-Side Comparison
| Metric | IYR | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.06% | |
| AUM | $4.8B | $103.7B | |
| Dividend Yield | 2.21% | 3.31% | |
| Holdings | 65 | 104 | |
| YTD Return | +9.97% | +25.62% | |
| 1Y Return | +11.48% | +32.62% | |
| 3Y Return (annualized) | +9.05% | +15.58% | |
| 5Y Return (annualized) | +1.91% | +9.63% | |
| Volatility (annualized) | 19.8% | 13.6% | |
| Max Drawdown | -76.5% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jun 12, 2000 | Oct 20, 2011 |
IYR vs SCHD Performance
iShares US Real Estate ETF (IYR) 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 IYR returned +11.48% while SCHD returned +32.62%. Year to date, IYR is up 9.97% versus a gain of 25.62% for SCHD.
Over three years, IYR compounded at +9.05% per year against +15.58% for SCHD; over five years the annualized figures are +1.91% and +9.63% respectively. Across the full 15-year window we track, SCHD has the edge at +11.47% annualized vs +4.74%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYR has been the more volatile fund, with annualized monthly volatility of 19.8% 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 -76.5% for IYR 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYR 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, IYR currently yields 2.21% against 3.31% for SCHD.
Holdings Overlap
IYR and SCHD share 0 holdings out of 162 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IYR or SCHD?
IYR 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, IYR or SCHD?
Over the past year IYR returned +11.48% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), IYR annualized +4.74% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, IYR or SCHD?
IYR has been the more volatile fund at 19.8% annualized versus 13.6% for SCHD. Worst drawdown: IYR -76.5% vs SCHD -33.4%.
Should I hold both IYR and SCHD?
IYR and SCHD have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYR and SCHD?
IYR and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 162 unique securities.
Which pays a higher dividend, IYR or SCHD?
IYR yields 2.21% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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