IYT vs SCHD
iShares US Transportation 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 | IYT | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.06% | |
| AUM | $2.3B | $108.7B | |
| Dividend Yield | 0.92% | 3.13% | |
| Holdings | 47 | 104 | |
| YTD Return | +15.38% | +28.63% | |
| 1Y Return | +21.96% | +32.53% | |
| 3Y Return (annualized) | +12.97% | +16.97% | |
| 5Y Return (annualized) | +7.84% | +10.47% | |
| Volatility (annualized) | 20.1% | 13.7% | |
| Max Drawdown | -60.7% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Oct 6, 2003 | Oct 20, 2011 |
IYT vs SCHD Performance
iShares US Transportation ETF (IYT) 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 IYT returned +21.96% while SCHD returned +32.53%. Year to date, IYT is up 15.38% versus a gain of 28.63% for SCHD.
Over three years, IYT compounded at +12.97% per year against +16.97% for SCHD; over five years the annualized figures are +7.84% and +10.47% respectively. Across the full 15-year window we track, SCHD has the edge at +11.63% annualized vs +9.04%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYT has been the more volatile fund, with annualized monthly volatility of 20.1% 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 -60.7% for IYT 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYT 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, IYT currently yields 0.92% against 3.13% for SCHD.
Holdings Overlap
IYT and SCHD share 1 holdings out of 143 unique holdings combined, representing a 1.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IYT | Weight in SCHD | Difference |
|---|---|---|---|
| UPS | 5.70% | 1.95% | 3.75% |
Frequently Asked Questions
Which is cheaper, IYT or SCHD?
IYT 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, IYT or SCHD?
Over the past year IYT returned +21.96% vs +32.53% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), IYT annualized +9.04% vs +11.63% for SCHD. Past performance does not guarantee future results.
Which is riskier, IYT or SCHD?
IYT has been the more volatile fund at 20.1% annualized versus 13.7% for SCHD. Worst drawdown: IYT -60.7% vs SCHD -33.4%.
Should I hold both IYT and SCHD?
IYT and SCHD have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYT and SCHD?
IYT and SCHD share 1 common holdings with a 1.9% weight overlap. Combined, they hold 143 unique securities.
Which pays a higher dividend, IYT or SCHD?
IYT yields 0.92% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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