LDEM vs SCHD
iShares ESG MSCI EM Leaders ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. LDEM offers more diversification with 423 holdings.
Side-by-Side Comparison
| Metric | LDEM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.17% | 0.06% | |
| AUM | $32M | $103.7B | |
| Dividend Yield | 2.93% | 3.31% | |
| Holdings | 459 | 104 | |
| YTD Return | +3.51% | +24.26% | |
| 1Y Return | +13.16% | +31.38% | |
| 3Y Return (annualized) | +13.91% | +15.08% | |
| 5Y Return (annualized) | +2.68% | +9.72% | |
| Volatility (annualized) | 18.4% | 13.6% | |
| Max Drawdown | -40.8% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Feb 5, 2020 | Oct 20, 2011 |
LDEM vs SCHD Performance
iShares ESG MSCI EM Leaders ETF (LDEM) 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 LDEM returned +13.16% while SCHD returned +31.38%. Year to date, LDEM is up 3.51% versus a gain of 24.26% for SCHD.
Over three years, LDEM compounded at +13.91% per year against +15.08% for SCHD; over five years the annualized figures are +2.68% and +9.72% respectively. Across the full 7-year window we track, SCHD has the edge at +11.39% annualized vs +4.84%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
LDEM has been the more volatile fund, with annualized monthly volatility of 18.4% 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 -40.8% for LDEM 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LDEM charges 0.17% per year while SCHD charges 0.06%. On a $10,000 position that is $17 vs $6 annually, a gap of $11 per year that compounds over a long holding period. On income, LDEM currently yields 2.93% against 3.31% for SCHD.
Holdings Overlap
LDEM and SCHD share 0 holdings out of 523 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, LDEM or SCHD?
LDEM has an expense ratio of 0.17% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, LDEM or SCHD?
Over the past year LDEM returned +13.16% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (7 years), LDEM annualized +4.84% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, LDEM or SCHD?
LDEM has been the more volatile fund at 18.4% annualized versus 13.6% for SCHD. Worst drawdown: LDEM -40.8% vs SCHD -33.4%.
Should I hold both LDEM and SCHD?
LDEM and SCHD have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LDEM and SCHD?
LDEM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 523 unique securities.
Which pays a higher dividend, LDEM or SCHD?
LDEM yields 2.93% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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