RW vs SCHD
Rainwater Equity 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 | RW | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.06% | |
| AUM | $18M | $103.7B | |
| Dividend Yield | 0.10% | 3.31% | |
| Holdings | 33 | 104 | |
| YTD Return | +4.16% | +25.33% | |
| 1Y Return | +0.85% | +32.31% | |
| 3Y Return (annualized) | - | +15.40% | |
| 5Y Return (annualized) | - | +9.70% | |
| Volatility (annualized) | 12.9% | 13.6% | |
| Max Drawdown | -17.0% | -33.4% | |
| Fund Family | Rainwater ETFs | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jun 17, 2025 | Oct 20, 2011 |
RW vs SCHD Performance
Rainwater Equity ETF (RW) is a ETF from Rainwater ETFs and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year RW returned +0.85% while SCHD returned +32.31%. Year to date, RW is up 4.16% versus a gain of 25.33% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 12.9% for RW. 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 -17.0% for RW 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
RW charges 0.95% per year while SCHD charges 0.06%. On a $10,000 position that is $95 vs $6 annually, a gap of $89 per year that compounds over a long holding period. On income, RW currently yields 0.10% against 3.31% for SCHD.
Holdings Overlap
RW and SCHD share 0 holdings out of 132 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, RW or SCHD?
RW has an expense ratio of 0.95% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $89 per year of difference.
Which performed better, RW or SCHD?
Over the past year RW returned +0.85% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (1 years), RW annualized +3.71% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, RW or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 12.9% for RW. Worst drawdown: RW -17.0% vs SCHD -33.4%.
Should I hold both RW and SCHD?
RW and SCHD have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RW and SCHD?
RW and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 132 unique securities.
Which pays a higher dividend, RW or SCHD?
RW yields 0.10% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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