RWJ vs SCHD
Invesco S&P SmallCap 600 Revenue ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. RWJ delivered stronger 1-year returns. RWJ offers more diversification with 586 holdings.
Side-by-Side Comparison
| Metric | RWJ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.06% | |
| AUM | $2.1B | $103.7B | |
| Dividend Yield | 1.02% | 3.31% | |
| Holdings | 597 | 104 | |
| YTD Return | +26.42% | +25.58% | |
| 1Y Return | +37.10% | +31.06% | |
| 3Y Return (annualized) | +17.40% | +15.55% | |
| 5Y Return (annualized) | +10.66% | +9.61% | |
| Volatility (annualized) | 24.9% | 13.6% | |
| Max Drawdown | -56.3% | -33.4% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Feb 19, 2008 | Oct 20, 2011 |
RWJ vs SCHD Performance
Invesco S&P SmallCap 600 Revenue ETF (RWJ) is a ETF from Invesco (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year RWJ returned +37.10% while SCHD returned +31.06%. Year to date, RWJ is up 26.42% versus a gain of 25.58% for SCHD.
Over three years, RWJ compounded at +17.40% per year against +15.55% for SCHD; over five years the annualized figures are +10.66% and +9.61% respectively. Across the full 15-year window we track, RWJ has the edge at +11.91% annualized vs +11.46%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RWJ has been the more volatile fund, with annualized monthly volatility of 24.9% 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 -56.3% for RWJ 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
RWJ charges 0.39% per year while SCHD charges 0.06%. On a $10,000 position that is $39 vs $6 annually, a gap of $33 per year that compounds over a long holding period. On income, RWJ currently yields 1.02% against 3.31% for SCHD.
Holdings Overlap
RWJ and SCHD share 22 holdings out of 664 unique holdings combined, representing a 1.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, RWJ or SCHD?
RWJ has an expense ratio of 0.39% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $33 per year of difference.
Which performed better, RWJ or SCHD?
Over the past year RWJ returned +37.10% vs +31.06% for SCHD, so RWJ leads on 1-year performance. Over the longest common window we track (15 years), RWJ annualized +11.91% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, RWJ or SCHD?
RWJ has been the more volatile fund at 24.9% annualized versus 13.6% for SCHD. Worst drawdown: RWJ -56.3% vs SCHD -33.4%.
Should I hold both RWJ and SCHD?
RWJ and SCHD have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RWJ and SCHD?
RWJ and SCHD share 22 common holdings with a 1.1% weight overlap. Combined, they hold 664 unique securities.
Which pays a higher dividend, RWJ or SCHD?
RWJ yields 1.02% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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