SCHD vs SCZ
Schwab US Dividend Equity ETF vs iShares MSCI EAFE Small-Cap ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCZ offers more diversification with 1644 holdings.
Side-by-Side Comparison
| Metric | SCHD | SCZ | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.40% | |
| AUM | $103.7B | $13.2B | |
| Dividend Yield | 3.31% | 3.22% | |
| Holdings | 104 | 2,080 | |
| YTD Return | +25.58% | +12.40% | |
| 1Y Return | +31.06% | +19.26% | |
| 3Y Return (annualized) | +15.55% | +17.16% | |
| 5Y Return (annualized) | +9.61% | +5.69% | |
| Volatility (annualized) | 13.6% | 18.9% | |
| Max Drawdown | -33.4% | -62.6% | |
| Fund Family | Charles Schwab Asset Management | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Dec 10, 2007 |
SCHD vs SCZ Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and iShares MSCI EAFE Small-Cap ETF (SCZ) is a ETF from iShares by BlackRock (US). Over the past year SCHD returned +31.06% while SCZ returned +19.26%. Year to date, SCHD is up 25.58% versus a gain of 12.40% for SCZ.
Over three years, SCHD compounded at +15.55% per year against +17.16% for SCZ; over five years the annualized figures are +9.61% and +5.69% respectively. Across the full 15-year window we track, SCHD has the edge at +11.46% annualized vs +3.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCZ has been the more volatile fund, with annualized monthly volatility of 18.9% 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 -33.4% for SCHD and -62.6% for SCZ. 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while SCZ charges 0.40%. On a $10,000 position that is $6 vs $40 annually, a gap of $34 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 3.22% for SCZ.
Holdings Overlap
SCHD and SCZ share 1 holdings out of 1743 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in SCZ | Difference |
|---|---|---|---|
| RF | 0.68% | 0.05% | 0.63% |
Frequently Asked Questions
Which is cheaper, SCHD or SCZ?
SCHD has an expense ratio of 0.06% while SCZ charges 0.40%. SCHD is the cheaper option. On a $10,000 investment, that is $34 per year of difference.
Which performed better, SCHD or SCZ?
Over the past year SCHD returned +31.06% vs +19.26% for SCZ, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.46% vs +3.75% for SCZ. Past performance does not guarantee future results.
Which is riskier, SCHD or SCZ?
SCZ has been the more volatile fund at 18.9% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs SCZ -62.6%.
Should I hold both SCHD and SCZ?
SCHD and SCZ have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SCZ?
SCHD and SCZ share 1 common holdings with a 0.1% weight overlap. Combined, they hold 1743 unique securities.
Which pays a higher dividend, SCHD or SCZ?
SCHD yields 3.31% while SCZ yields 3.22%, so SCHD currently pays the higher dividend yield.
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