SCHD vs SCZ
Schwab US Dividend Equity ETF vs iShares MSCI EAFE Small-Cap ETF
Which is better, SCHD or SCZ?
Large Cap Value against Mid Cap Growth.
SCHD has a lower expense ratio. SCHD led over 1Y, 5Y and the full window, SCZ over 3Y.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SCHD | SCZ |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.40% |
| AUM | $112.1B | $13.1B |
| Dividend Yield | 3.00% | 3.07% |
| Holdings | 103 | 2,080 |
| YTD Return | +21.99%Best | +10.25% |
| 1Y Return | +25.92%Best | +14.23% |
| 3Y Return (annualized) | +15.66% | +17.98%Best |
| 5Y Return (annualized) | +9.48%Best | +4.86% |
| Volatility (annualized) | 13.7%Best | 15.7% |
| Max Drawdown | -33.4%Best | -44.6% |
| $10,000 over 5 years | $15,728Best | $12,678 |
| Fund Family | Charles Schwab Asset Management | iShares by BlackRock (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Mid Cap Growth |
| Inception | Oct 20, 2011 | Dec 10, 2007 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 23, 2026 (14.9 years).
SCHD vs SCZ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 14.9 years both funds cover.
SCHD vs SCZ Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and iShares MSCI EAFE Small-Cap ETF (SCZ) is an ETF from iShares by BlackRock (US). Over the past year SCHD returned +25.92% while SCZ returned +14.23%. Year to date, SCHD is up 21.99% versus a gain of 10.25% for SCZ.
Over three years, SCHD compounded at +15.66% per year against +17.98% for SCZ; over five years the annualized figures are +9.48% and +4.86% respectively. Across the full 15-year window we track, SCHD has the edge at +11.15% annualized vs +6.98%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCZ has been the more volatile fund, with annualized monthly volatility of 15.7% 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 -33.4% for SCHD and -44.6% for SCZ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 3.00% against 3.07% for SCZ.
Holdings Overlap
At least 0.6% of SCHD's money is in holdings SCZ also owns.
Stated as a floor: for SCZ, our book for it covers 90.4% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 100 positions we hold weights for in SCHD and 1,663 in SCZ, against full books of 103 and 2,080.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in SCZ | Difference |
|---|---|---|---|
| RFRegions Financial Corp. | 0.62% | 0.06% | 0.56% |
You are not choosing between two funds in isolation.
Whichever of SCHD and SCZ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $34 a year on a $10,000 investment.
Which performed better, SCHD or SCZ?
Over the past year SCHD returned +25.92% vs +14.23% for SCZ, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.15% vs +6.98% for SCZ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or SCZ?
SCZ has been the more volatile fund at 15.7% annualized versus 13.7% for SCHD. Worst drawdown: SCHD -33.4% vs SCZ -44.6%.
Should I hold both SCHD and SCZ?
SCHD and SCZ have a monthly-return correlation of 0.75, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, SCHD or SCZ?
SCHD yields 3.00% while SCZ yields 3.07%, so SCZ currently pays the higher dividend yield.
Is SCZ better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 5Y and the full window, SCZ over 3Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.