SCHD vs SVAL
Schwab US Dividend Equity ETF vs iShares US Small Cap Value Factor ETF
Quick Verdict
SCHD has a lower expense ratio. SVAL delivered stronger 1-year returns. SVAL offers more diversification with 262 holdings.
Side-by-Side Comparison
| Metric | SCHD | SVAL | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.20% | |
| AUM | $108.7B | $211M | |
| Dividend Yield | 3.13% | 2.05% | |
| Holdings | 104 | 262 | |
| YTD Return | +26.54% | +29.00% | |
| 1Y Return | +30.90% | +37.82% | |
| 3Y Return (annualized) | +16.29% | +18.74% | |
| 5Y Return (annualized) | +9.65% | +10.14% | |
| Volatility (annualized) | 13.6% | 22.0% | |
| Max Drawdown | -33.4% | -27.4% | |
| Fund Family | Charles Schwab Asset Management | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Oct 27, 2020 |
SCHD vs SVAL Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and iShares US Small Cap Value Factor ETF (SVAL) is a ETF from iShares by BlackRock (US). Over the past year SCHD returned +30.90% while SVAL returned +37.82%. Year to date, SCHD is up 26.54% versus a gain of 29.00% for SVAL.
Over three years, SCHD compounded at +16.29% per year against +18.74% for SVAL; over five years the annualized figures are +9.65% and +10.14% respectively. Across the full 6-year window we track, SVAL has the edge at +17.78% annualized vs +11.51%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SVAL has been the more volatile fund, with annualized monthly volatility of 22.0% 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 -27.4% for SVAL. 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while SVAL charges 0.20%. On a $10,000 position that is $6 vs $20 annually, a gap of $14 per year that compounds over a long holding period. On income, SCHD currently yields 3.13% against 2.05% for SVAL.
Holdings Overlap
SCHD and SVAL share 7 holdings out of 336 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or SVAL?
SCHD has an expense ratio of 0.06% while SVAL charges 0.20%. SCHD is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, SCHD or SVAL?
Over the past year SCHD returned +30.90% vs +37.82% for SVAL, so SVAL leads on 1-year performance. Over the longest common window we track (6 years), SCHD annualized +11.51% vs +17.78% for SVAL. Past performance does not guarantee future results.
Which is riskier, SCHD or SVAL?
SVAL has been the more volatile fund at 22.0% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs SVAL -27.4%.
Should I hold both SCHD and SVAL?
SCHD and SVAL have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SVAL?
SCHD and SVAL share 7 common holdings with a 0.4% weight overlap. Combined, they hold 336 unique securities.
Which pays a higher dividend, SCHD or SVAL?
SCHD yields 3.13% while SVAL yields 2.05%, so SCHD currently pays the higher dividend yield.
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