SCHD vs TLTE
Schwab US Dividend Equity ETF vs FlexShares Morningstar Emerging Markets Factor Tilt Index Fund
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. TLTE offers more diversification with 2960 holdings.
Side-by-Side Comparison
| Metric | SCHD | TLTE | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.57% | |
| AUM | $103.7B | $341M | |
| Dividend Yield | 3.31% | 3.24% | |
| Holdings | 104 | 3,106 | |
| YTD Return | +24.26% | +16.29% | |
| 1Y Return | +31.38% | +30.38% | |
| 3Y Return (annualized) | +15.08% | +19.09% | |
| 5Y Return (annualized) | +9.72% | +7.92% | |
| Volatility (annualized) | 13.6% | 16.6% | |
| Max Drawdown | -33.4% | -47.6% | |
| Fund Family | Charles Schwab Asset Management | Flexshares Trust | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Sep 25, 2012 |
SCHD vs TLTE Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and FlexShares Morningstar Emerging Markets Factor Tilt Index Fund (TLTE) is a ETF from Flexshares Trust. Over the past year SCHD returned +31.38% while TLTE returned +30.38%. Year to date, SCHD is up 24.26% versus a gain of 16.29% for TLTE.
Over three years, SCHD compounded at +15.08% per year against +19.09% for TLTE; over five years the annualized figures are +9.72% and +7.92% respectively. Across the full 14-year window we track, SCHD has the edge at +11.39% annualized vs +4.39%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TLTE has been the more volatile fund, with annualized monthly volatility of 16.6% 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 -47.6% for TLTE. 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TLTE charges 0.57%. On a $10,000 position that is $6 vs $57 annually, a gap of $51 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 3.24% for TLTE.
Holdings Overlap
SCHD and TLTE share 0 holdings out of 3060 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, SCHD or TLTE?
SCHD has an expense ratio of 0.06% while TLTE charges 0.57%. SCHD is the cheaper option. On a $10,000 investment, that is $51 per year of difference.
Which performed better, SCHD or TLTE?
Over the past year SCHD returned +31.38% vs +30.38% for TLTE, so SCHD leads on 1-year performance. Over the longest common window we track (14 years), SCHD annualized +11.39% vs +4.39% for TLTE. Past performance does not guarantee future results.
Which is riskier, SCHD or TLTE?
TLTE has been the more volatile fund at 16.6% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TLTE -47.6%.
Should I hold both SCHD and TLTE?
SCHD and TLTE have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TLTE?
SCHD and TLTE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3060 unique securities.
Which pays a higher dividend, SCHD or TLTE?
SCHD yields 3.31% while TLTE yields 3.24%, so SCHD currently pays the higher dividend yield.
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