SCHD vs TWOX

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricSCHDTWOXWinner
Expense Ratio0.06%0.50%
AUM$103.7B$22M
Dividend Yield3.31%0.49%
Holdings1046
YTD Return+25.62%+6.57%
1Y Return+32.62%+14.93%
3Y Return (annualized)+15.58%-
5Y Return (annualized)+9.63%-
Volatility (annualized)13.6%10.6%
Max Drawdown-33.4%-19.4%
Fund FamilyCharles Schwab Asset ManagementiShares by BlackRock (US)
CategoryEquityEquity
InceptionOct 20, 2011Jan 15, 2025

SCHD vs TWOX Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and iShares Large Cap Accelerated Outcome ETF (TWOX) is a ETF from iShares by BlackRock (US). Over the past year SCHD returned +32.62% while TWOX returned +14.93%. Year to date, SCHD is up 25.62% versus a gain of 6.57% for TWOX.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 10.6% for TWOX. 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 -19.4% for TWOX. 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while TWOX charges 0.50%. On a $10,000 position that is $6 vs $50 annually, a gap of $44 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.49% for TWOX.

Holdings Overlap

0.0%overlap

SCHD and TWOX share 0 holdings out of 102 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 TWOX?

SCHD has an expense ratio of 0.06% while TWOX charges 0.50%. SCHD is the cheaper option. On a $10,000 investment, that is $44 per year of difference.

Which performed better, SCHD or TWOX?

Over the past year SCHD returned +32.62% vs +14.93% for TWOX, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), SCHD annualized +11.47% vs +12.28% for TWOX. Past performance does not guarantee future results.

Which is riskier, SCHD or TWOX?

SCHD has been the more volatile fund at 13.6% annualized versus 10.6% for TWOX. Worst drawdown: SCHD -33.4% vs TWOX -19.4%.

Should I hold both SCHD and TWOX?

SCHD and TWOX have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and TWOX?

SCHD and TWOX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 102 unique securities.

Which pays a higher dividend, SCHD or TWOX?

SCHD yields 3.31% while TWOX yields 0.49%, so SCHD currently pays the higher dividend yield.

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