SCHD vs USMV
Schwab US Dividend Equity ETF vs iShares MSCI USA Minimum Volatility Factor ETF
Which is better, SCHD or USMV?
Large Cap Value against Large Cap Blend.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. USMV is less concentrated, with 15.1% of the fund in its ten largest positions against 41.8%.
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 | USMV |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.15% |
| AUM | $112.1B | $24.1B |
| Dividend Yield | 3.00% | 1.42% |
| Holdings | 103 | 170 |
| YTD Return | +25.07%Best | +6.80% |
| 1Y Return | +27.61%Best | +6.23% |
| 3Y Return (annualized) | +15.74%Best | +11.81% |
| 5Y Return (annualized) | +9.89%Best | +7.06% |
| Volatility (annualized) | 13.6% | 11.2%Best |
| Max Drawdown | -33.4% | -33.1%Best |
| $10,000 over 5 years | $16,025Best | $14,065 |
| Top 10 Weight | 41.8% | 15.1%Best |
| Fund Family | Charles Schwab Asset Management | iShares by BlackRock (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | Oct 20, 2011 | Oct 18, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 11, 2026 (14.9 years).
SCHD vs USMV 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 USMV Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and iShares MSCI USA Minimum Volatility Factor ETF (USMV) is an ETF from iShares by BlackRock (US). Over the past year SCHD returned +27.61% while USMV returned +6.23%. Year to date, SCHD is up 25.07% versus a gain of 6.80% for USMV.
Over three years, SCHD compounded at +15.74% per year against +11.81% for USMV; over five years the annualized figures are +9.89% and +7.06% respectively. Across the full 15-year window we track, SCHD has the edge at +11.36% annualized vs +10.25%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 11.2% for USMV. 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 -33.1% for USMV. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while USMV charges 0.15%. On a $10,000 position that is $6 vs $15 annually, a gap of $9 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 1.42% for USMV.
Holdings Overlap
58.2% of SCHD's money is in holdings USMV also owns. 10.7% of USMV's money is in holdings SCHD also owns.
The two portfolios partly overlap.
18 positions in common, counted across the 100 positions we hold weights for in SCHD and 167 in USMV, against full books of 103 and 170.
What only one of them owns
Our book lists 148 positions for USMV that do not appear in our book for SCHD (88.0% of the fund), and 81 for SCHD that do not appear in USMV (41.7%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in USMV | Difference |
|---|---|---|---|
| MRKMerck & Co. Inc. | 4.77% | 1.30% | 3.47% |
| ABTAbbott Laboratories | 4.69% | 0.73% | 3.96% |
| KOCoca Cola Co. | 4.17% | 1.24% | 2.93% |
| VZVerizon Communications, Inc. | 3.97% | 1.37% | 2.60% |
| AMGNAmgen Inc. | 4.70% | 0.33% | 4.37% |
| PGProcter & Gamble Company | 3.83% | 1.05% | 2.78% |
| PEPPepsico Inc. | 3.64% | 0.84% | 2.80% |
| CVXChevron Corp. | 4.02% | 0.38% | 3.64% |
| UNHUnitedhealth Group Inc. | 3.82% | 0.41% | 3.41% |
| HDHome Depot Inc/The | 3.88% | 0.08% | 3.80% |
58.2% of SCHD is already inside USMV.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SCHD or USMV?
SCHD has an expense ratio of 0.06% while USMV charges 0.15%. SCHD is the cheaper option, by $9 a year on a $10,000 investment.
Which performed better, SCHD or USMV?
Over the past year SCHD returned +27.61% vs +6.23% for USMV, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.36% vs +10.25% for USMV. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or USMV?
SCHD has been the more volatile fund at 13.6% annualized versus 11.2% for USMV. Worst drawdown: SCHD -33.4% vs USMV -33.1%.
Should I hold both SCHD and USMV?
SCHD and USMV have a monthly-return correlation of 0.87, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between SCHD and USMV?
58.2% of SCHD's money is in holdings USMV also owns. 10.7% of USMV's is in holdings SCHD also owns. They hold 18 positions in common, counted across the 100 positions we hold weights for in SCHD and 167 in USMV.
Which pays a higher dividend, SCHD or USMV?
SCHD yields 3.00% while USMV yields 1.42%, so SCHD currently pays the higher dividend yield.
Is USMV better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. USMV is less concentrated, with 15.1% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.