SCHD vs WCME
Schwab US Dividend Equity ETF vs First Trust WCM Developing World Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | WCME | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.95% | |
| AUM | $103.7B | $35M | |
| Dividend Yield | 3.31% | 0.34% | |
| Holdings | 104 | 42 | |
| YTD Return | +25.33% | +6.48% | |
| 1Y Return | +32.31% | +17.47% | |
| 3Y Return (annualized) | +15.40% | - | |
| 5Y Return (annualized) | +9.70% | - | |
| Volatility (annualized) | 13.6% | 17.4% | |
| Max Drawdown | -33.4% | -15.6% | |
| Fund Family | Charles Schwab Asset Management | First Trust Portfolios (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Oct 7, 2024 |
SCHD vs WCME Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and First Trust WCM Developing World Equity ETF (WCME) is a ETF from First Trust Portfolios (US). Over the past year SCHD returned +32.31% while WCME returned +17.47%. Year to date, SCHD is up 25.33% versus a gain of 6.48% for WCME.
Risk: Volatility and Drawdowns
WCME has been the more volatile fund, with annualized monthly volatility of 17.4% 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 -15.6% for WCME. 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 0.26. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while WCME charges 0.95%. On a $10,000 position that is $6 vs $95 annually, a gap of $89 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.34% for WCME.
Holdings Overlap
SCHD and WCME share 0 holdings out of 135 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 WCME?
SCHD has an expense ratio of 0.06% while WCME charges 0.95%. SCHD is the cheaper option. On a $10,000 investment, that is $89 per year of difference.
Which performed better, SCHD or WCME?
Over the past year SCHD returned +32.31% vs +17.47% for WCME, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), SCHD annualized +11.45% vs +15.97% for WCME. Past performance does not guarantee future results.
Which is riskier, SCHD or WCME?
WCME has been the more volatile fund at 17.4% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs WCME -15.6%.
Should I hold both SCHD and WCME?
SCHD and WCME have a monthly-return correlation of 0.26, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and WCME?
SCHD and WCME share 0 common holdings with a 0.0% weight overlap. Combined, they hold 135 unique securities.
Which pays a higher dividend, SCHD or WCME?
SCHD yields 3.31% while WCME yields 0.34%, so SCHD currently pays the higher dividend yield.
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