SCHD vs WSML
Schwab US Dividend Equity ETF vs iShares MSCI World Small-Cap ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. WSML offers more diversification with 1555 holdings.
Side-by-Side Comparison
| Metric | SCHD | WSML | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.30% | |
| AUM | $103.7B | $654M | |
| Dividend Yield | 3.31% | 2.76% | |
| Holdings | 104 | 3,540 | |
| YTD Return | +25.58% | +17.92% | |
| 1Y Return | +31.06% | +27.93% | |
| 3Y Return (annualized) | +15.55% | - | |
| 5Y Return (annualized) | +9.61% | - | |
| Volatility (annualized) | 13.6% | 13.1% | |
| Max Drawdown | -33.4% | -10.7% | |
| Fund Family | Charles Schwab Asset Management | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Apr 1, 2025 |
SCHD vs WSML Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and iShares MSCI World Small-Cap ETF (WSML) is a ETF from iShares by BlackRock (US). Over the past year SCHD returned +31.06% while WSML returned +27.93%. Year to date, SCHD is up 25.58% versus a gain of 17.92% for WSML.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 13.1% for WSML. 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 -10.7% for WSML. 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while WSML charges 0.30%. On a $10,000 position that is $6 vs $30 annually, a gap of $24 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 2.76% for WSML.
Holdings Overlap
SCHD and WSML share 31 holdings out of 1624 unique holdings combined, representing a 1.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or WSML?
SCHD has an expense ratio of 0.06% while WSML charges 0.30%. SCHD is the cheaper option. On a $10,000 investment, that is $24 per year of difference.
Which performed better, SCHD or WSML?
Over the past year SCHD returned +31.06% vs +27.93% for WSML, so SCHD leads on 1-year performance. Over the longest common window we track (1 years), SCHD annualized +11.46% vs +37.55% for WSML. Past performance does not guarantee future results.
Which is riskier, SCHD or WSML?
SCHD has been the more volatile fund at 13.6% annualized versus 13.1% for WSML. Worst drawdown: SCHD -33.4% vs WSML -10.7%.
Should I hold both SCHD and WSML?
SCHD and WSML have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and WSML?
SCHD and WSML share 31 common holdings with a 1.4% weight overlap. Combined, they hold 1624 unique securities.
Which pays a higher dividend, SCHD or WSML?
SCHD yields 3.31% while WSML yields 2.76%, so SCHD currently pays the higher dividend yield.
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