AOR vs SCHD
AOR vs SCHD
iShares Core 60/40 Balanced Allocation ETF vs Schwab US Dividend 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 | AOR | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.06% | |
| AUM | $3.6B | $103.7B | |
| Dividend Yield | 2.47% | 3.31% | |
| Holdings | 9 | 104 | |
| YTD Return | +8.73% | +24.26% | |
| 1Y Return | +16.29% | +31.38% | |
| 3Y Return (annualized) | +14.02% | +15.08% | |
| 5Y Return (annualized) | +7.02% | +9.72% | |
| Volatility (annualized) | 10.1% | 13.6% | |
| Max Drawdown | -25.0% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Nov 4, 2008 | Oct 20, 2011 |
AOR vs SCHD Performance
iShares Core 60/40 Balanced Allocation ETF (AOR) is a ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year AOR returned +16.29% while SCHD returned +31.38%. Year to date, AOR is up 8.73% versus a gain of 24.26% for SCHD.
Over three years, AOR compounded at +14.02% per year against +15.08% for SCHD; over five years the annualized figures are +7.02% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +7.03%. 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 10.1% for AOR. 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 -25.0% for AOR and -33.4% for SCHD. 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
AOR charges 0.15% per year while SCHD charges 0.06%. On a $10,000 position that is $15 vs $6 annually, a gap of $9 per year that compounds over a long holding period. On income, AOR currently yields 2.47% against 3.31% for SCHD.
Holdings Overlap
AOR and SCHD share 0 holdings out of 108 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, AOR or SCHD?
AOR has an expense ratio of 0.15% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, AOR or SCHD?
Over the past year AOR returned +16.29% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), AOR annualized +7.03% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, AOR or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 10.1% for AOR. Worst drawdown: AOR -25.0% vs SCHD -33.4%.
Should I hold both AOR and SCHD?
AOR and SCHD have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AOR and SCHD?
AOR and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 108 unique securities.
Which pays a higher dividend, AOR or SCHD?
AOR yields 2.47% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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