DFAW vs SCHD
DFAW vs SCHD
Dimensional World Equity 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 | DFAW | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.24% | 0.06% | |
| AUM | $1.6B | $103.7B | |
| Dividend Yield | 1.23% | 3.31% | |
| Holdings | 6 | 104 | |
| YTD Return | +15.60% | +24.26% | |
| 1Y Return | +26.85% | +31.38% | |
| 3Y Return (annualized) | - | +15.08% | |
| 5Y Return (annualized) | - | +9.72% | |
| Volatility (annualized) | 12.1% | 13.6% | |
| Max Drawdown | -16.9% | -33.4% | |
| Fund Family | Dimensional | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Sep 26, 2023 | Oct 20, 2011 |
DFAW vs SCHD Performance
Dimensional World Equity ETF (DFAW) is a ETF from Dimensional and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year DFAW returned +26.85% while SCHD returned +31.38%. Year to date, DFAW is up 15.60% versus a gain of 24.26% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 12.1% for DFAW. 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 -16.9% for DFAW 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DFAW charges 0.24% per year while SCHD charges 0.06%. On a $10,000 position that is $24 vs $6 annually, a gap of $18 per year that compounds over a long holding period. On income, DFAW currently yields 1.23% against 3.31% for SCHD.
Holdings Overlap
DFAW and SCHD share 0 holdings out of 105 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, DFAW or SCHD?
DFAW has an expense ratio of 0.24% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $18 per year of difference.
Which performed better, DFAW or SCHD?
Over the past year DFAW returned +26.85% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), DFAW annualized +22.91% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, DFAW or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 12.1% for DFAW. Worst drawdown: DFAW -16.9% vs SCHD -33.4%.
Should I hold both DFAW and SCHD?
DFAW and SCHD have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFAW and SCHD?
DFAW and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.
Which pays a higher dividend, DFAW or SCHD?
DFAW yields 1.23% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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