ESG vs SCHD
ESG vs SCHD
FlexShares STOXX US ESG Select Index Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. ESG offers more diversification with 249 holdings.
Side-by-Side Comparison
| Metric | ESG | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.32% | 0.06% | |
| AUM | $131M | $103.7B | |
| Dividend Yield | 0.87% | 3.31% | |
| Holdings | 253 | 104 | |
| YTD Return | +14.54% | +23.53% | |
| 1Y Return | +22.87% | +30.95% | |
| 3Y Return (annualized) | +19.02% | +14.72% | |
| 5Y Return (annualized) | +11.98% | +9.56% | |
| Volatility (annualized) | 17.5% | 13.6% | |
| Max Drawdown | -32.5% | -33.4% | |
| Fund Family | Flexshares Trust | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jul 13, 2016 | Oct 20, 2011 |
ESG vs SCHD Performance
FlexShares STOXX US ESG Select Index Fund (ESG) is a ETF from Flexshares Trust and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year ESG returned +22.87% while SCHD returned +30.95%. Year to date, ESG is up 14.54% versus a gain of 23.53% for SCHD.
Over three years, ESG compounded at +19.02% per year against +14.72% for SCHD; over five years the annualized figures are +11.98% and +9.56% respectively. Across the full 10-year window we track, ESG has the edge at +15.03% annualized vs +11.35%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ESG has been the more volatile fund, with annualized monthly volatility of 17.5% 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 -32.5% for ESG 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ESG charges 0.32% per year while SCHD charges 0.06%. On a $10,000 position that is $32 vs $6 annually, a gap of $26 per year that compounds over a long holding period. On income, ESG currently yields 0.87% against 3.31% for SCHD.
Holdings Overlap
ESG and SCHD share 23 holdings out of 326 unique holdings combined, representing a 9.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in ESG | Weight in SCHD | Difference |
|---|---|---|---|
| PG | 1.49% | 4.15% | 2.66% |
| MRK | 1.25% | 4.32% | 3.07% |
| KO | 1.34% | 4.08% | 2.74% |
| ABT | Pro | Pro | Pro |
| HD | Pro | Pro | Pro |
| PEP | Pro | Pro | Pro |
| VZ | Pro | Pro | Pro |
| BMY | Pro | Pro | Pro |
| QCOM | Pro | Pro | Pro |
| ADP | Pro | Pro | Pro |
See all 10 holdings ESG shares with SCHD Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, ESG or SCHD?
ESG has an expense ratio of 0.32% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, ESG or SCHD?
Over the past year ESG returned +22.87% vs +30.95% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (10 years), ESG annualized +15.03% vs +11.35% for SCHD. Past performance does not guarantee future results.
Which is riskier, ESG or SCHD?
ESG has been the more volatile fund at 17.5% annualized versus 13.6% for SCHD. Worst drawdown: ESG -32.5% vs SCHD -33.4%.
Should I hold both ESG and SCHD?
ESG and SCHD have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ESG and SCHD?
ESG and SCHD share 23 common holdings with a 9.2% weight overlap. Combined, they hold 326 unique securities.
Which pays a higher dividend, ESG or SCHD?
ESG yields 0.87% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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