HSCZ vs SCHD
HSCZ vs SCHD
iShares Currency Hedged MSCI EAFE Small-Cap ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. HSCZ offers more diversification with 1664 holdings.
Side-by-Side Comparison
| Metric | HSCZ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.43% | 0.06% | |
| AUM | $241M | $103.7B | |
| Dividend Yield | 2.95% | 3.31% | |
| Holdings | 2,184 | 104 | |
| YTD Return | +10.71% | +22.69% | |
| 1Y Return | +22.43% | +30.94% | |
| 3Y Return (annualized) | +17.91% | +14.20% | |
| 5Y Return (annualized) | +10.81% | +9.59% | |
| Volatility (annualized) | 13.9% | 13.7% | |
| Max Drawdown | -37.1% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jun 29, 2015 | Oct 20, 2011 |
HSCZ vs SCHD Performance
iShares Currency Hedged MSCI EAFE Small-Cap ETF (HSCZ) 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 HSCZ returned +22.43% while SCHD returned +30.94%. Year to date, HSCZ is up 10.71% versus a gain of 22.69% for SCHD.
Over three years, HSCZ compounded at +17.91% per year against +14.20% for SCHD; over five years the annualized figures are +10.81% and +9.59% respectively. Across the full 11-year window we track, SCHD has the edge at +11.31% annualized vs +8.62%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HSCZ has been the more volatile fund, with annualized monthly volatility of 13.9% compared with 13.7% 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 -37.1% for HSCZ 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HSCZ charges 0.43% per year while SCHD charges 0.06%. On a $10,000 position that is $43 vs $6 annually, a gap of $37 per year that compounds over a long holding period. On income, HSCZ currently yields 2.95% against 3.31% for SCHD.
Holdings Overlap
HSCZ and SCHD share 1 holdings out of 1763 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in HSCZ | Weight in SCHD | Difference |
|---|---|---|---|
| RF | 0.05% | 0.68% | 0.63% |
Frequently Asked Questions
Which is cheaper, HSCZ or SCHD?
HSCZ has an expense ratio of 0.43% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $37 per year of difference.
Which performed better, HSCZ or SCHD?
Over the past year HSCZ returned +22.43% vs +30.94% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (11 years), HSCZ annualized +8.62% vs +11.31% for SCHD. Past performance does not guarantee future results.
Which is riskier, HSCZ or SCHD?
HSCZ has been the more volatile fund at 13.9% annualized versus 13.7% for SCHD. Worst drawdown: HSCZ -37.1% vs SCHD -33.4%.
Should I hold both HSCZ and SCHD?
HSCZ and SCHD have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HSCZ and SCHD?
HSCZ and SCHD share 1 common holdings with a 0.1% weight overlap. Combined, they hold 1763 unique securities.
Which pays a higher dividend, HSCZ or SCHD?
HSCZ yields 2.95% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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