IEMG vs SCHD
IEMG vs SCHD
iShares Core MSCI Emerging Markets ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. IEMG delivered stronger 1-year returns. IEMG offers more diversification with 1154 holdings.
Side-by-Side Comparison
| Metric | IEMG | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.06% | |
| AUM | $149.8B | $103.7B | |
| Dividend Yield | 2.17% | 3.31% | |
| Holdings | 2,869 | 104 | |
| YTD Return | +16.86% | +24.26% | |
| 1Y Return | +33.41% | +31.38% | |
| 3Y Return (annualized) | +20.05% | +15.08% | |
| 5Y Return (annualized) | +7.50% | +9.72% | |
| Volatility (annualized) | 16.4% | 13.6% | |
| Max Drawdown | -42.2% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Oct 18, 2012 | Oct 20, 2011 |
IEMG vs SCHD Performance
iShares Core MSCI Emerging Markets ETF (IEMG) 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 IEMG returned +33.41% while SCHD returned +31.38%. Year to date, IEMG is up 16.86% versus a gain of 24.26% for SCHD.
Over three years, IEMG compounded at +20.05% per year against +15.08% for SCHD; over five years the annualized figures are +7.50% and +9.72% respectively. Across the full 14-year window we track, SCHD has the edge at +11.39% annualized vs +4.66%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IEMG has been the more volatile fund, with annualized monthly volatility of 16.4% 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 -42.2% for IEMG 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IEMG charges 0.09% per year while SCHD charges 0.06%. On a $10,000 position that is $9 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, IEMG currently yields 2.17% against 3.31% for SCHD.
Holdings Overlap
IEMG and SCHD share 0 holdings out of 1254 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, IEMG or SCHD?
IEMG has an expense ratio of 0.09% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, IEMG or SCHD?
Over the past year IEMG returned +33.41% vs +31.38% for SCHD, so IEMG leads on 1-year performance. Over the longest common window we track (14 years), IEMG annualized +4.66% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, IEMG or SCHD?
IEMG has been the more volatile fund at 16.4% annualized versus 13.6% for SCHD. Worst drawdown: IEMG -42.2% vs SCHD -33.4%.
Should I hold both IEMG and SCHD?
IEMG and SCHD have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IEMG and SCHD?
IEMG and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1254 unique securities.
Which pays a higher dividend, IEMG or SCHD?
IEMG yields 2.17% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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