ITDG vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricITDGSCHDWinner
Expense Ratio0.12%0.06%
AUM$56M$103.7B
Dividend Yield1.43%3.31%
Holdings8104
YTD Return+13.35%+23.53%
1Y Return+24.41%+30.95%
3Y Return (annualized)-+14.72%
5Y Return (annualized)-+9.56%
Volatility (annualized)11.5%13.6%
Max Drawdown-16.6%-33.4%
Fund FamilyiShares by BlackRock (US)Charles Schwab Asset Management
CategoryAllocation/BalancedEquity
InceptionOct 17, 2023Oct 20, 2011

ITDG vs SCHD Performance

iShares LifePath Target Date 2055 ETF (ITDG) 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 ITDG returned +24.41% while SCHD returned +30.95%. Year to date, ITDG is up 13.35% versus a gain of 23.53% for SCHD.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 11.5% for ITDG. 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 -16.6% for ITDG 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

ITDG charges 0.12% per year while SCHD charges 0.06%. On a $10,000 position that is $12 vs $6 annually, a gap of $6 per year that compounds over a long holding period. On income, ITDG currently yields 1.43% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

ITDG and SCHD share 0 holdings out of 107 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, ITDG or SCHD?

ITDG has an expense ratio of 0.12% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $6 per year of difference.

Which performed better, ITDG or SCHD?

Over the past year ITDG returned +24.41% vs +30.95% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), ITDG annualized +24.05% vs +11.35% for SCHD. Past performance does not guarantee future results.

Which is riskier, ITDG or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 11.5% for ITDG. Worst drawdown: ITDG -16.6% vs SCHD -33.4%.

Should I hold both ITDG and SCHD?

ITDG and SCHD have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between ITDG and SCHD?

ITDG and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 107 unique securities.

Which pays a higher dividend, ITDG or SCHD?

ITDG yields 1.43% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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