IYW vs SCHD

Quick Verdict

SCHD has a lower expense ratio. IYW delivered stronger 1-year returns. IYW offers more diversification with 150 holdings.

Lower Fees: SCHDHigher Returns: IYWMore Diversified: IYW

Side-by-Side Comparison

MetricIYWSCHDWinner
Expense Ratio0.38%0.06%
AUM$23.3B$103.7B
Dividend Yield0.10%3.31%
Holdings153104
YTD Return+25.79%+23.31%
1Y Return+39.93%+30.42%
3Y Return (annualized)+32.31%+14.66%
5Y Return (annualized)+19.44%+9.59%
Volatility (annualized)24.6%13.6%
Max Drawdown-81.9%-33.4%
Fund FamilyiShares by BlackRock (US)Charles Schwab Asset Management
CategoryEquityEquity
InceptionMay 15, 2000Oct 20, 2011

IYW vs SCHD Performance

iShares US Technology ETF (IYW) 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 IYW returned +39.93% while SCHD returned +30.42%. Year to date, IYW is up 25.79% versus a gain of 23.31% for SCHD.

Over three years, IYW compounded at +32.31% per year against +14.66% for SCHD; over five years the annualized figures are +19.44% and +9.59% respectively. Across the full 15-year window we track, SCHD has the edge at +11.34% annualized vs +8.89%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

IYW has been the more volatile fund, with annualized monthly volatility of 24.6% 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 -81.9% for IYW 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

IYW charges 0.38% per year while SCHD charges 0.06%. On a $10,000 position that is $38 vs $6 annually, a gap of $32 per year that compounds over a long holding period. On income, IYW currently yields 0.10% against 3.31% for SCHD.

Holdings Overlap

2.4%overlap

IYW and SCHD share 3 holdings out of 247 unique holdings combined, representing a 2.4% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in IYWWeight in SCHDDifference
TXN1.39%3.70%2.31%
QCOM0.99%2.72%1.73%
SWKS0.05%0.24%0.19%

Frequently Asked Questions

Which is cheaper, IYW or SCHD?

IYW has an expense ratio of 0.38% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $32 per year of difference.

Which performed better, IYW or SCHD?

Over the past year IYW returned +39.93% vs +30.42% for SCHD, so IYW leads on 1-year performance. Over the longest common window we track (15 years), IYW annualized +8.89% vs +11.34% for SCHD. Past performance does not guarantee future results.

Which is riskier, IYW or SCHD?

IYW has been the more volatile fund at 24.6% annualized versus 13.6% for SCHD. Worst drawdown: IYW -81.9% vs SCHD -33.4%.

Should I hold both IYW and SCHD?

IYW 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 IYW and SCHD?

IYW and SCHD share 3 common holdings with a 2.4% weight overlap. Combined, they hold 247 unique securities.

Which pays a higher dividend, IYW or SCHD?

IYW yields 0.10% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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