RAAX vs SCHD
RAAX vs SCHD
VanEck Real Assets ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | RAAX | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.69% | 0.06% | |
| AUM | $1.1B | $103.7B | |
| Dividend Yield | 2.07% | 3.31% | |
| Holdings | 18 | 104 | |
| YTD Return | +13.24% | +23.31% | |
| 1Y Return | +27.91% | +30.42% | |
| 3Y Return (annualized) | +18.56% | +14.66% | |
| 5Y Return (annualized) | +13.26% | +9.59% | |
| Volatility (annualized) | 14.7% | 13.6% | |
| Max Drawdown | -33.9% | -33.4% | |
| Fund Family | VanEck | Charles Schwab Asset Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Apr 9, 2018 | Oct 20, 2011 |
RAAX vs SCHD Performance
VanEck Real Assets ETF (RAAX) is a ETF from VanEck and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year RAAX returned +27.91% while SCHD returned +30.42%. Year to date, RAAX is up 13.24% versus a gain of 23.31% for SCHD.
Over three years, RAAX compounded at +18.56% per year against +14.66% for SCHD; over five years the annualized figures are +13.26% and +9.59% respectively. Across the full 8-year window we track, SCHD has the edge at +11.34% annualized vs +8.98%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RAAX has been the more volatile fund, with annualized monthly volatility of 14.7% 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 -33.9% for RAAX 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
RAAX charges 0.69% per year while SCHD charges 0.06%. On a $10,000 position that is $69 vs $6 annually, a gap of $63 per year that compounds over a long holding period. On income, RAAX currently yields 2.07% against 3.31% for SCHD.
Holdings Overlap
RAAX and SCHD share 0 holdings out of 116 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, RAAX or SCHD?
RAAX has an expense ratio of 0.69% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $63 per year of difference.
Which performed better, RAAX or SCHD?
Over the past year RAAX returned +27.91% vs +30.42% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (8 years), RAAX annualized +8.98% vs +11.34% for SCHD. Past performance does not guarantee future results.
Which is riskier, RAAX or SCHD?
RAAX has been the more volatile fund at 14.7% annualized versus 13.6% for SCHD. Worst drawdown: RAAX -33.9% vs SCHD -33.4%.
Should I hold both RAAX and SCHD?
RAAX and SCHD have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RAAX and SCHD?
RAAX and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 116 unique securities.
Which pays a higher dividend, RAAX or SCHD?
RAAX yields 2.07% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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