AOA vs. SCHD

Last updated Jun 3, 2026

AOA (iShares Core Aggressive Allocation ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - AOA is a Diversified Portfolio fund tracking the S&P Target Risk Aggressive Index, while SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. Both are passively managed. Over the past 10 years, AOA returned 10.61%/yr vs 12.77%/yr for SCHD. A 0.80 correlation means they provide meaningful diversification when combined. AOA charges 0.25%/yr vs 0.06%/yr for SCHD.

Performance

AOA vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Core Aggressive Allocation ETF (AOA) and Schwab U.S. Dividend Equity ETF (SCHD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AOA achieves a 10.48% return, which is significantly lower than SCHD's 19.01% return. Over the past 10 years, AOA has underperformed SCHD with an annualized return of 10.61%, while SCHD has yielded a comparatively higher 12.77% annualized return.

AOA

• 1D: 0.37%
• 1M: 4.06%
• YTD: 10.48%
• 6M: 11.51%
• 1Y: 25.21%
• 3Y*: 17.71%
• 5Y*: 9.42%
• 10Y*: 10.61%

SCHD

• 1D: 0.59%
• 1M: 1.60%
• YTD: 19.01%
• 6M: 20.36%
• 1Y: 28.08%
• 3Y*: 15.09%
• 5Y*: 8.49%
• 10Y*: 12.77%

*Multi-year figures are annualized to reflect compound growth (CAGR)

AOA vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AOA iShares Core Aggressive Allocation ETF	10.48%	19.59%	13.55%	18.27%	-16.23%	15.42%	12.82%	22.60%	-7.86%	20.05%
SCHD Schwab U.S. Dividend Equity ETF	19.01%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	20.85%

Correlation

The correlation between AOA and SCHD is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.39
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (5Y) Calculated over the trailing 5-year period	0.72
Correlation (10Y) Calculated over the trailing 10-year period	0.76
Correlation (All Time) Calculated using the full available price history since Oct 21, 2011	0.80

Over the past year, the correlation between AOA and SCHD has dropped to 0.39 - well below their long-term average of 0.80, suggesting their price drivers have been diverging.

AOA vs. SCHD - Sectors Allocation Comparison

Sectors	AOA	SCHD
Technology	27.4%	16.4%
Financial Services	16.1%	9.3%
Industrials	12.0%	7.5%
Consumer Cyclical	9.5%	6.3%
Communication Services	8.3%	6.3%
Healthcare	8.0%	18.8%
Consumer Defensive	5.0%	19.2%
Energy	4.3%	16.2%
Basic Materials	4.2%	1.2%
Utilities	2.7%	0.0%
Real Estate	2.4%	-

Return for Risk

AOA vs. SCHD — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AOA

AOA Risk / Return Rank: 71
AOA Sharpe Ratio Rank: 72
AOA Sortino Ratio Rank: 73
AOA Omega Ratio Rank: 74
AOA Calmar Ratio Rank: 63
AOA Martin Ratio Rank: 73

SCHD

SCHD Risk / Return Rank: 82
SCHD Sharpe Ratio Rank: 78
SCHD Sortino Ratio Rank: 87
SCHD Omega Ratio Rank: 76
SCHD Calmar Ratio Rank: 92
SCHD Martin Ratio Rank: 77

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AOA vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core Aggressive Allocation ETF (AOA) and Schwab U.S. Dividend Equity ETF (SCHD). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	AOA	SCHD	Difference
Sharpe ratio Return per unit of total volatility	2.39	2.57	-0.19
Sortino ratio Return per unit of downside risk	3.35	3.98	-0.63
Omega ratio Gain probability vs. loss probability	1.44	1.46	-0.02
Calmar ratio Return relative to maximum drawdown	3.16	6.17	-3.01
Martin ratio Return relative to average drawdown	14.04	15.20	-1.16
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AOA vs. SCHD - Sharpe Ratio Comparison

The current AOA Sharpe Ratio is 2.39, which is comparable to the SCHD Sharpe Ratio of 2.57. The chart below compares the historical Sharpe Ratios of AOA and SCHD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	AOA	SCHD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.39	2.57	-0.19
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.73	0.59	+0.14
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.79	0.77	+0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.69	0.86	-0.17

Drawdowns

AOA vs. SCHD - Drawdown Comparison

The maximum AOA drawdown since its inception was -28.38%, smaller than the maximum SCHD drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for AOA and SCHD.

Drawdown Indicators

	AOA	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-28.38%	-33.37%	+4.99%
Max Drawdown (1Y) Largest decline over 1 year	-8.20%	-4.61%	-3.59%
Max Drawdown (3Y) Largest decline over 3 years	-12.94%	-16.13%	+3.19%
Max Drawdown (5Y) Largest decline over 5 years	-23.62%	-16.85%	-6.77%
Max Drawdown (10Y) Largest decline over 10 years	-28.38%	-33.37%	+4.99%
Current Drawdown Current decline from peak	0.00%	-1.40%	+1.40%
Average Drawdown Average peak-to-trough decline	-4.05%	-3.32%	-0.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.84%	1.87%	-0.03%

Volatility

AOA vs. SCHD - Volatility Comparison

iShares Core Aggressive Allocation ETF (AOA) has a higher volatility of 3.27% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 2.92%. This indicates that AOA's price experiences larger fluctuations and is considered to be riskier than SCHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AOA	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.27%	2.92%	+0.35%
Volatility (6M) Calculated over the trailing 6-month period	8.52%	7.66%	+0.86%
Volatility (1Y) Calculated over the trailing 1-year period	10.62%	10.96%	-0.34%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.98%	14.38%	-1.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.55%	16.72%	-3.17%

AOA vs. SCHD - Expense Ratio Comparison

AOA has a 0.25% expense ratio, which is higher than SCHD's 0.06% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

AOA vs. SCHD - Dividend Comparison

AOA's dividend yield for the trailing twelve months is around 2.03%, less than SCHD's 3.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AOA iShares Core Aggressive Allocation ETF	2.03%	2.18%	2.30%	2.22%	2.10%	1.67%	1.71%	2.50%	2.37%	5.09%	2.26%	2.15%
SCHD Schwab U.S. Dividend Equity ETF	3.26%	3.82%	3.64%	3.49%	3.39%	2.78%	3.16%	2.98%	3.06%	2.63%	2.89%	2.97%

Frequently Asked Questions

Can I hold both AOA and SCHD in my portfolio?

AOA and SCHD have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AOA or SCHD?

AOA has higher volatility (3.27%) compared to SCHD (2.92%). In terms of maximum drawdown, AOA dropped -28.38% vs SCHD's -33.37%.

Which ETF is better, AOA or SCHD?

On 10-year performance, SCHD leads with 12.77% vs 10.61% for AOA. On fees, SCHD is cheaper at 0.06% per year. On volatility, SCHD has been the lower-risk option at 2.92%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AOA or SCHD?

Over the 10-year period, SCHD has performed better with a 12.77% return vs 10.61%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AOA or SCHD?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.25% for AOA.

Which ETF pays a higher dividend yield, AOA or SCHD?

SCHD has the higher dividend yield at 3.26%, compared with 2.03% for AOA.

What is the main difference between AOA and SCHD?

AOA is categorized as Diversified Portfolio, while SCHD is Dividend. AOA tracks S&P Target Risk Aggressive Index, while SCHD tracks Dow Jones U.S. Dividend 100 Index. They also come from different issuers: iShares and Charles Schwab. Their fees differ too: 0.25% for AOA and 0.06% for SCHD.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.57 vs 2.39), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.