DES vs. SCHD

Last updated Jun 3, 2026

DES (WisdomTree U.S. SmallCap Dividend Fund) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - DES is a Small Cap Blend Equities fund tracking the WisdomTree SmallCap Dividend (TR), while SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. Both are passively managed. Over the past 10 years, DES returned 8.17%/yr vs 12.77%/yr for SCHD. Their correlation of 0.81 suggests significant overlap in exposure. DES charges 0.38%/yr vs 0.06%/yr for SCHD.

Performance

DES vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree U.S. SmallCap Dividend Fund (DES) 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, DES achieves a 16.63% return, which is significantly lower than SCHD's 19.01% return. Over the past 10 years, DES has underperformed SCHD with an annualized return of 8.17%, while SCHD has yielded a comparatively higher 12.77% annualized return.

DES

• 1D: 0.99%
• 1M: 0.53%
• YTD: 16.63%
• 6M: 17.07%
• 1Y: 28.87%
• 3Y*: 14.65%
• 5Y*: 6.21%
• 10Y*: 8.17%

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)

DES vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DES WisdomTree U.S. SmallCap Dividend Fund	16.63%	0.25%	9.93%	16.50%	-10.96%	26.51%	-4.26%	20.26%	-12.85%	8.64%
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 DES and SCHD is 0.71, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.71
Correlation (3Y) Calculated over the trailing 3-year period	0.78
Correlation (5Y) Calculated over the trailing 5-year period	0.82
Correlation (10Y) Calculated over the trailing 10-year period	0.81
Correlation (All Time) Calculated using the full available price history since Oct 21, 2011	0.81

The correlation between DES and SCHD shifts across timeframes, from 0.71 (1 year) to 0.82 (5 years), reflecting how their relationship changes across market environments.

DES vs. SCHD - Sectors Allocation Comparison

Sectors	DES	SCHD
Financial Services	23.7%	9.3%
Consumer Cyclical	14.8%	6.3%
Industrials	13.3%	7.5%
Energy	10.7%	16.2%
Real Estate	9.6%	-
Basic Materials	6.0%	1.2%
Technology	5.5%	16.4%
Utilities	4.6%	0.0%
Consumer Defensive	4.3%	19.2%
Communication Services	2.8%	6.3%
Healthcare	1.7%	18.8%

Return for Risk

DES vs. SCHD — Risk / Return Rank

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

DES

DES Risk / Return Rank: 57
DES Sharpe Ratio Rank: 51
DES Sortino Ratio Rank: 54
DES Omega Ratio Rank: 49
DES Calmar Ratio Rank: 72
DES Martin Ratio Rank: 59

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.

DES vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree U.S. SmallCap Dividend Fund (DES) 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.

	DES	SCHD	Difference
Sharpe ratio Return per unit of total volatility	1.77	2.57	-0.81
Sortino ratio Return per unit of downside risk	2.64	3.98	-1.34
Omega ratio Gain probability vs. loss probability	1.31	1.46	-0.15
Calmar ratio Return relative to maximum drawdown	3.67	6.17	-2.50
Martin ratio Return relative to average drawdown	10.48	15.20	-4.72
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DES vs. SCHD - Sharpe Ratio Comparison

The current DES Sharpe Ratio is 1.77, which is lower than the SCHD Sharpe Ratio of 2.57. The chart below compares the historical Sharpe Ratios of DES 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

	DES	SCHD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.77	2.57	-0.81
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.32	0.59	-0.27
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.37	0.77	-0.39
Sharpe Ratio (All Time) Calculated using the full available price history	0.32	0.86	-0.54

Drawdowns

DES vs. SCHD - Drawdown Comparison

The maximum DES drawdown since its inception was -65.48%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for DES and SCHD.

Drawdown Indicators

	DES	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-65.48%	-33.37%	-32.11%
Max Drawdown (1Y) Largest decline over 1 year	-7.64%	-4.61%	-3.03%
Max Drawdown (3Y) Largest decline over 3 years	-25.16%	-16.13%	-9.03%
Max Drawdown (5Y) Largest decline over 5 years	-25.16%	-16.85%	-8.31%
Max Drawdown (10Y) Largest decline over 10 years	-45.65%	-33.37%	-12.28%
Current Drawdown Current decline from peak	-0.28%	-1.40%	+1.12%
Average Drawdown Average peak-to-trough decline	-9.68%	-3.32%	-6.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.68%	1.87%	+0.81%

Volatility

DES vs. SCHD - Volatility Comparison

WisdomTree U.S. SmallCap Dividend Fund (DES) has a higher volatility of 4.24% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 2.92%. This indicates that DES'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

	DES	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.24%	2.92%	+1.32%
Volatility (6M) Calculated over the trailing 6-month period	10.94%	7.66%	+3.28%
Volatility (1Y) Calculated over the trailing 1-year period	16.42%	10.96%	+5.46%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.56%	14.38%	+5.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.97%	16.72%	+5.25%

DES vs. SCHD - Expense Ratio Comparison

DES has a 0.38% expense ratio, which is higher than SCHD's 0.06% expense ratio.

Dividends

DES vs. SCHD - Dividend Comparison

DES's dividend yield for the trailing twelve months is around 2.37%, less than SCHD's 3.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DES WisdomTree U.S. SmallCap Dividend Fund	2.37%	2.85%	2.81%	2.65%	2.89%	2.31%	2.75%	2.68%	3.65%	2.89%	2.70%	3.09%
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 DES and SCHD in my portfolio?

DES and SCHD have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DES or SCHD?

DES has higher volatility (4.24%) compared to SCHD (2.92%). In terms of maximum drawdown, DES dropped -65.48% vs SCHD's -33.37%.

Which ETF is better, DES or SCHD?

On 10-year performance, SCHD leads with 12.77% vs 8.17% for DES. 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, DES or SCHD?

Over the 10-year period, SCHD has performed better with a 12.77% return vs 8.17%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DES or SCHD?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.38% for DES.

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

SCHD has the higher dividend yield at 3.26%, compared with 2.37% for DES.

What is the main difference between DES and SCHD?

DES is categorized as Small Cap Blend Equities, while SCHD is Dividend. DES tracks WisdomTree SmallCap Dividend (TR), while SCHD tracks Dow Jones U.S. Dividend 100 Index. They also come from different issuers: WisdomTree and Charles Schwab. Their fees differ too: 0.38% for DES and 0.06% for SCHD.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.57 vs 1.77), 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.