DFAC vs. SCHD

Last updated Jun 24, 2026

DFAC (Dimensional U.S. Core Equity 2 ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - DFAC is a Large Cap Blend Equities fund actively managed by Dimensional, while SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. DFAC is actively managed, while SCHD is passively managed. Over the past 5 years, DFAC returned 11.69%/yr vs 8.71%/yr for SCHD. A 0.79 correlation means they provide meaningful diversification when combined. DFAC charges 0.17%/yr vs 0.06%/yr for SCHD.

Performance

DFAC vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional U.S. Core Equity 2 ETF (DFAC) 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, DFAC achieves a 10.46% return, which is significantly lower than SCHD's 17.72% return.

DFAC

• 1D: -1.29%
• 1M: 0.07%
• YTD: 10.46%
• 6M: 9.33%
• 1Y: 25.95%
• 3Y*: 19.52%
• 5Y*: 11.69%
• 10Y*: —

SCHD

• 1D: 0.41%
• 1M: -2.47%
• YTD: 17.72%
• 6M: 17.25%
• 1Y: 24.56%
• 3Y*: 14.60%
• 5Y*: 8.71%
• 10Y*: 12.72%

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

DFAC vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
DFAC Dimensional U.S. Core Equity 2 ETF	10.46%	15.66%	19.61%	21.96%	-14.93%	9.55%
SCHD Schwab U.S. Dividend Equity ETF	17.72%	4.34%	11.66%	4.54%	-3.26%	6.96%

Correlation

The correlation between DFAC and SCHD is 0.51, 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	0.51
Correlation (3Y) Calculated over the trailing 3-year period	0.68
Correlation (5Y) Calculated over the trailing 5-year period	0.79
Correlation (All Time) Calculated using the full available price history since Jun 14, 2021	0.79

Over the past year, the correlation between DFAC and SCHD has dropped to 0.51 - well below their long-term average of 0.79, suggesting their price drivers have been diverging.

DFAC vs. SCHD - Sectors Allocation Comparison

Sectors	DFAC	SCHD
Technology	31.2%	19.4%
Financial Services	13.8%	9.1%
Industrials	12.4%	7.4%
Consumer Cyclical	10.6%	6.7%
Healthcare	9.1%	18.4%
Communication Services	7.8%	6.0%
Energy	5.3%	14.6%
Consumer Defensive	4.7%	18.5%
Basic Materials	3.2%	1.2%
Utilities	1.8%	0.0%
Real Estate	0.2%	-

Return for Risk

DFAC vs. SCHD — Risk / Return Rank

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

DFAC

DFAC Risk / Return Rank: 66
DFAC Sharpe Ratio Rank: 66
DFAC Sortino Ratio Rank: 64
DFAC Omega Ratio Rank: 63
DFAC Calmar Ratio Rank: 64
DFAC Martin Ratio Rank: 74

SCHD

SCHD Risk / Return Rank: 77
SCHD Sharpe Ratio Rank: 72
SCHD Sortino Ratio Rank: 80
SCHD Omega Ratio Rank: 70
SCHD Calmar Ratio Rank: 90
SCHD Martin Ratio Rank: 71

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.

DFAC vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional U.S. Core Equity 2 ETF (DFAC) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	DFAC	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	2.07	2.23	-0.16
Sortino ratio: Return per unit of downside risk	2.84	3.40	-0.56
Omega ratio: Gain probability vs. loss probability	1.37	1.40	-0.03
Calmar ratio: Return relative to maximum drawdown	3.07	5.35	-2.27
Martin ratio: Return relative to average drawdown	13.40	12.94	+0.46

DFAC vs. SCHD - Sharpe Ratio Comparison

The current DFAC Sharpe Ratio is 2.07, which is comparable to the SCHD Sharpe Ratio of 2.23. The chart below compares the historical Sharpe Ratios of DFAC 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.

Drawdowns

DFAC vs. SCHD - Drawdown Comparison

The maximum DFAC drawdown since its inception was -23.12%, smaller than the maximum SCHD drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for DFAC and SCHD.

Drawdown Indicators

	DFAC	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-23.12%	-33.37%	+10.25%
Max Drawdown (1Y) Largest decline over 1 year	-8.49%	-4.61%	-3.88%
Max Drawdown (3Y) Largest decline over 3 years	-20.02%	-16.13%	-3.89%
Max Drawdown (5Y) Largest decline over 5 years	-23.12%	-16.85%	-6.27%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.37%	—
Current Drawdown Current decline from peak	-2.07%	-2.47%	+0.40%
Average Drawdown Average peak-to-trough decline	-5.40%	-3.31%	-2.09%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.94%	1.90%	+0.04%

Volatility

DFAC vs. SCHD - Volatility Comparison

Dimensional U.S. Core Equity 2 ETF (DFAC) has a higher volatility of 4.56% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 3.58%. This indicates that DFAC'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

	DFAC	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.56%	3.58%	+0.98%
Volatility (6M) Calculated over the trailing 6-month period	9.73%	7.73%	+2.00%
Volatility (1Y) Calculated over the trailing 1-year period	12.64%	11.07%	+1.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.15%	14.36%	+2.79%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.14%	16.71%	+0.43%

DFAC vs. SCHD - Expense Ratio Comparison

DFAC has a 0.17% 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

DFAC vs. SCHD - Dividend Comparison

DFAC's dividend yield for the trailing twelve months is around 0.92%, less than SCHD's 3.30% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFAC Dimensional U.S. Core Equity 2 ETF	0.92%	0.97%	1.03%	1.20%	1.50%	0.88%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SCHD Schwab U.S. Dividend Equity ETF	3.30%	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 DFAC and SCHD in my portfolio?

DFAC and SCHD have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DFAC or SCHD?

DFAC has higher volatility (4.56%) compared to SCHD (3.58%). In terms of maximum drawdown, DFAC dropped -23.12% vs SCHD's -33.37%.

Which ETF is better, DFAC or SCHD?

On 5-year performance, DFAC leads with 11.69% vs 8.71% for SCHD. On fees, SCHD is cheaper at 0.06% per year. On volatility, SCHD has been the lower-risk option at 3.58%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFAC or SCHD?

Over the 5-year period, DFAC has performed better with a 11.69% return vs 8.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFAC or SCHD?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.17% for DFAC.

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

SCHD has the higher dividend yield at 3.30%, compared with 0.92% for DFAC.

What is the main difference between DFAC and SCHD?

DFAC is categorized as Large Cap Blend Equities, while SCHD is Dividend. They also come from different issuers: Dimensional and Charles Schwab. Their fees differ too: 0.17% for DFAC and 0.06% for SCHD.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.23 vs 2.07), 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.