DFJ vs. SCHD

Last updated Aug 6, 2026

DFJ (WisdomTree Japan SmallCap Dividend Fund) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - DFJ is a Japan Equities fund tracking the WisdomTree Japan SmallCap Dividend 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, DFJ returned 9.27%/yr vs 12.73%/yr for SCHD. Their 0.54 correlation means they have sometimes moved together and sometimes differently. DFJ charges 0.58%/yr vs 0.06%/yr for SCHD.

Performance

DFJ vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Japan SmallCap Dividend Fund (DFJ) 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, DFJ achieves a 17.54% return, which is significantly lower than SCHD's 24.66% return. Over the past 10 years, DFJ has underperformed SCHD with an annualized return of 9.27%, while SCHD has yielded a comparatively higher 12.73% annualized return.

DFJ

• 1D: 1.77%
• 1M: 3.51%
• 6M: 8.52%
• YTD: 17.54%
• 1Y: 27.82%
• 3Y*: 20.63%
• 5Y*: 11.18%
• 10Y*: 9.27%
• ALL TIME*: 6.13%

SCHD

• 1D: -0.62%
• 1M: 4.34%
• 6M: 10.27%
• YTD: 24.66%
• 1Y: 30.42%
• 3Y*: 14.97%
• 5Y*: 9.52%
• 10Y*: 12.73%
• ALL TIME*: 13.42%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
DFJ WisdomTree Japan SmallCap Dividend Fund	$3.65M	$3.56M	$3.94M
SCHD Schwab U.S. Dividend Equity ETF	$862.86M	$734.09M	$695.28M

DFJ vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DFJ WisdomTree Japan SmallCap Dividend Fund	17.54%	31.90%	2.80%	21.81%	-9.00%	0.38%	1.29%	16.98%	-18.53%	32.14%
SCHD Schwab U.S. Dividend Equity ETF	24.66%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	20.85%

Correlation

The correlation between DFJ and SCHD is 0.28, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.29
Correlation (3Y) Balances recent behavior with more history.	0.38
Correlation (5Y) Shows whether the relationship held over a longer period.	0.44
Correlation (10Y) Provides a long-term view across more market conditions.	0.50
Correlation (All Time) Calculated using the full available price history since Oct 20, 2011	0.54

Over the past year, the correlation between DFJ and SCHD has dropped to 0.28 - well below their long-term average of 0.54, suggesting their price drivers have been diverging.

DFJ vs. SCHD - Sectors Allocation Comparison

Sectors	DFJ	SCHD
Industrials	26.8%	7.8%
Consumer Cyclical	15.9%	7.7%
Financial Services	13.8%	9.9%
Basic Materials	13.8%	1.2%
Technology	13.2%	12.7%
Consumer Defensive	7.1%	20.6%
Healthcare	3.7%	20.8%
Real Estate	2.7%	-
Utilities	1.5%	0.1%
Communication Services	1.3%	6.2%
Energy	0.3%	14.1%

Return for Risk

DFJ vs. SCHD — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

DFJ

DFJ Risk / Return Rank: 53
DFJ Sharpe Ratio Rank: 58
DFJ Sortino Ratio Rank: 58
DFJ Omega Ratio Rank: 53
DFJ Calmar Ratio Rank: 52
DFJ Martin Ratio Rank: 45

SCHD

SCHD Risk / Return Rank: 94
SCHD Sharpe Ratio Rank: 94
SCHD Sortino Ratio Rank: 95
SCHD Omega Ratio Rank: 93
SCHD Calmar Ratio Rank: 96
SCHD Martin Ratio Rank: 91

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

DFJ vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Japan SmallCap Dividend Fund (DFJ) 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.

	DFJ	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	1.59	2.77	-1.18
Sortino ratio: Return per unit of downside risk	2.27	4.30	-2.02
Omega ratio: Gain probability vs. loss probability	1.27	1.50	-0.22
Calmar ratio: Return relative to maximum drawdown	2.14	6.62	-4.48
Martin ratio: Return relative to average drawdown	5.67	16.71	-11.04

DFJ vs. SCHD - Sharpe Ratio Comparison

The current DFJ Sharpe Ratio is 1.59, which is lower than the SCHD Sharpe Ratio of 2.77. The chart below compares the historical Sharpe Ratios of DFJ 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

DFJ vs. SCHD - Drawdown Comparison

The maximum DFJ drawdown since its inception was -46.00%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for DFJ and SCHD.

Drawdown Indicators

	DFJ	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-46.00%	-33.37%	-12.63%
Max Drawdown (1Y) Largest decline over 1 year	-13.03%	-4.61%	-8.42%
Max Drawdown (3Y) Largest decline over 3 years	-13.03%	-16.13%	+3.10%
Max Drawdown (5Y) Largest decline over 5 years	-29.71%	-16.85%	-12.86%
Max Drawdown (10Y) Largest decline over 10 years	-40.02%	-33.37%	-6.65%
Current Drawdown Current decline from peak	0.00%	-0.74%	+0.74%
Average Drawdown Average peak-to-trough decline	-11.10%	-3.29%	-7.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.92%	1.82%	+3.10%

Volatility

DFJ vs. SCHD - Volatility Comparison

WisdomTree Japan SmallCap Dividend Fund (DFJ) has a higher volatility of 6.67% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 3.84%. This indicates that DFJ'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

	DFJ	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.67%	3.84%	+2.83%
Volatility (6M) Calculated over the trailing 6-month period	14.91%	7.89%	+7.02%
Volatility (1Y) Calculated over the trailing 1-year period	17.60%	11.06%	+6.54%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.13%	14.38%	+1.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.01%	16.73%	+0.28%

DFJ vs. SCHD - Expense Ratio Comparison

DFJ has a 0.58% expense ratio, which is higher than SCHD's 0.06% expense ratio.

Dividends

DFJ vs. SCHD - Dividend Comparison

DFJ's dividend yield for the trailing twelve months is around 2.50%, less than SCHD's 3.12% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFJ WisdomTree Japan SmallCap Dividend Fund	2.50%	2.68%	2.46%	2.43%	2.62%	2.07%	2.59%	2.24%	1.89%	1.60%	1.76%	1.23%
SCHD Schwab U.S. Dividend Equity ETF	3.12%	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 DFJ and SCHD in my portfolio?

DFJ and SCHD have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DFJ or SCHD?

DFJ has higher volatility (6.67%) compared to SCHD (3.84%). In terms of maximum drawdown, DFJ dropped -46.00% vs SCHD's -33.37%.

Which ETF is better, DFJ or SCHD?

On 10-year performance, SCHD leads with 12.73% vs 9.27% for DFJ. On fees, SCHD is cheaper at 0.06% per year. On volatility, SCHD has been the lower-risk option at 3.84%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFJ or SCHD?

Over the 10-year period, SCHD has performed better with a 12.73% return vs 9.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFJ or SCHD?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.58% for DFJ.

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

SCHD has the higher dividend yield at 3.12%, compared with 2.50% for DFJ.

What is the main difference between DFJ and SCHD?

DFJ is categorized as Japan Equities, while SCHD is Dividend. DFJ tracks WisdomTree Japan SmallCap Dividend Index, while SCHD tracks Dow Jones U.S. Dividend 100 Index. They also come from different issuers: WisdomTree and Charles Schwab. Their fees differ too: 0.58% for DFJ and 0.06% for SCHD.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.77 vs 1.59), 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.