IMCG vs. SCHD

Last updated Jun 13, 2026

IMCG (iShares Morningstar Mid-Cap Growth ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - IMCG is a Mid Cap Growth Equities fund tracking the Morningstar US Mid Cap Broad Growth 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, IMCG returned 14.48%/yr vs 12.91%/yr for SCHD. A 0.70 correlation means they provide meaningful diversification when combined. Both charge a 0.06% expense ratio.

Performance

IMCG vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Morningstar Mid-Cap Growth ETF (IMCG) 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, IMCG achieves a 18.63% return, which is significantly lower than SCHD's 20.66% return. Over the past 10 years, IMCG has outperformed SCHD with an annualized return of 14.48%, while SCHD has yielded a comparatively lower 12.91% annualized return.

IMCG

• 1D: 0.83%
• 1M: 4.95%
• YTD: 18.63%
• 6M: 17.29%
• 1Y: 21.82%
• 3Y*: 17.50%
• 5Y*: 7.95%
• 10Y*: 14.48%

SCHD

• 1D: 0.89%
• 1M: 3.37%
• YTD: 20.66%
• 6M: 19.57%
• 1Y: 26.16%
• 3Y*: 14.90%
• 5Y*: 8.75%
• 10Y*: 12.91%

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

IMCG vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IMCG iShares Morningstar Mid-Cap Growth ETF	18.63%	6.55%	18.14%	20.73%	-25.79%	15.39%	45.64%	35.70%	-3.68%	25.57%
SCHD Schwab U.S. Dividend Equity ETF	20.66%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	20.85%

Correlation

The correlation between IMCG and SCHD is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.46
Correlation (3Y) Calculated over the trailing 3-year period	0.62
Correlation (5Y) Calculated over the trailing 5-year period	0.69
Correlation (10Y) Calculated over the trailing 10-year period	0.66
Correlation (All Time) Calculated using the full available price history since Oct 20, 2011	0.70

Over the past year, the correlation between IMCG and SCHD has dropped to 0.46 - well below their long-term average of 0.70, suggesting their price drivers have been diverging.

IMCG vs. SCHD - Sectors Allocation Comparison

Sectors	IMCG	SCHD
Technology	30.4%	16.4%
Industrials	26.6%	7.5%
Consumer Cyclical	10.0%	6.3%
Financial Services	9.1%	9.3%
Healthcare	7.4%	18.8%
Basic Materials	4.5%	1.2%
Real Estate	3.4%	-
Utilities	2.7%	0.0%
Communication Services	2.6%	6.3%
Energy	2.1%	16.2%
Consumer Defensive	1.2%	19.2%

Return for Risk

IMCG vs. SCHD — Risk / Return Rank

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

IMCG

IMCG Risk / Return Rank: 46
IMCG Sharpe Ratio Rank: 43
IMCG Sortino Ratio Rank: 42
IMCG Omega Ratio Rank: 41
IMCG Calmar Ratio Rank: 49
IMCG Martin Ratio Rank: 54

SCHD

SCHD Risk / Return Rank: 87
SCHD Sharpe Ratio Rank: 86
SCHD Sortino Ratio Rank: 90
SCHD Omega Ratio Rank: 83
SCHD Calmar Ratio Rank: 93
SCHD Martin Ratio Rank: 81

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.

IMCG vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Morningstar Mid-Cap Growth ETF (IMCG) 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.

	IMCG	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	1.33	2.41	-1.08
Sortino ratio: Return per unit of downside risk	1.90	3.72	-1.82
Omega ratio: Gain probability vs. loss probability	1.24	1.43	-0.20
Calmar ratio: Return relative to maximum drawdown	2.16	5.70	-3.54
Martin ratio: Return relative to average drawdown	8.22	13.97	-5.74

IMCG vs. SCHD - Sharpe Ratio Comparison

The current IMCG Sharpe Ratio is 1.33, which is lower than the SCHD Sharpe Ratio of 2.41. The chart below compares the historical Sharpe Ratios of IMCG 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

IMCG vs. SCHD - Drawdown Comparison

The maximum IMCG drawdown since its inception was -58.96%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for IMCG and SCHD.

Drawdown Indicators

	IMCG	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-58.96%	-33.37%	-25.59%
Max Drawdown (1Y) Largest decline over 1 year	-10.17%	-4.61%	-5.56%
Max Drawdown (3Y) Largest decline over 3 years	-21.92%	-16.13%	-5.79%
Max Drawdown (5Y) Largest decline over 5 years	-35.08%	-16.85%	-18.23%
Max Drawdown (10Y) Largest decline over 10 years	-35.08%	-33.37%	-1.71%
Current Drawdown Current decline from peak	-1.66%	-0.03%	-1.63%
Average Drawdown Average peak-to-trough decline	-9.21%	-3.31%	-5.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.66%	1.89%	+0.77%

Volatility

IMCG vs. SCHD - Volatility Comparison

iShares Morningstar Mid-Cap Growth ETF (IMCG) has a higher volatility of 7.07% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 3.05%. This indicates that IMCG'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

	IMCG	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.07%	3.05%	+4.02%
Volatility (6M) Calculated over the trailing 6-month period	13.73%	7.53%	+6.20%
Volatility (1Y) Calculated over the trailing 1-year period	16.49%	10.93%	+5.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.31%	14.38%	+5.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.58%	16.72%	+3.86%

IMCG vs. SCHD - Expense Ratio Comparison

Both IMCG and SCHD have an expense ratio of 0.06%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

IMCG vs. SCHD - Dividend Comparison

IMCG's dividend yield for the trailing twelve months is around 0.66%, less than SCHD's 3.22% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IMCG iShares Morningstar Mid-Cap Growth ETF	0.66%	0.78%	0.78%	0.85%	0.91%	0.41%	0.09%	0.30%	0.35%	0.45%	0.52%	0.38%
SCHD Schwab U.S. Dividend Equity ETF	3.22%	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 IMCG and SCHD in my portfolio?

IMCG and SCHD have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IMCG or SCHD?

IMCG has higher volatility (7.07%) compared to SCHD (3.05%). In terms of maximum drawdown, IMCG dropped -58.96% vs SCHD's -33.37%.

Which ETF is better, IMCG or SCHD?

On 10-year performance, IMCG leads with 14.48% vs 12.91% for SCHD. Both ETFs have the same 0.06% expense ratio. On volatility, SCHD has been the lower-risk option at 3.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IMCG or SCHD?

Over the 10-year period, IMCG has performed better with a 14.48% return vs 12.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IMCG or SCHD?

IMCG and SCHD have the same expense ratio: 0.06% per year.

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

SCHD has the higher dividend yield at 3.22%, compared with 0.66% for IMCG.

What is the main difference between IMCG and SCHD?

IMCG is categorized as Mid Cap Growth Equities, while SCHD is Dividend. IMCG tracks Morningstar US Mid Cap Broad Growth Index, while SCHD tracks Dow Jones U.S. Dividend 100 Index. They also come from different issuers: iShares and Charles Schwab.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.41 vs 1.33), 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.