IQDY vs. SCHD

Last updated Jun 24, 2026

IQDY (FlexShares International Quality Dividend Dynamic Index Fund) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - IQDY is a Foreign Large Cap Equities fund tracking the Northern Trust International Quality Dividend Dynamic 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, IQDY returned 12.19%/yr vs 12.72%/yr for SCHD. A 0.62 correlation means they provide meaningful diversification when combined. IQDY charges 0.47%/yr vs 0.06%/yr for SCHD.

Performance

IQDY vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares International Quality Dividend Dynamic Index Fund (IQDY) and Schwab U.S. Dividend Equity ETF (SCHD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with IQDY having a 17.66% return and SCHD slightly higher at 17.72%. Both investments have delivered pretty close results over the past 10 years, with IQDY having a 12.19% annualized return and SCHD not far ahead at 12.72%.

IQDY

• 1D: -3.13%
• 1M: 2.33%
• YTD: 17.66%
• 6M: 17.70%
• 1Y: 40.59%
• 3Y*: 24.61%
• 5Y*: 11.84%
• 10Y*: 12.19%

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)

IQDY vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IQDY FlexShares International Quality Dividend Dynamic Index Fund	17.66%	37.44%	5.97%	23.45%	-15.78%	12.00%	9.54%	27.27%	-20.04%	24.06%
SCHD Schwab U.S. Dividend Equity ETF	17.72%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	20.85%

Correlation

The correlation between IQDY and SCHD is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.37
Correlation (3Y) Calculated over the trailing 3-year period	0.50
Correlation (5Y) Calculated over the trailing 5-year period	0.61
Correlation (10Y) Calculated over the trailing 10-year period	0.63
Correlation (All Time) Calculated using the full available price history since Apr 16, 2013	0.62

Over the past year, the correlation between IQDY and SCHD has dropped to 0.37 - well below their long-term average of 0.62, suggesting their price drivers have been diverging.

IQDY vs. SCHD - Sectors Allocation Comparison

Sectors	IQDY	SCHD
Financial Services	25.5%	9.1%
Technology	21.3%	19.4%
Industrials	13.8%	7.4%
Consumer Cyclical	8.7%	6.7%
Basic Materials	7.9%	1.2%
Energy	6.6%	14.6%
Healthcare	5.3%	18.4%
Consumer Defensive	3.4%	18.5%
Communication Services	3.3%	6.0%
Utilities	3.0%	0.0%
Real Estate	1.2%	-

Return for Risk

IQDY vs. SCHD — Risk / Return Rank

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

IQDY

IQDY Risk / Return Rank: 79
IQDY Sharpe Ratio Rank: 80
IQDY Sortino Ratio Rank: 76
IQDY Omega Ratio Rank: 79
IQDY Calmar Ratio Rank: 80
IQDY Martin Ratio Rank: 81

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.

IQDY vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares International Quality Dividend Dynamic Index Fund (IQDY) 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.

	IQDY	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	2.39	2.23	+0.16
Sortino ratio: Return per unit of downside risk	3.14	3.40	-0.26
Omega ratio: Gain probability vs. loss probability	1.43	1.40	+0.04
Calmar ratio: Return relative to maximum drawdown	3.92	5.35	-1.43
Martin ratio: Return relative to average drawdown	15.11	12.94	+2.18

IQDY vs. SCHD - Sharpe Ratio Comparison

The current IQDY Sharpe Ratio is 2.39, which is comparable to the SCHD Sharpe Ratio of 2.23. The chart below compares the historical Sharpe Ratios of IQDY 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

IQDY vs. SCHD - Drawdown Comparison

The maximum IQDY drawdown since its inception was -39.60%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for IQDY and SCHD.

Drawdown Indicators

	IQDY	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-39.60%	-33.37%	-6.23%
Max Drawdown (1Y) Largest decline over 1 year	-10.42%	-4.61%	-5.81%
Max Drawdown (3Y) Largest decline over 3 years	-14.76%	-16.13%	+1.37%
Max Drawdown (5Y) Largest decline over 5 years	-32.30%	-16.85%	-15.45%
Max Drawdown (10Y) Largest decline over 10 years	-39.60%	-33.37%	-6.23%
Current Drawdown Current decline from peak	-3.13%	-2.47%	-0.66%
Average Drawdown Average peak-to-trough decline	-9.07%	-3.31%	-5.76%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.69%	1.90%	+0.79%

Volatility

IQDY vs. SCHD - Volatility Comparison

FlexShares International Quality Dividend Dynamic Index Fund (IQDY) has a higher volatility of 7.34% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 3.58%. This indicates that IQDY'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

	IQDY	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.34%	3.58%	+3.76%
Volatility (6M) Calculated over the trailing 6-month period	14.86%	7.73%	+7.13%
Volatility (1Y) Calculated over the trailing 1-year period	17.10%	11.07%	+6.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.02%	14.36%	+3.66%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.23%	16.71%	+1.52%

IQDY vs. SCHD - Expense Ratio Comparison

IQDY has a 0.47% expense ratio, which is higher than SCHD's 0.06% expense ratio.

Dividends

IQDY vs. SCHD - Dividend Comparison

IQDY's dividend yield for the trailing twelve months is around 2.98%, less than SCHD's 3.30% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IQDY FlexShares International Quality Dividend Dynamic Index Fund	2.98%	3.26%	6.95%	6.45%	5.52%	3.89%	2.62%	3.85%	5.97%	3.57%	3.77%	4.08%
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 IQDY and SCHD in my portfolio?

IQDY and SCHD have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IQDY or SCHD?

IQDY has higher volatility (7.34%) compared to SCHD (3.58%). In terms of maximum drawdown, IQDY dropped -39.60% vs SCHD's -33.37%.

Which ETF is better, IQDY or SCHD?

On 10-year performance, SCHD leads with 12.72% vs 12.19% for IQDY. 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, IQDY or SCHD?

Over the 10-year period, SCHD has performed better with a 12.72% return vs 12.19%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IQDY or SCHD?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.47% for IQDY.

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

SCHD has the higher dividend yield at 3.30%, compared with 2.98% for IQDY.

What is the main difference between IQDY and SCHD?

IQDY is categorized as Foreign Large Cap Equities, while SCHD is Dividend. IQDY tracks Northern Trust International Quality Dividend Dynamic Index, while SCHD tracks Dow Jones U.S. Dividend 100 Index. They also come from different issuers: Northern Trust and Charles Schwab. Their fees differ too: 0.47% for IQDY and 0.06% for SCHD.

Which has better risk-adjusted returns?

IQDY currently has the higher Sharpe Ratio (2.39 vs 2.23), 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.