ISCV vs. SCHD

Last updated Jul 14, 2026

ISCV (iShares Morningstar Small Cap Value ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - ISCV is a Small Cap Value Equities fund tracking the Morningstar US Small Cap Broad Value Extended 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, ISCV returned 8.81%/yr vs 12.34%/yr for SCHD. Their correlation of 0.81 suggests significant overlap in exposure. Both charge a 0.06% expense ratio.

Performance

ISCV vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Morningstar Small Cap Value ETF (ISCV) 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, ISCV achieves a 15.28% return, which is significantly lower than SCHD's 20.66% return. Over the past 10 years, ISCV has underperformed SCHD with an annualized return of 8.81%, while SCHD has yielded a comparatively higher 12.34% annualized return.

ISCV

• 1D: -0.02%
• 1M: 1.80%
• 6M: 10.42%
• YTD: 15.28%
• 1Y: 24.92%
• 3Y*: 14.68%
• 5Y*: 9.02%
• 10Y*: 8.81%

SCHD

• 1D: 0.49%
• 1M: -0.00%
• 6M: 16.13%
• YTD: 20.66%
• 1Y: 23.51%
• 3Y*: 14.13%
• 5Y*: 9.00%
• 10Y*: 12.34%

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

ISCV vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ISCV iShares Morningstar Small Cap Value ETF	15.28%	10.38%	9.31%	16.55%	-10.58%	29.15%	0.86%	19.51%	-17.39%	8.59%
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 ISCV and SCHD is 0.69, 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	0.69
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	0.80
Correlation (All Time) Calculated using the full available price history since Oct 20, 2011	0.81

The correlation between ISCV and SCHD shifts across timeframes, from 0.69 (1 year) to 0.82 (5 years), reflecting how their relationship changes across market environments.

ISCV vs. SCHD - Sectors Allocation Comparison

Sectors	ISCV	SCHD
Financial Services	22.5%	9.1%
Consumer Cyclical	14.9%	6.7%
Industrials	11.6%	7.4%
Real Estate	11.1%	-
Healthcare	10.4%	18.4%
Technology	8.5%	19.4%
Energy	5.4%	14.6%
Consumer Defensive	4.6%	18.5%
Basic Materials	4.1%	1.2%
Utilities	4.0%	0.0%
Communication Services	2.2%	6.0%

Return for Risk

ISCV vs. SCHD — Risk / Return Rank

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

ISCV

ISCV Risk / Return Rank: 63
ISCV Sharpe Ratio Rank: 59
ISCV Sortino Ratio Rank: 64
ISCV Omega Ratio Rank: 56
ISCV Calmar Ratio Rank: 68
ISCV Martin Ratio Rank: 66

SCHD

SCHD Risk / Return Rank: 86
SCHD Sharpe Ratio Rank: 85
SCHD Sortino Ratio Rank: 90
SCHD Omega Ratio Rank: 82
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.

ISCV vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Morningstar Small Cap Value ETF (ISCV) 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.

	ISCV	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	1.57	2.17	-0.60
Sortino ratio: Return per unit of downside risk	2.36	3.32	-0.96
Omega ratio: Gain probability vs. loss probability	1.28	1.38	-0.11
Calmar ratio: Return relative to maximum drawdown	2.71	5.12	-2.41
Martin ratio: Return relative to average drawdown	9.48	12.47	-2.99

ISCV vs. SCHD - Sharpe Ratio Comparison

The current ISCV Sharpe Ratio is 1.57, which is comparable to the SCHD Sharpe Ratio of 2.17. The chart below compares the historical Sharpe Ratios of ISCV 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

ISCV vs. SCHD - Drawdown Comparison

The maximum ISCV drawdown since its inception was -63.14%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for ISCV and SCHD.

Drawdown Indicators

	ISCV	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-63.14%	-33.37%	-29.77%
Max Drawdown (1Y) Largest decline over 1 year	-9.25%	-4.61%	-4.64%
Max Drawdown (3Y) Largest decline over 3 years	-25.35%	-16.13%	-9.22%
Max Drawdown (5Y) Largest decline over 5 years	-25.35%	-16.85%	-8.50%
Max Drawdown (10Y) Largest decline over 10 years	-51.56%	-33.37%	-18.19%
Current Drawdown Current decline from peak	-0.60%	-0.03%	-0.57%
Average Drawdown Average peak-to-trough decline	-9.10%	-3.31%	-5.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.64%	1.89%	+0.75%

Volatility

ISCV vs. SCHD - Volatility Comparison

iShares Morningstar Small Cap Value ETF (ISCV) and Schwab U.S. Dividend Equity ETF (SCHD) have volatilities of 3.60% and 3.54%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ISCV	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.60%	3.54%	+0.06%
Volatility (6M) Calculated over the trailing 6-month period	10.44%	7.70%	+2.74%
Volatility (1Y) Calculated over the trailing 1-year period	15.99%	10.93%	+5.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.70%	14.36%	+6.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.20%	16.70%	+6.50%

ISCV vs. SCHD - Expense Ratio Comparison

Both ISCV 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

ISCV vs. SCHD - Dividend Comparison

ISCV's dividend yield for the trailing twelve months is around 1.85%, less than SCHD's 3.22% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ISCV iShares Morningstar Small Cap Value ETF	1.85%	2.04%	2.01%	2.21%	2.12%	1.95%	2.01%	2.36%	2.48%	1.74%	2.49%	2.60%
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 ISCV and SCHD in my portfolio?

ISCV and SCHD have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ISCV or SCHD?

ISCV has higher volatility (3.60%) compared to SCHD (3.54%). In terms of maximum drawdown, ISCV dropped -63.14% vs SCHD's -33.37%.

Which ETF is better, ISCV or SCHD?

On 10-year performance, SCHD leads with 12.34% vs 8.81% for ISCV. Both ETFs have the same 0.06% expense ratio. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ISCV or SCHD?

Over the 10-year period, SCHD has performed better with a 12.34% return vs 8.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ISCV or SCHD?

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

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

SCHD has the higher dividend yield at 3.22%, compared with 1.85% for ISCV.

What is the main difference between ISCV and SCHD?

ISCV is categorized as Small Cap Value Equities, while SCHD is Dividend. ISCV tracks Morningstar US Small Cap Broad Value Extended 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 (2.17 vs 1.57), 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.