ITDD vs. SCHD
ITDD (Ishares Lifepath Target Date 2040 ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - ITDD is a Target Retirement Date fund actively managed by iShares, while SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. ITDD is actively managed, while SCHD is passively managed. Over the past year, ITDD returned 20.04% vs 24.56% for SCHD. A 0.58 correlation means they provide meaningful diversification when combined. ITDD charges 0.11%/yr vs 0.06%/yr for SCHD.
Performance
ITDD vs. SCHD - Performance Comparison
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Returns By Period
In the year-to-date period, ITDD achieves a 8.11% return, which is significantly lower than SCHD's 17.72% return.
ITDD
- 1D
- -1.22%
- 1M
- 0.09%
- YTD
- 8.11%
- 6M
- 7.50%
- 1Y
- 20.04%
- 3Y*
- —
- 5Y*
- —
- 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%
ITDD vs. SCHD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
ITDD Ishares Lifepath Target Date 2040 ETF | 8.11% | 17.66% | 13.08% | 12.87% |
SCHD Schwab U.S. Dividend Equity ETF | 17.72% | 4.34% | 11.66% | 8.91% |
Correlation
The correlation between ITDD and SCHD is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.42 |
Correlation (All Time) Calculated using the full available price history since Oct 19, 2023 | 0.58 |
The correlation between ITDD and SCHD shifts across timeframes, from 0.42 (1 year) to 0.58 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
ITDD vs. SCHD — Risk / Return Rank
ITDD
SCHD
ITDD vs. SCHD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Ishares Lifepath Target Date 2040 ETF (ITDD) 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.
| ITDD | SCHD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.27 | ||
| Sortino ratioReturn per unit of downside risk | -0.66 | ||
| Omega ratioGain probability vs. loss probability | 1.36 | 1.40 | -0.04 |
| Calmar ratioReturn relative to maximum drawdown | 2.66 | 5.35 | -2.69 |
| Martin ratioReturn relative to average drawdown | 11.44 | 12.94 | -1.50 |
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Drawdowns
ITDD vs. SCHD - Drawdown Comparison
The maximum ITDD drawdown since its inception was -12.46%, smaller than the maximum SCHD drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for ITDD and SCHD.
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Drawdown Indicators
| ITDD | SCHD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -12.46% | -33.37% | +20.91% |
Max Drawdown (1Y)Largest decline over 1 year | -7.56% | -4.61% | -2.95% |
Max Drawdown (3Y)Largest decline over 3 years | — | -16.13% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -16.85% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -33.37% | — |
Current DrawdownCurrent decline from peak | -1.59% | -2.47% | +0.88% |
Average DrawdownAverage peak-to-trough decline | -1.25% | -3.31% | +2.06% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.76% | 1.90% | -0.14% |
Volatility
ITDD vs. SCHD - Volatility Comparison
Ishares Lifepath Target Date 2040 ETF (ITDD) has a higher volatility of 4.07% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 3.58%. This indicates that ITDD'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.
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Volatility by Period
| ITDD | SCHD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.07% | 3.58% | +0.49% |
Volatility (6M)Calculated over the trailing 6-month period | 8.62% | 7.73% | +0.89% |
Volatility (1Y)Calculated over the trailing 1-year period | 10.31% | 11.07% | -0.76% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 11.56% | 14.36% | -2.80% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.56% | 16.71% | -5.15% |
ITDD vs. SCHD - Expense Ratio Comparison
ITDD has a 0.11% 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
ITDD vs. SCHD - Dividend Comparison
ITDD's dividend yield for the trailing twelve months is around 1.69%, less than SCHD's 3.30% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ITDD Ishares Lifepath Target Date 2040 ETF | 1.69% | 1.82% | 1.56% | 0.89% | 0.00% | 0.00% | 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
ITDD and SCHD have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ITDD has higher volatility (4.07%) compared to SCHD (3.58%). In terms of maximum drawdown, ITDD dropped -12.46% vs SCHD's -33.37%.
On 1-year performance, SCHD leads with 24.56% vs 20.04% for ITDD. 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.
Over the 1-year period, SCHD has performed better with a 24.56% return vs 20.04%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SCHD is cheaper with a 0.06% expense ratio, compared with 0.11% for ITDD.
SCHD has the higher dividend yield at 3.30%, compared with 1.69% for ITDD.
ITDD is categorized as Target Retirement Date, while SCHD is Dividend. They also come from different issuers: iShares and Charles Schwab. Their fees differ too: 0.11% for ITDD and 0.06% for SCHD.
SCHD currently has the higher Sharpe Ratio (2.23 vs 1.96), 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.
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