REM vs. SCHD
Compare and contrast key facts about iShares Mortgage Real Estate ETF (REM) and Schwab US Dividend Equity ETF (SCHD).
REM and SCHD are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. REM is a passively managed fund by iShares that tracks the performance of the FTSE NAREIT All Mortgage Capped Index. It was launched on May 4, 2007. SCHD is a passively managed fund by Charles Schwab that tracks the performance of the Dow Jones U.S. Dividend 100 Index. It was launched on Oct 20, 2011. Both REM and SCHD are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: REM or SCHD.
Key characteristics
| REM | SCHD | |
|---|---|---|
| YTD Return | 1.21% | 17.07% |
| 1Y Return | 16.65% | 29.98% |
| 3Y Return (Ann) | -7.57% | 6.85% |
| 5Y Return (Ann) | -3.88% | 12.79% |
| 10Y Return (Ann) | 1.70% | 11.62% |
| Sharpe Ratio | 0.81 | 2.64 |
| Sortino Ratio | 1.20 | 3.81 |
| Omega Ratio | 1.15 | 1.47 |
| Calmar Ratio | 0.42 | 2.92 |
| Martin Ratio | 2.90 | 14.57 |
| Ulcer Index | 5.75% | 2.04% |
| Daily Std Dev | 20.65% | 11.26% |
| Max Drawdown | -74.72% | -33.37% |
| Current Drawdown | -29.81% | -0.86% |
Correlation
The correlation between REM and SCHD is 0.58, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
REM vs. SCHD - Performance Comparison
In the year-to-date period, REM achieves a 1.21% return, which is significantly lower than SCHD's 17.07% return. Over the past 10 years, REM has underperformed SCHD with an annualized return of 1.70%, while SCHD has yielded a comparatively higher 11.62% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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REM vs. SCHD - Expense Ratio Comparison
REM has a 0.48% expense ratio, which is higher than SCHD's 0.06% expense ratio.
Risk-Adjusted Performance
REM vs. SCHD - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Mortgage Real Estate ETF (REM) and Schwab US 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.
Dividends
REM vs. SCHD - Dividend Comparison
REM's dividend yield for the trailing twelve months is around 9.50%, more than SCHD's 3.38% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
REM iShares Mortgage Real Estate ETF | 9.50% | 9.46% | 11.13% | 7.29% | 7.72% | 8.16% | 10.00% | 9.97% | 10.03% | 11.99% | 14.53% | 16.12% |
SCHD Schwab US Dividend Equity ETF | 3.38% | 3.49% | 3.39% | 2.78% | 3.16% | 2.98% | 3.06% | 2.63% | 2.89% | 2.97% | 2.63% | 2.47% |
Drawdowns
REM vs. SCHD - Drawdown Comparison
The maximum REM drawdown since its inception was -74.72%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for REM and SCHD. For additional features, visit the drawdowns tool.
Volatility
REM vs. SCHD - Volatility Comparison
iShares Mortgage Real Estate ETF (REM) has a higher volatility of 4.87% compared to Schwab US Dividend Equity ETF (SCHD) at 3.51%. This indicates that REM'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.