SCHD vs. DES

Last updated Jul 17, 2026

SCHD (Schwab U.S. Dividend Equity ETF) and DES (WisdomTree U.S. SmallCap Dividend Fund) are both exchange-traded funds - SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index, while DES is a Small Cap Blend Equities fund tracking the WisdomTree SmallCap Dividend (TR). Both are passively managed. Over the past 10 years, SCHD returned 12.49%/yr vs 8.23%/yr for DES. Their correlation of 0.81 suggests significant overlap in exposure. SCHD charges 0.06%/yr vs 0.38%/yr for DES.

Performance

SCHD vs. DES - Performance Comparison

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

Returns By Period

In the year-to-date period, SCHD achieves a 22.44% return, which is significantly lower than DES's 24.63% return. Over the past 10 years, SCHD has outperformed DES with an annualized return of 12.49%, while DES has yielded a comparatively lower 8.23% annualized return.

SCHD

• 1D: 2.16%
• 1M: 2.38%
• 6M: 15.69%
• YTD: 22.44%
• 1Y: 27.19%
• 3Y*: 14.79%
• 5Y*: 9.45%
• 10Y*: 12.49%

DES

• 1D: 1.85%
• 1M: 4.99%
• 6M: 16.48%
• YTD: 24.63%
• 1Y: 30.86%
• 3Y*: 15.04%
• 5Y*: 9.02%
• 10Y*: 8.23%

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

SCHD vs. DES - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHD Schwab U.S. Dividend Equity ETF	22.44%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	20.85%
DES WisdomTree U.S. SmallCap Dividend Fund	24.63%	0.25%	9.93%	16.50%	-10.96%	26.51%	-4.26%	20.26%	-12.85%	8.64%

Correlation

The correlation between SCHD and DES is 0.67, 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	0.67
Correlation (3Y) Calculated over the trailing 3-year period	0.77
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 SCHD and DES shifts across timeframes, from 0.67 (1 year) to 0.82 (5 years), reflecting how their relationship changes across market environments.

SCHD vs. DES - Sectors Allocation Comparison

Sectors	SCHD	DES
Technology	19.4%	6.0%
Consumer Defensive	18.5%	4.1%
Healthcare	18.4%	2.0%
Energy	14.6%	10.2%
Financial Services	9.1%	24.8%
Industrials	7.4%	13.4%
Consumer Cyclical	6.7%	16.0%
Communication Services	6.0%	2.8%
Basic Materials	1.2%	6.3%
Utilities	0.0%	4.2%
Real Estate	-	10.1%

Return for Risk

SCHD vs. DES — Risk / Return Rank

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

SCHD

SCHD Risk / Return Rank: 91
SCHD Sharpe Ratio Rank: 91
SCHD Sortino Ratio Rank: 93
SCHD Omega Ratio Rank: 88
SCHD Calmar Ratio Rank: 95
SCHD Martin Ratio Rank: 87

DES

DES Risk / Return Rank: 79
DES Sharpe Ratio Rank: 76
DES Sortino Ratio Rank: 81
DES Omega Ratio Rank: 73
DES Calmar Ratio Rank: 88
DES Martin Ratio Rank: 78

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.

SCHD vs. DES - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Dividend Equity ETF (SCHD) and WisdomTree U.S. SmallCap Dividend Fund (DES). 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.

	SCHD	DES	Difference
Sharpe ratio: Return per unit of total volatility	2.47	1.94	+0.54
Sortino ratio: Return per unit of downside risk	3.83	2.90	+0.93
Omega ratio: Gain probability vs. loss probability	1.44	1.34	+0.10
Calmar ratio: Return relative to maximum drawdown	5.92	4.06	+1.86
Martin ratio: Return relative to average drawdown	14.46	11.65	+2.81

SCHD vs. DES - Sharpe Ratio Comparison

The current SCHD Sharpe Ratio is 2.47, which is comparable to the DES Sharpe Ratio of 1.94. The chart below compares the historical Sharpe Ratios of SCHD and DES, 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

SCHD vs. DES - Drawdown Comparison

The maximum SCHD drawdown since its inception was -33.37%, smaller than the maximum DES drawdown of -65.48%. Use the drawdown chart below to compare losses from any high point for SCHD and DES.

Drawdown Indicators

	SCHD	DES	Difference
Max Drawdown Largest peak-to-trough decline	-33.37%	-65.48%	+32.11%
Max Drawdown (1Y) Largest decline over 1 year	-4.61%	-7.64%	+3.03%
Max Drawdown (3Y) Largest decline over 3 years	-16.13%	-25.16%	+9.03%
Max Drawdown (5Y) Largest decline over 5 years	-16.85%	-25.16%	+8.31%
Max Drawdown (10Y) Largest decline over 10 years	-33.37%	-45.65%	+12.28%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-3.30%	-9.63%	+6.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.89%	2.66%	-0.77%

Volatility

SCHD vs. DES - Volatility Comparison

Schwab U.S. Dividend Equity ETF (SCHD) has a higher volatility of 4.10% compared to WisdomTree U.S. SmallCap Dividend Fund (DES) at 3.69%. This indicates that SCHD's price experiences larger fluctuations and is considered to be riskier than DES based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHD	DES	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.10%	3.69%	+0.41%
Volatility (6M) Calculated over the trailing 6-month period	8.05%	11.05%	-3.00%
Volatility (1Y) Calculated over the trailing 1-year period	11.04%	16.02%	-4.98%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.40%	19.46%	-5.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.71%	21.91%	-5.20%

SCHD vs. DES - Expense Ratio Comparison

SCHD has a 0.06% expense ratio, which is lower than DES's 0.38% expense ratio.

Dividends

SCHD vs. DES - Dividend Comparison

SCHD's dividend yield for the trailing twelve months is around 3.17%, more than DES's 2.22% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DES WisdomTree U.S. SmallCap Dividend Fund	2.22%	2.85%	2.81%	2.65%	2.89%	2.31%	2.75%	2.68%	3.65%	2.89%	2.70%	3.09%
SCHD Schwab U.S. Dividend Equity ETF	3.17%	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 SCHD and DES in my portfolio?

SCHD and DES have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCHD or DES?

SCHD has higher volatility (4.10%) compared to DES (3.69%). In terms of maximum drawdown, SCHD dropped -33.37% vs DES's -65.48%.

Which ETF is better, SCHD or DES?

On 10-year performance, SCHD leads with 12.49% vs 8.23% for DES. On fees, SCHD is cheaper at 0.06% per year. On volatility, DES has been the lower-risk option at 3.69%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHD or DES?

Over the 10-year period, SCHD has performed better with a 12.49% return vs 8.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHD or DES?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.38% for DES.

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

SCHD has the higher dividend yield at 3.17%, compared with 2.22% for DES.

What is the main difference between SCHD and DES?

SCHD is categorized as Dividend, while DES is Small Cap Blend Equities. SCHD tracks Dow Jones U.S. Dividend 100 Index, while DES tracks WisdomTree SmallCap Dividend (TR). They also come from different issuers: Charles Schwab and WisdomTree. Their fees differ too: 0.06% for SCHD and 0.38% for DES.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.47 vs 1.94), 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.