SCHD vs. ITWO

Last updated Jul 21, 2026

SCHD (Schwab U.S. Dividend Equity ETF) and ITWO (Proshares Russell 2000 High Income ETF) are both exchange-traded funds - SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index, while ITWO is a Derivative Income fund tracking the Cboe Russell 2000 Daily Covered Call Index. Both are passively managed. Over the past year, SCHD returned 25.66% vs 31.91% for ITWO. A 0.56 correlation means they provide meaningful diversification when combined. SCHD charges 0.06%/yr vs 0.55%/yr for ITWO.

Performance

SCHD vs. ITWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab U.S. Dividend Equity ETF (SCHD) and Proshares Russell 2000 High Income ETF (ITWO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with SCHD having a 21.36% return and ITWO slightly lower at 20.44%.

SCHD

• 1D: -0.49%
• 1M: 3.61%
• 6M: 15.19%
• YTD: 21.36%
• 1Y: 25.66%
• 3Y*: 13.54%
• 5Y*: 9.15%
• 10Y*: 12.32%
• ALL TIME*: 13.25%

ITWO

• 1D: -0.63%
• 1M: -0.78%
• 6M: 11.95%
• YTD: 20.44%
• 1Y: 31.91%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 20.57%

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

SCHD vs. ITWO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
SCHD Schwab U.S. Dividend Equity ETF	21.36%	4.34%	-0.04%
ITWO Proshares Russell 2000 High Income ETF	20.44%	14.25%	3.10%

Correlation

The correlation between SCHD and ITWO is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.44
Correlation (All Time) Calculated using the full available price history since Sep 5, 2024	0.56

The correlation between SCHD and ITWO shifts across timeframes, from 0.44 (1 year) to 0.56 (all time), reflecting how their relationship changes across market environments.

Return for Risk

SCHD vs. ITWO — 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: 90
SCHD Sortino Ratio Rank: 93
SCHD Omega Ratio Rank: 88
SCHD Calmar Ratio Rank: 95
SCHD Martin Ratio Rank: 87

ITWO

ITWO Risk / Return Rank: 73
ITWO Sharpe Ratio Rank: 71
ITWO Sortino Ratio Rank: 69
ITWO Omega Ratio Rank: 62
ITWO Calmar Ratio Rank: 83
ITWO Martin Ratio Rank: 79

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. ITWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Dividend Equity ETF (SCHD) and Proshares Russell 2000 High Income ETF (ITWO). 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	ITWO	Difference
Sharpe ratio: Return per unit of total volatility	2.34	1.70	+0.63
Sortino ratio: Return per unit of downside risk	3.63	2.37	+1.26
Omega ratio: Gain probability vs. loss probability	1.42	1.28	+0.13
Calmar ratio: Return relative to maximum drawdown	5.59	3.27	+2.31
Martin ratio: Return relative to average drawdown	13.64	10.94	+2.70

SCHD vs. ITWO - Sharpe Ratio Comparison

The current SCHD Sharpe Ratio is 2.34, which is higher than the ITWO Sharpe Ratio of 1.70. The chart below compares the historical Sharpe Ratios of SCHD and ITWO, 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. ITWO - Drawdown Comparison

The maximum SCHD drawdown since its inception was -33.37%, which is greater than ITWO's maximum drawdown of -24.77%. Use the drawdown chart below to compare losses from any high point for SCHD and ITWO.

Drawdown Indicators

	SCHD	ITWO	Difference
Max Drawdown Largest peak-to-trough decline	-33.37%	-24.77%	-8.60%
Max Drawdown (1Y) Largest decline over 1 year	-4.61%	-9.79%	+5.18%
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 Drawdown Current decline from peak	-0.88%	-2.51%	+1.63%
Average Drawdown Average peak-to-trough decline	-3.30%	-4.88%	+1.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.89%	2.92%	-1.03%

Volatility

SCHD vs. ITWO - Volatility Comparison

Schwab U.S. Dividend Equity ETF (SCHD) and Proshares Russell 2000 High Income ETF (ITWO) have volatilities of 3.63% and 3.64%, 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

	SCHD	ITWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.63%	3.64%	-0.01%
Volatility (6M) Calculated over the trailing 6-month period	7.97%	13.85%	-5.88%
Volatility (1Y) Calculated over the trailing 1-year period	11.05%	18.88%	-7.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.37%	20.33%	-5.96%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.71%	20.33%	-3.62%

SCHD vs. ITWO - Expense Ratio Comparison

SCHD has a 0.06% expense ratio, which is lower than ITWO's 0.55% expense ratio.

Dividends

SCHD vs. ITWO - Dividend Comparison

SCHD's dividend yield for the trailing twelve months is around 3.20%, less than ITWO's 7.32% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ITWO Proshares Russell 2000 High Income ETF	7.32%	12.12%	4.11%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SCHD Schwab U.S. Dividend Equity ETF	3.20%	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 ITWO in my portfolio?

SCHD and ITWO have a correlation of 0.44, 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 ITWO?

ITWO has higher volatility (3.64%) compared to SCHD (3.63%). In terms of maximum drawdown, SCHD dropped -33.37% vs ITWO's -24.77%.

Which ETF is better, SCHD or ITWO?

On 1-year performance, ITWO leads with 31.91% vs 25.66% for SCHD. On fees, SCHD is cheaper at 0.06% per year. 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, SCHD or ITWO?

Over the 1-year period, ITWO has performed better with a 31.91% return vs 25.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHD or ITWO?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.55% for ITWO.

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

ITWO has the higher dividend yield at 7.32%, compared with 3.20% for SCHD.

What is the main difference between SCHD and ITWO?

SCHD is categorized as Dividend, while ITWO is Derivative Income. SCHD tracks Dow Jones U.S. Dividend 100 Index, while ITWO tracks Cboe Russell 2000 Daily Covered Call Index. They also come from different issuers: Charles Schwab and ProShares. Their fees differ too: 0.06% for SCHD and 0.55% for ITWO.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.34 vs 1.70), 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.