SCHD vs. IWMY

Last updated Jun 13, 2026

SCHD (Schwab U.S. Dividend Equity ETF) and IWMY (Defiance R2000 Enhanced Options & 0DTE Income ETF) are both exchange-traded funds - SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index, while IWMY is a Options Trading fund tracking the Russell 2000 Index. Both are passively managed. Over the past year, SCHD returned 26.16% vs 21.26% for IWMY. A 0.60 correlation means they provide meaningful diversification when combined. SCHD charges 0.06%/yr vs 0.99%/yr for IWMY.

Performance

SCHD vs. IWMY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab U.S. Dividend Equity ETF (SCHD) and Defiance R2000 Enhanced Options & 0DTE Income ETF (IWMY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCHD achieves a 20.66% return, which is significantly higher than IWMY's 13.70% return.

SCHD

• 1D: 0.89%
• 1M: 3.37%
• YTD: 20.66%
• 6M: 19.57%
• 1Y: 26.16%
• 3Y*: 14.90%
• 5Y*: 8.75%
• 10Y*: 12.91%

IWMY

• 1D: 0.68%
• 1M: 2.79%
• YTD: 13.70%
• 6M: 10.66%
• 1Y: 21.26%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SCHD vs. IWMY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
SCHD Schwab U.S. Dividend Equity ETF	20.66%	4.34%	11.66%	13.62%
IWMY Defiance R2000 Enhanced Options & 0DTE Income ETF	13.70%	10.18%	5.56%	10.06%

Correlation

The correlation between SCHD and IWMY is 0.50, 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	0.50
Correlation (All Time) Calculated using the full available price history since Oct 31, 2023	0.60

The correlation between SCHD and IWMY has been stable across timeframes, ranging from 0.50 to 0.60 - a consistent structural relationship.

Return for Risk

SCHD vs. IWMY — Risk / Return Rank

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

SCHD

SCHD Risk / Return Rank: 87
SCHD Sharpe Ratio Rank: 86
SCHD Sortino Ratio Rank: 90
SCHD Omega Ratio Rank: 83
SCHD Calmar Ratio Rank: 93
SCHD Martin Ratio Rank: 81

IWMY

IWMY Risk / Return Rank: 41
IWMY Sharpe Ratio Rank: 42
IWMY Sortino Ratio Rank: 39
IWMY Omega Ratio Rank: 38
IWMY Calmar Ratio Rank: 42
IWMY Martin Ratio Rank: 42

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. IWMY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Dividend Equity ETF (SCHD) and Defiance R2000 Enhanced Options & 0DTE Income ETF (IWMY). 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	IWMY	Difference
Sharpe ratio: Return per unit of total volatility	2.41	1.31	+1.10
Sortino ratio: Return per unit of downside risk	3.72	1.79	+1.93
Omega ratio: Gain probability vs. loss probability	1.43	1.23	+0.20
Calmar ratio: Return relative to maximum drawdown	5.70	1.85	+3.85
Martin ratio: Return relative to average drawdown	13.97	6.03	+7.94

SCHD vs. IWMY - Sharpe Ratio Comparison

The current SCHD Sharpe Ratio is 2.41, which is higher than the IWMY Sharpe Ratio of 1.31. The chart below compares the historical Sharpe Ratios of SCHD and IWMY, 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. IWMY - Drawdown Comparison

The maximum SCHD drawdown since its inception was -33.37%, which is greater than IWMY's maximum drawdown of -18.72%. Use the drawdown chart below to compare losses from any high point for SCHD and IWMY.

Drawdown Indicators

	SCHD	IWMY	Difference
Max Drawdown Largest peak-to-trough decline	-33.37%	-18.72%	-14.65%
Max Drawdown (1Y) Largest decline over 1 year	-4.61%	-11.57%	+6.96%
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	-0.03%	-0.12%	+0.09%
Average Drawdown Average peak-to-trough decline	-3.31%	-2.96%	-0.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.89%	3.54%	-1.65%

Volatility

SCHD vs. IWMY - Volatility Comparison

The current volatility for Schwab U.S. Dividend Equity ETF (SCHD) is 3.05%, while Defiance R2000 Enhanced Options & 0DTE Income ETF (IWMY) has a volatility of 6.80%. This indicates that SCHD experiences smaller price fluctuations and is considered to be less risky than IWMY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHD	IWMY	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.05%	6.80%	-3.75%
Volatility (6M) Calculated over the trailing 6-month period	7.53%	13.47%	-5.94%
Volatility (1Y) Calculated over the trailing 1-year period	10.93%	16.36%	-5.43%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.38%	15.94%	-1.56%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.72%	15.94%	+0.78%

SCHD vs. IWMY - Expense Ratio Comparison

SCHD has a 0.06% expense ratio, which is lower than IWMY's 0.99% expense ratio.

Dividends

SCHD vs. IWMY - Dividend Comparison

SCHD's dividend yield for the trailing twelve months is around 3.22%, less than IWMY's 44.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IWMY Defiance R2000 Enhanced Options & 0DTE Income ETF	44.61%	63.33%	107.92%	11.34%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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 SCHD and IWMY in my portfolio?

SCHD and IWMY have a correlation of 0.50, 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 IWMY?

IWMY has higher volatility (6.80%) compared to SCHD (3.05%). In terms of maximum drawdown, SCHD dropped -33.37% vs IWMY's -18.72%.

Which ETF is better, SCHD or IWMY?

On 1-year performance, SCHD leads with 26.16% vs 21.26% for IWMY. On fees, SCHD is cheaper at 0.06% per year. On volatility, SCHD has been the lower-risk option at 3.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHD or IWMY?

Over the 1-year period, SCHD has performed better with a 26.16% return vs 21.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHD or IWMY?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.99% for IWMY.

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

IWMY has the higher dividend yield at 44.61%, compared with 3.22% for SCHD.

What is the main difference between SCHD and IWMY?

SCHD is categorized as Dividend, while IWMY is Options Trading. SCHD tracks Dow Jones U.S. Dividend 100 Index, while IWMY tracks Russell 2000 Index. They also come from different issuers: Charles Schwab and Defiance. Their fees differ too: 0.06% for SCHD and 0.99% for IWMY.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.41 vs 1.31), 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.