DFAR vs SCHD
Dimensional US Real Estate ETF vs Schwab US Dividend Equity ETF
Which is better, DFAR or SCHD?
Large Cap Blend against Large Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y and the full window. SCHD is less concentrated, with 41.6% of the fund in its ten largest positions against 50.2%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | DFAR | SCHD |
|---|---|---|
| Expense Ratio | 0.19% | 0.06%Best |
| AUM | $8.2B | $111.6B |
| Dividend Yield | 3.59% | 3.24% |
| Holdings | 242 | 206 |
| YTD Return | +7.13% | +24.55%Best |
| 1Y Return | +6.57% | +29.85%Best |
| 3Y Return (annualized) | +10.06% | +16.64%Best |
| 5Y Return (annualized) | - | +9.54% |
| Volatility (annualized) | 18.3% | 15.1%Best |
| Max Drawdown | -32.3% | -16.1%Best |
| $10,000 over 4.6 years | $10,880 | $15,902Best |
| Top 10 Weight | 50.2% | 41.6%Best |
| Fund Family | Dimensional | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Feb 23, 2022 | Oct 20, 2011 |
Volatility and max drawdown, and the $10,000 over 4.6 years row, are measured over the window both funds cover: Feb 24, 2022 to Oct 14, 2026 (4.6 years).
DFAR vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 4.6 years both funds cover.
DFAR vs SCHD Performance
Dimensional US Real Estate ETF (DFAR) is an ETF from Dimensional and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year DFAR returned +6.57% while SCHD returned +29.85%. Year to date, DFAR is up 7.13% versus a gain of 24.55% for SCHD.
Over three years, DFAR compounded at +10.06% per year against +16.64% for SCHD.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFAR has been the more volatile fund, with annualized monthly volatility of 18.3% compared with 15.1% for SCHD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -32.3% for DFAR and -16.1% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFAR charges 0.19% per year while SCHD charges 0.06%. On a $10,000 position that is $19 vs $6 annually, a gap of $13 per year that compounds over a long holding period. On income, DFAR currently yields 3.59% against 3.24% for SCHD.
Holdings Overlap
We hold position weights for 120 holdings in DFAR and 98 in SCHD, totalling 99.7% and 99.8% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 120 positions we hold weights for in DFAR and 98 in SCHD, against full books of 242 and 206.
What only one of them owns
Our book lists 97 positions for SCHD that do not appear in our book for DFAR (99.8% of the fund), and 117 for DFAR that do not appear in SCHD (99.7%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of DFAR and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, DFAR or SCHD?
DFAR has an expense ratio of 0.19% while SCHD charges 0.06%. SCHD is the cheaper option, by $13 a year on a $10,000 investment.
Which performed better, DFAR or SCHD?
Over the past year DFAR returned +6.57% vs +29.85% for SCHD, so SCHD leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFAR or SCHD?
DFAR has been the more volatile fund at 18.3% annualized versus 15.1% for SCHD. Worst drawdown: DFAR -32.3% vs SCHD -16.1%.
Should I hold both DFAR and SCHD?
DFAR and SCHD have a monthly-return correlation of 0.77, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, DFAR or SCHD?
DFAR yields 3.59% while SCHD yields 3.24%, so DFAR currently pays the higher dividend yield.
Is SCHD better than DFAR?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y and the full window. SCHD is less concentrated, with 41.6% of the fund in its ten largest positions against 50.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.