The SPDR Dow Jones Industrial Average ETF Trust (DIA) and the Schwab International Equity ETF (SCHF) are both among the Top 100 ETFs. DIA is a SPDR State Street Global Advisors Large Value fund and SCHF is a Schwab ETFs Foreign Large Blend fund. So, what’s the difference between DIA and SCHF? And which fund is better?

The expense ratio of DIA is 0.10 percentage points higher than SCHF’s (0.16% vs. 0.06%). DIA also has a higher exposure to the financial services sector and a lower standard deviation. Overall, DIA has provided higher returns than SCHF over the past 10 years.

In this article, we’ll compare DIA vs. SCHF. We’ll look at risk metrics and fund composition, as well as at their annual returns and industry exposure. Moreover, I’ll also discuss DIA’s and SCHF’s holdings, portfolio growth, and performance and examine how these affect their overall returns.

Summary

DIASCHF
NameSPDR Dow Jones Industrial Average ETF TrustSchwab International Equity ETF
CategoryLarge ValueForeign Large Blend
IssuerSPDR State Street Global AdvisorsSchwab ETFs
AUM30.46B26.99B
Avg. Return13.35%6.43%
Div. Yield1.61%2.16%
Expense Ratio0.16%0.06%

The SPDR Dow Jones Industrial Average ETF Trust (DIA) is a Large Value fund that is issued by SPDR State Street Global Advisors. It currently has 30.46B total assets under management and has yielded an average annual return of 13.35% over the past 10 years. The fund has a dividend yield of 1.61% with an expense ratio of 0.16%.

The Schwab International Equity ETF (SCHF) is a Foreign Large Blend fund that is issued by Schwab ETFs. It currently has 26.99B total assets under management and has yielded an average annual return of 6.43% over the past 10 years. The fund has a dividend yield of 2.16% with an expense ratio of 0.06%.

DIA’s dividend yield is 0.55% lower than that of SCHF (1.61% vs. 2.16%). Also, DIA yielded on average 6.92% more per year over the past decade (13.35% vs. 6.43%). The expense ratio of DIA is 0.10 percentage points higher than SCHF’s (0.16% vs. 0.06%).

Fund Composition

Industry Exposure

DIA vs. SCHF - Industry Exposure

DIASCHF
Technology17.32%11.55%
Industrials16.7%14.86%
Energy2.0%4.23%
Communication Services4.42%5.65%
Utilities0.0%3.09%
Healthcare17.92%11.05%
Consumer Defensive6.3%9.41%
Real Estate0.0%3.17%
Financial Services20.68%17.85%
Consumer Cyclical13.44%10.87%
Basic Materials1.21%8.26%

The SPDR Dow Jones Industrial Average ETF Trust (DIA) has the most exposure to the Financial Services sector at 20.68%. This is followed by Healthcare and Technology at 17.92% and 17.32% respectively. Utilities (0.0%), Basic Materials (1.21%), and Energy (2.0%) only make up 3.21% of the fund’s total assets.

DIA’s mid-section with moderate exposure is comprised of Communication Services, Consumer Defensive, Consumer Cyclical, Industrials, and Technology stocks at 4.42%, 6.3%, 13.44%, 16.7%, and 17.32%.

The Schwab International Equity ETF (SCHF) has the most exposure to the Financial Services sector at 17.85%. This is followed by Industrials and Technology at 14.86% and 11.55% respectively. Real Estate (3.17%), Energy (4.23%), and Communication Services (5.65%) only make up 13.05% of the fund’s total assets.

SCHF’s mid-section with moderate exposure is comprised of Basic Materials, Consumer Defensive, Consumer Cyclical, Healthcare, and Technology stocks at 8.26%, 9.41%, 10.87%, 11.05%, and 11.55%.

DIA is 2.83% more exposed to the Financial Services sector than SCHF (20.68% vs 17.85%). DIA’s exposure to Healthcare and Technology stocks is 6.87% higher and 5.77% higher respectively (17.92% vs. 11.05% and 17.32% vs. 11.55%). In total, Utilities, Basic Materials, and Energy also make up 12.37% less of the fund’s holdings compared to SCHF (3.21% vs. 15.58%).

Holdings

DIA - Holdings

DIA HoldingsWeight
UnitedHealth Group Inc7.63%
Goldman Sachs Group Inc7.23%
The Home Depot Inc6.07%
Microsoft Corp5.16%
Salesforce.com Inc4.65%
Amgen Inc4.64%
Boeing Co4.56%
Visa Inc Class A4.45%
McDonald’s Corp4.4%
Honeywell International Inc4.18%

DIA’s Top Holdings are UnitedHealth Group Inc, Goldman Sachs Group Inc, The Home Depot Inc, Microsoft Corp, and Salesforce.com Inc at 7.63%, 7.23%, 6.07%, 5.16%, and 4.65%.

Amgen Inc (4.64%), Boeing Co (4.56%), and Visa Inc Class A (4.45%) have a slightly smaller but still significant weight. McDonald’s Corp and Honeywell International Inc are also represented in the DIA’s holdings at 4.4% and 4.18%.

SCHF - Holdings

SCHF HoldingsWeight
Nestle SA1.66%
Samsung Electronics Co Ltd1.6%
ASML Holding NV1.29%
Roche Holding AG1.24%
Toyota Motor Corp1.02%
LVMH Moet Hennessy Louis Vuitton SE0.93%
Novartis AG0.92%
Shopify Inc A0.78%
AstraZeneca PLC0.75%
SAP SE0.74%

SCHF’s Top Holdings are Nestle SA, Samsung Electronics Co Ltd, ASML Holding NV, Roche Holding AG, and Toyota Motor Corp at 1.66%, 1.6%, 1.29%, 1.24%, and 1.02%.

LVMH Moet Hennessy Louis Vuitton SE (0.93%), Novartis AG (0.92%), and Shopify Inc A (0.78%) have a slightly smaller but still significant weight. AstraZeneca PLC and SAP SE are also represented in the SCHF’s holdings at 0.75% and 0.74%.

Risk Analysis

DIASCHF
Mean Return1.130.58
R-squared93.3198.16
Std. Deviation13.6815.08
Alpha-0.940.53
Beta0.970.99
Sharpe Ratio0.940.42
Treynor Ratio13.075.39

The SPDR Dow Jones Industrial Average ETF Trust (DIA) has a Treynor Ratio of 13.07 with a Alpha of -0.94 and a R-squared of 93.31. Its Sharpe Ratio is 0.94 while DIA’s Mean Return is 1.13. Furthermore, the fund has a Standard Deviation of 13.68 and a Beta of 0.97.

The Schwab International Equity ETF (SCHF) has a Mean Return of 0.58 with a Standard Deviation of 15.08 and a Treynor Ratio of 5.39. Its Sharpe Ratio is 0.42 while SCHF’s R-squared is 98.16. Furthermore, the fund has a Beta of 0.99 and a Alpha of 0.53.

DIA’s Mean Return is 0.55 points higher than that of SCHF and its R-squared is 4.85 points lower. With a Standard Deviation of 13.68, DIA is slightly less volatile than SCHF. The Alpha and Beta of DIA are 1.47 points lower and 0.02 points lower than SCHF’s Alpha and Beta.

Performance

Annual Returns

DIA vs. SCHF - Annual Returns

YearDIASCHF
20209.63%9.86%
201925.09%22.15%
2018-3.6%-14.39%
201727.97%25.83%
201616.28%2.88%
20150.1%-2.44%
20149.88%-4.44%
201329.41%20.03%
201210.04%17.12%
20118.21%-12.32%
201013.87%8.6%

DIA had its best year in 2013 with an annual return of 29.41%. DIA’s worst year over the past decade yielded -3.6% and occurred in 2018. In most years the SPDR Dow Jones Industrial Average ETF Trust provided moderate returns such as in 2014, 2012, and 2010 where annual returns amounted to 9.88%, 10.04%, and 13.87% respectively.

The year 2017 was the strongest year for SCHF, returning 25.83% on an annual basis. The poorest year for SCHF in the last ten years was 2018, with a yield of -14.39%. Most years the Schwab International Equity ETF has given investors modest returns, such as in 2016, 2010, and 2020, when gains were 2.88%, 8.6%, and 9.86% respectively.

Portfolio Growth

DIA vs. SCHF - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
DIA$10,000$33,34113.35%
SCHF$10,000$17,0896.43%

A $10,000 investment in DIA would have resulted in a final balance of $33,341. This is a profit of $23,341 over 10 years and amounts to a compound annual growth rate (CAGR) of 13.35%.

With a $10,000 investment in SCHF, the end total would have been $17,089. This equates to a $7,089 profit over 10 years and a compound annual growth rate (CAGR) of 6.43%.

DIA’s CAGR is 6.92 percentage points higher than that of SCHF and as a result, would have yielded $16,252 more on a $10,000 investment. Thus, DIA outperformed SCHF by 6.92% annually.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *