DIA vs. SCHG: What’s The Difference?

The SPDR Dow Jones Industrial Average ETF Trust (DIA) and the Schwab U.S. Large-Cap Growth ETF (SCHG) are both among the Top 100 ETFs. DIA is a SPDR State Street Global Advisors Large Value fund and SCHG is a Schwab ETFs Large Growth fund. So, what’s the difference between DIA and SCHG? And which fund is better?

The expense ratio of DIA is 0.12 percentage points higher than SCHG’s (0.16% vs. 0.04%). DIA also has a higher exposure to the financial services sector and a lower standard deviation. Overall, DIA has provided lower returns than SCHG over the past ten years.

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

Summary

DIA SCHG
Name SPDR Dow Jones Industrial Average ETF Trust Schwab U.S. Large-Cap Growth ETF
Category Large Value Large Growth
Issuer SPDR State Street Global Advisors Schwab ETFs
AUM 30.46B 15.16B
Avg. Return 13.35% 17.81%
Div. Yield 1.61% 0.43%
Expense Ratio 0.16% 0.04%

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 U.S. Large-Cap Growth ETF (SCHG) is a Large Growth fund that is issued by Schwab ETFs. It currently has 15.16B total assets under management and has yielded an average annual return of 17.81% over the past 10 years. The fund has a dividend yield of 0.43% with an expense ratio of 0.04%.

DIA’s dividend yield is 1.18% higher than that of SCHG (1.61% vs. 0.43%). Also, DIA yielded on average 4.46% less per year over the past decade (13.35% vs. 17.81%). The expense ratio of DIA is 0.12 percentage points higher than SCHG’s (0.16% vs. 0.04%).

Fund Composition

Industry Exposure

DIA vs. SCHG - Industry Exposure

DIA SCHG
Technology 17.32% 39.21%
Industrials 16.7% 3.01%
Energy 2.0% 0.2%
Communication Services 4.42% 17.07%
Utilities 0.0% 0.0%
Healthcare 17.92% 12.05%
Consumer Defensive 6.3% 2.15%
Real Estate 0.0% 1.64%
Financial Services 20.68% 7.98%
Consumer Cyclical 13.44% 15.01%
Basic Materials 1.21% 1.68%

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 U.S. Large-Cap Growth ETF (SCHG) has the most exposure to the Technology sector at 39.21%. This is followed by Communication Services and Consumer Cyclical at 17.07% and 15.01% respectively. Energy (0.2%), Real Estate (1.64%), and Basic Materials (1.68%) only make up 3.52% of the fund’s total assets.

SCHG’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Financial Services, Healthcare, and Consumer Cyclical stocks at 2.15%, 3.01%, 7.98%, 12.05%, and 15.01%.

DIA is 12.70% more exposed to the Financial Services sector than SCHG (20.68% vs 7.98%). DIA’s exposure to Healthcare and Technology stocks is 5.87% higher and 21.89% lower respectively (17.92% vs. 12.05% and 17.32% vs. 39.21%). In total, Utilities, Basic Materials, and Energy also make up 1.33% more of the fund’s holdings compared to SCHG (3.21% vs. 1.88%).

Holdings

DIA - Holdings

DIA Holdings Weight
UnitedHealth Group Inc 7.63%
Goldman Sachs Group Inc 7.23%
The Home Depot Inc 6.07%
Microsoft Corp 5.16%
Salesforce.com Inc 4.65%
Amgen Inc 4.64%
Boeing Co 4.56%
Visa Inc Class A 4.45%
McDonald’s Corp 4.4%
Honeywell International Inc 4.18%

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%.

SCHG - Holdings

SCHG Holdings Weight
Apple Inc 11.49%
Microsoft Corp 10.91%
Amazon.com Inc 7.89%
Facebook Inc A 4.45%
Alphabet Inc A 3.93%
Alphabet Inc Class C 3.82%
Tesla Inc 2.8%
NVIDIA Corp 2.67%
Visa Inc Class A 2.12%
UnitedHealth Group Inc 2.02%

SCHG’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc A, and Alphabet Inc A at 11.49%, 10.91%, 7.89%, 4.45%, and 3.93%.

Alphabet Inc Class C (3.82%), Tesla Inc (2.8%), and NVIDIA Corp (2.67%) have a slightly smaller but still significant weight. Visa Inc Class A and UnitedHealth Group Inc are also represented in the SCHG’s holdings at 2.12% and 2.02%.

Risk Analysis

DIA SCHG
Mean Return 1.13 1.46
R-squared 93.31 92.92
Std. Deviation 13.68 14.78
Alpha -0.94 1.97
Beta 0.97 1.05
Sharpe Ratio 0.94 1.14
Treynor Ratio 13.07 16.3

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

The Schwab U.S. Large-Cap Growth ETF (SCHG) has a Standard Deviation of 14.78 with a R-squared of 92.92 and a Sharpe Ratio of 1.14. Its Beta is 1.05 while SCHG’s Treynor Ratio is 16.3. Furthermore, the fund has a Mean Return of 1.46 and a Alpha of 1.97.

DIA’s Mean Return is 0.33 points lower than that of SCHG and its R-squared is 0.39 points higher. With a Standard Deviation of 13.68, DIA is slightly less volatile than SCHG. The Alpha and Beta of DIA are 2.91 points lower and 0.08 points lower than SCHG’s Alpha and Beta.

Performance

Annual Returns

DIA vs. SCHG - Annual Returns

Year DIA SCHG
2020 9.63% 39.13%
2019 25.09% 36.21%
2018 -3.6% -1.35%
2017 27.97% 28.04%
2016 16.28% 6.76%
2015 0.1% 3.26%
2014 9.88% 15.74%
2013 29.41% 33.96%
2012 10.04% 17.02%
2011 8.21% -0.67%
2010 13.87% 16.83%

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 2020 was the strongest year for SCHG, returning 39.13% on an annual basis. The poorest year for SCHG in the last ten years was 2018, with a yield of -1.35%. Most years the Schwab U.S. Large-Cap Growth ETF has given investors modest returns, such as in 2014, 2010, and 2012, when gains were 15.74%, 16.83%, and 17.02% respectively.

Portfolio Growth

DIA vs. SCHG - Portfolio Growth

Fund Initial Balance Final Balance CAGR
DIA $10,000 $33,341 13.35%
SCHG $10,000 $47,556 17.81%

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 SCHG, the end total would have been $47,556. This equates to a $37,556 profit over 10 years and a compound annual growth rate (CAGR) of 17.81%.

DIA’s CAGR is 4.46 percentage points lower than that of SCHG and as a result, would have yielded $14,215 less on a $10,000 investment. Thus, DIA performed worse than SCHG by 4.46% annually.


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