The iShares Russell 1000 Value ETF (IWD) and the Schwab International Equity ETF (SCHF) are both among the Top 100 ETFs. IWD is a iShares Large Value fund and SCHF is a Schwab ETFs Foreign Large Blend fund. So, what’s the difference between IWD and SCHF? And which fund is better?
The expense ratio of IWD is 0.13 percentage points higher than SCHF’s (0.19% vs. 0.06%). IWD also has a higher exposure to the financial services sector and a lower standard deviation. Overall, IWD has provided higher returns than SCHF over the past ten years.
In this article, we’ll compare IWD vs. SCHF. We’ll look at industry exposure and risk metrics, as well as at their performance and holdings. Moreover, I’ll also discuss IWD’s and SCHF’s annual returns, fund composition, and portfolio growth and examine how these affect their overall returns.
|Name||iShares Russell 1000 Value ETF||Schwab International Equity ETF|
|Category||Large Value||Foreign Large Blend|
The iShares Russell 1000 Value ETF (IWD) is a Large Value fund that is issued by iShares. It currently has 54.1B total assets under management and has yielded an average annual return of 11.40% over the past 10 years. The fund has a dividend yield of 1.57% with an expense ratio of 0.19%.
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%.
IWD’s dividend yield is 0.59% lower than that of SCHF (1.57% vs. 2.16%). Also, IWD yielded on average 4.97% more per year over the past decade (11.40% vs. 6.43%). The expense ratio of IWD is 0.13 percentage points higher than SCHF’s (0.19% vs. 0.06%).
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The iShares Russell 1000 Value ETF (IWD) has the most exposure to the Financial Services sector at 20.43%. This is followed by Healthcare and Industrials at 17.78% and 11.77% respectively. Energy (4.76%), Utilities (4.88%), and Real Estate (4.94%) only make up 14.58% of the fund’s total assets.
IWD’s mid-section with moderate exposure is comprised of Consumer Cyclical, Consumer Defensive, Communication Services, Technology, and Industrials stocks at 5.62%, 7.76%, 8.67%, 10.28%, and 11.77%.
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%.
IWD is 2.58% more exposed to the Financial Services sector than SCHF (20.43% vs 17.85%). IWD’s exposure to Healthcare and Industrials stocks is 6.73% higher and 3.09% lower respectively (17.78% vs. 11.05% and 11.77% vs. 14.86%). In total, Energy, Utilities, and Real Estate also make up 4.09% more of the fund’s holdings compared to SCHF (14.58% vs. 10.49%).
|Berkshire Hathaway Inc Class B||2.58%|
|JPMorgan Chase & Co||2.25%|
|Johnson & Johnson||2.24%|
|UnitedHealth Group Inc||1.78%|
|Procter & Gamble Co||1.71%|
|The Walt Disney Co||1.5%|
|Bank of America Corp||1.43%|
|Comcast Corp Class A||1.33%|
|Exxon Mobil Corp||1.2%|
IWD’s Top Holdings are Berkshire Hathaway Inc Class B, JPMorgan Chase & Co, Johnson & Johnson, UnitedHealth Group Inc, and Procter & Gamble Co at 2.58%, 2.25%, 2.24%, 1.78%, and 1.71%.
The Walt Disney Co (1.5%), Bank of America Corp (1.43%), and Comcast Corp Class A (1.33%) have a slightly smaller but still significant weight. Exxon Mobil Corp and Pfizer Inc are also represented in the IWD’s holdings at 1.2% and 1.18%.
|Samsung Electronics Co Ltd||1.6%|
|ASML Holding NV||1.29%|
|Roche Holding AG||1.24%|
|Toyota Motor Corp||1.02%|
|LVMH Moet Hennessy Louis Vuitton SE||0.93%|
|Shopify Inc A||0.78%|
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%.
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The iShares Russell 1000 Value ETF (IWD) has a Treynor Ratio of 11.06 with a Alpha of -3.23 and a Sharpe Ratio of 0.81. Its R-squared is 92.38 while IWD’s Beta is 1.02. Furthermore, the fund has a Mean Return of 1.03 and a Standard Deviation of 14.35.
The Schwab International Equity ETF (SCHF) has a Treynor Ratio of 5.39 with a R-squared of 98.16 and a Beta of 0.99. Its Alpha is 0.53 while SCHF’s Mean Return is 0.58. Furthermore, the fund has a Sharpe Ratio of 0.42 and a Standard Deviation of 15.08.
IWD’s Mean Return is 0.45 points higher than that of SCHF and its R-squared is 5.78 points lower. With a Standard Deviation of 14.35, IWD is slightly less volatile than SCHF. The Alpha and Beta of IWD are 3.76 points lower and 0.03 points higher than SCHF’s Alpha and Beta.
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IWD had its best year in 2013 with an annual return of 32.18%. IWD’s worst year over the past decade yielded -8.4% and occurred in 2018. In most years the iShares Russell 1000 Value ETF provided moderate returns such as in 2014, 2017, and 2010 where annual returns amounted to 13.21%, 13.47%, and 15.3% 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.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in IWD would have resulted in a final balance of $26,666. This is a profit of $16,666 over 10 years and amounts to a compound annual growth rate (CAGR) of 11.40%.
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%.
IWD’s CAGR is 4.97 percentage points higher than that of SCHF and as a result, would have yielded $9,577 more on a $10,000 investment. Thus, IWD outperformed SCHF by 4.97% annually.
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