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IWD vs. SCHP: What’s The Difference?

The iShares Russell 1000 Value ETF (IWD) and the Schwab U.S. TIPS ETF (SCHP) are both among the Top 100 ETFs. IWD is a iShares Large Value fund and SCHP is a Schwab ETFs Inflation-Protected Bond fund. So, what’s the difference between IWD and SCHP? And which fund is better?

The expense ratio of IWD is 0.14 percentage points higher than SCHP’s (0.19% vs. 0.05%). IWD also has a high exposure to the financial services sector while SCHP is mostly comprised of AAA bonds. Overall, IWD has provided higher returns than SCHP over the past ten years.

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


NameiShares Russell 1000 Value ETFSchwab U.S. TIPS ETF
CategoryLarge ValueInflation-Protected Bond
IssueriSharesSchwab ETFs
Avg. Return11.40%3.92%
Div. Yield1.57%1.97%
Expense Ratio0.19%0.05%

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 U.S. TIPS ETF (SCHP) is a Inflation-Protected Bond fund that is issued by Schwab ETFs. It currently has 18.41B total assets under management and has yielded an average annual return of 3.92% over the past 10 years. The fund has a dividend yield of 1.97% with an expense ratio of 0.05%.

IWD’s dividend yield is 0.40% lower than that of SCHP (1.57% vs. 1.97%). Also, IWD yielded on average 7.48% more per year over the past decade (11.40% vs. 3.92%). The expense ratio of IWD is 0.14 percentage points higher than SCHP’s (0.19% vs. 0.05%).

Fund Composition


IWD - Holdings

IWD HoldingsWeight
Berkshire Hathaway Inc Class B2.58%
JPMorgan Chase & Co2.25%
Johnson & Johnson2.24%
UnitedHealth Group Inc1.78%
Procter & Gamble Co1.71%
The Walt Disney Co1.5%
Bank of America Corp1.43%
Comcast Corp Class A1.33%
Exxon Mobil Corp1.2%
Pfizer Inc1.18%

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%.

SCHP - Holdings

SCHP Bond SectorsWeight
Below B0.0%
US Government0.0%

SCHP’s Top Bond Sectors are ratings of AAA, Others, Below B, B, and BB at 100.0%, 0.0%, 0.0%, 0.0%, and 0.0%. The fund is less weighted towards BBB (0.0%), A (0.0%), and AA (0.0%) rated bonds.

Risk Analysis

Mean Return1.030.28
Std. Deviation14.354.32
Sharpe Ratio0.810.64
Treynor Ratio11.062.31

The iShares Russell 1000 Value ETF (IWD) has a Beta of 1.02 with a Standard Deviation of 14.35 and a Alpha of -3.23. Its Sharpe Ratio is 0.81 while IWD’s R-squared is 92.38. Furthermore, the fund has a Treynor Ratio of 11.06 and a Mean Return of 1.03.

The Schwab U.S. TIPS ETF (SCHP) has a Alpha of -0.5 with a Treynor Ratio of 2.31 and a Sharpe Ratio of 0.64. Its Mean Return is 0.28 while SCHP’s Standard Deviation is 4.32. Furthermore, the fund has a Beta of 1.17 and a R-squared of 66.16.

IWD’s Mean Return is 0.75 points higher than that of SCHP and its R-squared is 26.22 points higher. With a Standard Deviation of 14.35, IWD is slightly more volatile than SCHP. The Alpha and Beta of IWD are 2.73 points lower and 0.15 points lower than SCHP’s Alpha and Beta.


Annual Returns

IWD vs. SCHP - Annual Returns


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 2011 was the strongest year for SCHP, returning 13.38% on an annual basis. The poorest year for SCHP in the last ten years was 2013, with a yield of -8.66%. Most years the Schwab U.S. TIPS ETF has given investors modest returns, such as in 2017, 2014, and 2016, when gains were 2.95%, 3.56%, and 4.6% respectively.

Portfolio Growth

IWD vs. SCHP - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR

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 SCHP, the end total would have been $14,418. This equates to a $4,418 profit over 10 years and a compound annual growth rate (CAGR) of 3.92%.

IWD’s CAGR is 7.48 percentage points higher than that of SCHP and as a result, would have yielded $12,248 more on a $10,000 investment. Thus, IWD outperformed SCHP by 7.48% annually.

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