SCHF vs. IVE: What’s The Difference?

The Schwab International Equity ETF (SCHF) and the iShares S&P 500 Value ETF (IVE) are both among the Top 100 ETFs. SCHF is a Schwab ETFs Foreign Large Blend fund and IVE is a iShares Large Value fund. So, what’s the difference between SCHF and IVE? And which fund is better?

The expense ratio of SCHF is 0.12 percentage points lower than IVE’s (0.06% vs. 0.18%). SCHF also has a lower exposure to the financial services sector and a higher standard deviation. Overall, SCHF has provided lower returns than IVE over the past 10 years.

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

Summary

SCHF IVE
Name Schwab International Equity ETF iShares S&P 500 Value ETF
Category Foreign Large Blend Large Value
Issuer Schwab ETFs iShares
AUM 26.99B 22.4B
Avg. Return 6.43% 11.68%
Div. Yield 2.16% 1.88%
Expense Ratio 0.06% 0.18%

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%.

The iShares S&P 500 Value ETF (IVE) is a Large Value fund that is issued by iShares. It currently has 22.4B total assets under management and has yielded an average annual return of 11.68% over the past 10 years. The fund has a dividend yield of 1.88% with an expense ratio of 0.18%.

SCHF’s dividend yield is 0.28% higher than that of IVE (2.16% vs. 1.88%). Also, SCHF yielded on average 5.26% less per year over the past decade (6.43% vs. 11.68%). The expense ratio of SCHF is 0.12 percentage points lower than IVE’s (0.06% vs. 0.18%).

Fund Composition

Industry Exposure

SCHF vs. IVE - Industry Exposure

SCHF IVE
Technology 11.55% 9.41%
Industrials 14.86% 12.19%
Energy 4.23% 5.43%
Communication Services 5.65% 6.4%
Utilities 3.09% 4.82%
Healthcare 11.05% 15.4%
Consumer Defensive 9.41% 9.23%
Real Estate 3.17% 4.38%
Financial Services 17.85% 22.06%
Consumer Cyclical 10.87% 7.68%
Basic Materials 8.26% 2.99%

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%.

The iShares S&P 500 Value ETF (IVE) has the most exposure to the Financial Services sector at 22.06%. This is followed by Healthcare and Industrials at 15.4% and 12.19% respectively. Real Estate (4.38%), Utilities (4.82%), and Energy (5.43%) only make up 14.63% of the fund’s total assets.

IVE’s mid-section with moderate exposure is comprised of Communication Services, Consumer Cyclical, Consumer Defensive, Technology, and Industrials stocks at 6.4%, 7.68%, 9.23%, 9.41%, and 12.19%.

SCHF is 4.21% less exposed to the Financial Services sector than IVE (17.85% vs 22.06%). SCHF’s exposure to Industrials and Technology stocks is 2.67% higher and 2.14% higher respectively (14.86% vs. 12.19% and 11.55% vs. 9.41%). In total, Real Estate, Energy, and Communication Services also make up 3.16% less of the fund’s holdings compared to IVE (13.05% vs. 16.21%).

Holdings

SCHF - Holdings

SCHF Holdings Weight
Nestle SA 1.66%
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%
Novartis AG 0.92%
Shopify Inc A 0.78%
AstraZeneca PLC 0.75%
SAP SE 0.74%

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%.

IVE - Holdings

IVE Holdings Weight
Berkshire Hathaway Inc Class B 3.05%
JPMorgan Chase & Co 2.65%
The Walt Disney Co 1.85%
Bank of America Corp 1.67%
Johnson & Johnson 1.57%
Exxon Mobil Corp 1.41%
Pfizer Inc 1.38%
Cisco Systems Inc 1.35%
Verizon Communications Inc 1.33%
Intel Corp 1.25%

IVE’s Top Holdings are Berkshire Hathaway Inc Class B, JPMorgan Chase & Co, The Walt Disney Co, Bank of America Corp, and Johnson & Johnson at 3.05%, 2.65%, 1.85%, 1.67%, and 1.57%.

Exxon Mobil Corp (1.41%), Pfizer Inc (1.38%), and Cisco Systems Inc (1.35%) have a slightly smaller but still significant weight. Verizon Communications Inc and Intel Corp are also represented in the IVE’s holdings at 1.33% and 1.25%.

Risk Analysis

SCHF IVE
Mean Return 0.58 1.05
R-squared 98.16 92.08
Std. Deviation 15.08 14.3
Alpha 0.53 -2.9
Beta 0.99 1.01
Sharpe Ratio 0.42 0.83
Treynor Ratio 5.39 11.41

The Schwab International Equity ETF (SCHF) has a Beta of 0.99 with a Alpha of 0.53 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 Mean Return of 0.58 and a Standard Deviation of 15.08.

The iShares S&P 500 Value ETF (IVE) has a Beta of 1.01 with a Treynor Ratio of 11.41 and a Mean Return of 1.05. Its Standard Deviation is 14.3 while IVE’s Alpha is -2.9. Furthermore, the fund has a R-squared of 92.08 and a Sharpe Ratio of 0.83.

SCHF’s Mean Return is 0.47 points lower than that of IVE and its R-squared is 6.08 points higher. With a Standard Deviation of 15.08, SCHF is slightly more volatile than IVE. The Alpha and Beta of SCHF are 3.43 points higher and 0.02 points lower than IVE’s Alpha and Beta.

Performance

Annual Returns

SCHF vs. IVE - Annual Returns

Year SCHF IVE
2020 9.86% 1.24%
2019 22.15% 31.71%
2018 -14.39% -9.09%
2017 25.83% 15.19%
2016 2.88% 17.17%
2015 -2.44% -3.24%
2014 -4.44% 12.14%
2013 20.03% 31.69%
2012 17.12% 17.45%
2011 -12.32% -0.63%
2010 8.6% 14.9%

SCHF had its best year in 2017 with an annual return of 25.83%. SCHF’s worst year over the past decade yielded -14.39% and occurred in 2018. In most years the Schwab International Equity ETF provided moderate returns such as in 2016, 2010, and 2020 where annual returns amounted to 2.88%, 8.6%, and 9.86% respectively.

The year 2019 was the strongest year for IVE, returning 31.71% on an annual basis. The poorest year for IVE in the last ten years was 2018, with a yield of -9.09%. Most years the iShares S&P 500 Value ETF has given investors modest returns, such as in 2014, 2010, and 2017, when gains were 12.14%, 14.9%, and 15.19% respectively.

Portfolio Growth

SCHF vs. IVE - Portfolio Growth

Fund Initial Balance Final Balance CAGR
SCHF $10,000 $17,089 6.43%
IVE $10,000 $27,285 11.68%

A $10,000 investment in SCHF would have resulted in a final balance of $17,089. This is a profit of $7,089 over 10 years and amounts to a compound annual growth rate (CAGR) of 6.43%.

With a $10,000 investment in IVE, the end total would have been $27,285. This equates to a $17,285 profit over 10 years and a compound annual growth rate (CAGR) of 11.68%.

SCHF’s CAGR is 5.26 percentage points lower than that of IVE and as a result, would have yielded $10,196 less on a $10,000 investment. Thus, SCHF performed worse than IVE by 5.26% annually.


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