SCHX vs. DIA: What’s The Difference?

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

The expense ratio of SCHX is 0.13 percentage points lower than DIA’s (0.03% vs. 0.16%). SCHX also has a higher exposure to the technology sector and a higher standard deviation. Overall, SCHX has provided higher returns than DIA over the past ten years.

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

Summary

SCHX DIA
Name Schwab U.S. Large-Cap ETF SPDR Dow Jones Industrial Average ETF Trust
Category Large Blend Large Value
Issuer Schwab ETFs SPDR State Street Global Advisors
AUM 30.89B 30.46B
Avg. Return 14.60% 13.35%
Div. Yield 1.41% 1.61%
Expense Ratio 0.03% 0.16%

The Schwab U.S. Large-Cap ETF (SCHX) is a Large Blend fund that is issued by Schwab ETFs. It currently has 30.89B total assets under management and has yielded an average annual return of 14.60% over the past 10 years. The fund has a dividend yield of 1.41% with an expense ratio of 0.03%.

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%.

SCHX’s dividend yield is 0.20% lower than that of DIA (1.41% vs. 1.61%). Also, SCHX yielded on average 1.25% more per year over the past decade (14.60% vs. 13.35%). The expense ratio of SCHX is 0.13 percentage points lower than DIA’s (0.03% vs. 0.16%).

Fund Composition

Industry Exposure

SCHX vs. DIA - Industry Exposure

SCHX DIA
Technology 25.13% 17.32%
Industrials 8.65% 16.7%
Energy 2.72% 2.0%
Communication Services 11.26% 4.42%
Utilities 2.37% 0.0%
Healthcare 13.04% 17.92%
Consumer Defensive 5.97% 6.3%
Real Estate 3.13% 0.0%
Financial Services 13.82% 20.68%
Consumer Cyclical 11.63% 13.44%
Basic Materials 2.28% 1.21%

The Schwab U.S. Large-Cap ETF (SCHX) has the most exposure to the Technology sector at 25.13%. This is followed by Financial Services and Healthcare at 13.82% and 13.04% respectively. Utilities (2.37%), Energy (2.72%), and Real Estate (3.13%) only make up 8.22% of the fund’s total assets.

SCHX’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Consumer Cyclical, and Healthcare stocks at 5.97%, 8.65%, 11.26%, 11.63%, and 13.04%.

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%.

SCHX is 7.81% more exposed to the Technology sector than DIA (25.13% vs 17.32%). SCHX’s exposure to Financial Services and Healthcare stocks is 6.86% lower and 4.88% lower respectively (13.82% vs. 20.68% and 13.04% vs. 17.92%). In total, Utilities, Energy, and Real Estate also make up 6.22% more of the fund’s holdings compared to DIA (8.22% vs. 2.00%).

Holdings

SCHX - Holdings

SCHX Holdings Weight
Apple Inc 5.37%
Microsoft Corp 5.1%
Amazon.com Inc 3.69%
Facebook Inc A 2.08%
Alphabet Inc A 1.84%
Alphabet Inc Class C 1.78%
Berkshire Hathaway Inc Class B 1.32%
Tesla Inc 1.31%
NVIDIA Corp 1.25%
JPMorgan Chase & Co 1.18%

SCHX’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc A, and Alphabet Inc A at 5.37%, 5.1%, 3.69%, 2.08%, and 1.84%.

Alphabet Inc Class C (1.78%), Berkshire Hathaway Inc Class B (1.32%), and Tesla Inc (1.31%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the SCHX’s holdings at 1.25% and 1.18%.

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%.

Risk Analysis

SCHX DIA
Mean Return 1.24 1.13
R-squared 99.83 93.31
Std. Deviation 13.8 13.68
Alpha -0.14 -0.94
Beta 1.02 0.97
Sharpe Ratio 1.03 0.94
Treynor Ratio 14.06 13.07

The Schwab U.S. Large-Cap ETF (SCHX) has a Alpha of -0.14 with a R-squared of 99.83 and a Standard Deviation of 13.8. Its Sharpe Ratio is 1.03 while SCHX’s Treynor Ratio is 14.06. Furthermore, the fund has a Mean Return of 1.24 and a Beta of 1.02.

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

SCHX’s Mean Return is 0.11 points higher than that of DIA and its R-squared is 6.52 points higher. With a Standard Deviation of 13.8, SCHX is slightly more volatile than DIA. The Alpha and Beta of SCHX are 0.80 points higher and 0.05 points higher than DIA’s Alpha and Beta.

Performance

Annual Returns

SCHX vs. DIA - Annual Returns

Year SCHX DIA
2020 20.9% 9.63%
2019 31.4% 25.09%
2018 -4.52% -3.6%
2017 21.91% 27.97%
2016 11.78% 16.28%
2015 1.02% 0.1%
2014 13.33% 9.88%
2013 32.54% 29.41%
2012 16.06% 10.04%
2011 1.61% 8.21%
2010 15.88% 13.87%

SCHX had its best year in 2013 with an annual return of 32.54%. SCHX’s worst year over the past decade yielded -4.52% and occurred in 2018. In most years the Schwab U.S. Large-Cap ETF provided moderate returns such as in 2014, 2010, and 2012 where annual returns amounted to 13.33%, 15.88%, and 16.06% respectively.

The year 2013 was the strongest year for DIA, returning 29.41% on an annual basis. The poorest year for DIA in the last ten years was 2018, with a yield of -3.6%. Most years the SPDR Dow Jones Industrial Average ETF Trust has given investors modest returns, such as in 2014, 2012, and 2010, when gains were 9.88%, 10.04%, and 13.87% respectively.

Portfolio Growth

SCHX vs. DIA - Portfolio Growth

Fund Initial Balance Final Balance CAGR
SCHX $10,000 $36,987 14.60%
DIA $10,000 $33,341 13.35%

A $10,000 investment in SCHX would have resulted in a final balance of $36,987. This is a profit of $26,987 over 10 years and amounts to a compound annual growth rate (CAGR) of 14.60%.

With a $10,000 investment in DIA, the end total would have been $33,341. This equates to a $23,341 profit over 10 years and a compound annual growth rate (CAGR) of 13.35%.

SCHX’s CAGR is 1.25 percentage points higher than that of DIA and as a result, would have yielded $3,646 more on a $10,000 investment. Thus, SCHX outperformed DIA by 1.25% annually.


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