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SCHX vs. EFV: What’s The Difference?

The Schwab U.S. Large-Cap ETF (SCHX) and the iShares MSCI EAFE Value ETF (EFV) are both among the Top 100 ETFs. SCHX is a Schwab ETFs Large Blend fund and EFV is a iShares Foreign Large Value fund. So, what’s the difference between SCHX and EFV? And which fund is better?

The expense ratio of SCHX is 0.36 percentage points lower than EFV’s (0.03% vs. 0.39%). SCHX also has a higher exposure to the technology sector and a lower standard deviation. Overall, SCHX has provided higher returns than EFV over the past ten years.

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

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Summary

SCHXEFV
NameSchwab U.S. Large-Cap ETFiShares MSCI EAFE Value ETF
CategoryLarge BlendForeign Large Value
IssuerSchwab ETFsiShares
AUM30.89B14.37B
Avg. Return14.60%3.99%
Div. Yield1.41%2.94%
Expense Ratio0.03%0.39%

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 iShares MSCI EAFE Value ETF (EFV) is a Foreign Large Value fund that is issued by iShares. It currently has 14.37B total assets under management and has yielded an average annual return of 3.99% over the past 10 years. The fund has a dividend yield of 2.94% with an expense ratio of 0.39%.

SCHX’s dividend yield is 1.53% lower than that of EFV (1.41% vs. 2.94%). Also, SCHX yielded on average 10.61% more per year over the past decade (14.60% vs. 3.99%). The expense ratio of SCHX is 0.36 percentage points lower than EFV’s (0.03% vs. 0.39%).

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Fund Composition

Industry Exposure

SCHX vs. EFV - Industry Exposure

SCHXEFV
Technology25.13%2.98%
Industrials8.65%11.6%
Energy2.72%6.6%
Communication Services11.26%6.46%
Utilities2.37%6.14%
Healthcare13.04%9.19%
Consumer Defensive5.97%6.82%
Real Estate3.13%5.06%
Financial Services13.82%26.55%
Consumer Cyclical11.63%9.0%
Basic Materials2.28%9.59%

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 iShares MSCI EAFE Value ETF (EFV) has the most exposure to the Financial Services sector at 26.55%. This is followed by Industrials and Basic Materials at 11.6% and 9.59% respectively. Real Estate (5.06%), Utilities (6.14%), and Communication Services (6.46%) only make up 17.66% of the fund’s total assets.

EFV’s mid-section with moderate exposure is comprised of Energy, Consumer Defensive, Consumer Cyclical, Healthcare, and Basic Materials stocks at 6.6%, 6.82%, 9.0%, 9.19%, and 9.59%.

SCHX is 22.15% more exposed to the Technology sector than EFV (25.13% vs 2.98%). SCHX’s exposure to Financial Services and Healthcare stocks is 12.73% lower and 3.85% higher respectively (13.82% vs. 26.55% and 13.04% vs. 9.19%). In total, Utilities, Energy, and Real Estate also make up 9.58% less of the fund’s holdings compared to EFV (8.22% vs. 17.80%).

Holdings

SCHX - Holdings

SCHX HoldingsWeight
Apple Inc5.37%
Microsoft Corp5.1%
Amazon.com Inc3.69%
Facebook Inc A2.08%
Alphabet Inc A1.84%
Alphabet Inc Class C1.78%
Berkshire Hathaway Inc Class B1.32%
Tesla Inc1.31%
NVIDIA Corp1.25%
JPMorgan Chase & Co1.18%

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%.

EFV - Holdings

EFV HoldingsWeight
Novartis AG2.41%
Toyota Motor Corp2.21%
Commonwealth Bank of Australia1.59%
Siemens AG1.45%
Sanofi SA1.42%
HSBC Holdings PLC1.4%
TotalEnergies SE1.35%
Allianz SE1.23%
GlaxoSmithKline PLC1.18%
Rio Tinto PLC1.1%

EFV’s Top Holdings are Novartis AG, Toyota Motor Corp, Commonwealth Bank of Australia, Siemens AG, and Sanofi SA at 2.41%, 2.21%, 1.59%, 1.45%, and 1.42%.

HSBC Holdings PLC (1.4%), TotalEnergies SE (1.35%), and Allianz SE (1.23%) have a slightly smaller but still significant weight. GlaxoSmithKline PLC and Rio Tinto PLC are also represented in the EFV’s holdings at 1.18% and 1.1%.

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Risk Analysis

SCHXEFV
Mean Return1.240.42
R-squared99.8392.15
Std. Deviation13.816.53
Alpha-0.14-1.77
Beta1.021.05
Sharpe Ratio1.030.26
Treynor Ratio14.062.92

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

The iShares MSCI EAFE Value ETF (EFV) has a Beta of 1.05 with a R-squared of 92.15 and a Mean Return of 0.42. Its Treynor Ratio is 2.92 while EFV’s Alpha is -1.77. Furthermore, the fund has a Sharpe Ratio of 0.26 and a Standard Deviation of 16.53.

SCHX’s Mean Return is 0.82 points higher than that of EFV and its R-squared is 7.68 points higher. With a Standard Deviation of 13.8, SCHX is slightly less volatile than EFV. The Alpha and Beta of SCHX are 1.63 points higher and 0.03 points lower than EFV’s Alpha and Beta.

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Performance

Annual Returns

SCHX vs. EFV - Annual Returns

YearSCHXEFV
202020.9%-2.78%
201931.4%15.97%
2018-4.52%-14.88%
201721.91%21.22%
201611.78%4.87%
20151.02%-5.89%
201413.33%-5.65%
201332.54%22.61%
201216.06%17.52%
20111.61%-12.24%
201015.88%3.18%

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 EFV, returning 22.61% on an annual basis. The poorest year for EFV in the last ten years was 2018, with a yield of -14.88%. Most years the iShares MSCI EAFE Value ETF has given investors modest returns, such as in 2020, 2010, and 2016, when gains were -2.78%, 3.18%, and 4.87% respectively.

Portfolio Growth

SCHX vs. EFV - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
SCHX$10,000$36,98714.60%
EFV$10,000$13,6983.99%

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 EFV, the end total would have been $13,698. This equates to a $3,698 profit over 10 years and a compound annual growth rate (CAGR) of 3.99%.

SCHX’s CAGR is 10.61 percentage points higher than that of EFV and as a result, would have yielded $23,289 more on a $10,000 investment. Thus, SCHX outperformed EFV by 10.61% annually.


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