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

The expense ratio of SCHX is 0.15 percentage points lower than IVE’s (0.03% vs. 0.18%). SCHX also has a higher exposure to the technology sector and a lower standard deviation. Overall, SCHX has provided higher returns than IVE over the past ten years.

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

Summary

SCHXIVE
NameSchwab U.S. Large-Cap ETFiShares S&P 500 Value ETF
CategoryLarge BlendLarge Value
IssuerSchwab ETFsiShares
AUM30.89B22.4B
Avg. Return14.60%11.68%
Div. Yield1.41%1.88%
Expense Ratio0.03%0.18%

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 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%.

SCHX’s dividend yield is 0.47% lower than that of IVE (1.41% vs. 1.88%). Also, SCHX yielded on average 2.92% more per year over the past decade (14.60% vs. 11.68%). The expense ratio of SCHX is 0.15 percentage points lower than IVE’s (0.03% vs. 0.18%).

Fund Composition

Industry Exposure

SCHX vs. IVE - Industry Exposure

SCHXIVE
Technology25.13%9.41%
Industrials8.65%12.19%
Energy2.72%5.43%
Communication Services11.26%6.4%
Utilities2.37%4.82%
Healthcare13.04%15.4%
Consumer Defensive5.97%9.23%
Real Estate3.13%4.38%
Financial Services13.82%22.06%
Consumer Cyclical11.63%7.68%
Basic Materials2.28%2.99%

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 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%.

SCHX is 15.72% more exposed to the Technology sector than IVE (25.13% vs 9.41%). SCHX’s exposure to Financial Services and Healthcare stocks is 8.24% lower and 2.36% lower respectively (13.82% vs. 22.06% and 13.04% vs. 15.4%). In total, Utilities, Energy, and Real Estate also make up 6.41% less of the fund’s holdings compared to IVE (8.22% vs. 14.63%).

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%.

IVE - Holdings

IVE HoldingsWeight
Berkshire Hathaway Inc Class B3.05%
JPMorgan Chase & Co2.65%
The Walt Disney Co1.85%
Bank of America Corp1.67%
Johnson & Johnson1.57%
Exxon Mobil Corp1.41%
Pfizer Inc1.38%
Cisco Systems Inc1.35%
Verizon Communications Inc1.33%
Intel Corp1.25%

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

SCHXIVE
Mean Return1.241.05
R-squared99.8392.08
Std. Deviation13.814.3
Alpha-0.14-2.9
Beta1.021.01
Sharpe Ratio1.030.83
Treynor Ratio14.0611.41

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

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

SCHX’s Mean Return is 0.19 points higher than that of IVE and its R-squared is 7.75 points higher. With a Standard Deviation of 13.8, SCHX is slightly less volatile than IVE. The Alpha and Beta of SCHX are 2.76 points higher and 0.01 points higher than IVE’s Alpha and Beta.

Performance

Annual Returns

SCHX vs. IVE - Annual Returns

YearSCHXIVE
202020.9%1.24%
201931.4%31.71%
2018-4.52%-9.09%
201721.91%15.19%
201611.78%17.17%
20151.02%-3.24%
201413.33%12.14%
201332.54%31.69%
201216.06%17.45%
20111.61%-0.63%
201015.88%14.9%

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 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

SCHX vs. IVE - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
SCHX$10,000$36,98714.60%
IVE$10,000$27,28511.68%

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 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%.

SCHX’s CAGR is 2.92 percentage points higher than that of IVE and as a result, would have yielded $9,702 more on a $10,000 investment. Thus, SCHX outperformed IVE by 2.92% annually.

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