The iShares Core S&P Total U.S. Stock Market ETF (ITOT) and the Schwab US Dividend Equity ETF (SCHD) are both interesting ETFs. ITOT tracks S&P Composite 1500 Index and SCHD tracks Dow Jones U.S. Dividend 100™ Index. So, what’s the difference between ITOT vs SCHD? And which fund is better?
ITOT vs SCHD: The expense ratio of ITOT is 0.03% and SCHD is 0.06%. ITOT’s biggest holding is Apple Inc and SCHD’s biggest holding is Broadcom Inc. Overall, ITOT has provided -1.68% Lower returns than SCHD over the past ten years.In this article, we’ll compare ITOT vs SCHD. We’ll look at holdings and performance, as well as at their portfolio growth and annual returns. Moreover, I’ll also discuss ITOT’s and SCHD’s industry exposure, risk metrics, fund composition and examine how these affect their overall returns.
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Summary ITOT vs SCHD
SCHD vs ITOT Table
|Name||iShares Core S&P Total U.S. Stock Market ETF||Schwab US Dividend Equity ETF|
|Category||Large Blend||Large Value|
The iShares Core S&P Total U.S. Stock Market ETF (ITOT) is a S&P Composite 1500 Index fund that is issued by iShares. It currently has $41.96B total assets under management and has yielded an average annual return of 12.54% over the past 10 years. The fund has a dividend yield of 1.56% with an expense ratio of 0.03%.
The Schwab US Dividend Equity ETF (SCHD) is a Dow Jones U.S. Dividend 100™ Index that is issued by Schwab ETFs. It currently has $44.93B total assets under management and has yielded an average annual return of 14.22% over the past 10 years. The fund has a dividend yield of 3.80% with an expense ratio of 0.06%.
ITOT’s dividend yield is Lower than that of SCHD (1.56% vs 3.80%). Also, ITOT yielded on average -1.68% Lower per year over the past decade (12.54% vs 14.22%). The expense ratio of ITOT is -0.03% percentage points Lower than SCHD’s (0.03% vs 0.06%).
Fund Composition ITOT vs SCHD
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Industry Exposure Table vs ITOT
The iShares Core S&P Total U.S. Stock Market ETF (ITOT) has the most exposure to the Technology sector at 27.89%. This is followed by Healthcare and Financial Services at 13.68% and 12.21% respectively. Basic Materials (2.37%), Utilities (2.57%), and Real Estate (3.12%) only make up 8.06% of the fund’s total assets.
ITOT’s middle weighted sectors is made up with moderate exposure to Energy, Consumer Defensive, Communication Services, Industrials, and Consumer Cyclical stocks at 4.17%, 6.28%, 8.04%, 8.91%, and 10.49%.
The Schwab US Dividend Equity ETF (SCHD) has the most exposure to the Industrials sector at 0.1728. This is followed by Healthcare and Financial Services at 0.1566 and 0.1413 respectively. Real Estate (0.0029), Utilities (0.0191), and Basic Materials (0.0385) only make up 0.0605 of the fund’s total assets.
SCHD’s middle weighted sectors is made up with moderate exposure to Communication Services, Energy, Consumer Cyclical, Consumer Defensive, and Technology stocks at 0.0463, 0.0885, 0.0955, 8.91%, and 10.49%.
ITOT is 14.15% More exposed to the Technology sector than SCHD (27.89% vs 13.74%). ITOT’s exposure to Healthcare and Financial Services stocks is -1.98% Less and -1.92% Less respectively (13.68% vs. 15.66%) and (12.21% vs. 14.13%).
In total, ITOT’s bottom three industries, Real Estate, Utilities, and Basic Materials also make up 2.01% Higher of the fund’s holdings compared to SCHD’s bottom three industries. (8.06% vs. 0.0605).
Holdings iShares Core S&P Total U.S. Stock Market ETF (ITOT)
|Alphabet Inc Class A||1.79%|
|Alphabet Inc Class C||1.56%|
|Meta Platforms Inc Class A||1.44%|
|Berkshire Hathaway Inc Class B||1.41%|
|UnitedHealth Group Inc||1.11%|
ITOT’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, NVIDIA Corp, and Alphabet Inc Class A at 6.44%, 5.97%, 2.62%, 2.27%, and 1.79%.
Alphabet Inc Class C (1.56%), Meta Platforms Inc Class A (1.44%), and Berkshire Hathaway Inc Class B (1.41%) have a slightly smaller but still significant weight. Tesla Inc and UnitedHealth Group Inc are also represented in the ITOT’s holdings at 1.34% and 1.11%.
Holdings Schwab US Dividend Equity ETF (SCHD)
|Cisco Systems Inc||0.0426|
|Merck & Co Inc||0.0421|
|The Home Depot Inc||0.0419|
|Texas Instruments Inc||0.0418|
|Verizon Communications Inc||0.0388|
ITOT’s Top Holdings are Broadcom Inc, PepsiCo Inc, Cisco Systems Inc, Merck & Co Inc, and The Home Depot Inc at 0.053, 0.0438, 0.0426, 0.0421, and 0.0419.
Texas Instruments Inc (0.0418), Coca-Cola Co (0.0415), and Chevron Corp (0.0392) have a slightly smaller but still significant weight. Verizon Communications Inc and Pfizer Inc are also represented in the ’s holdings at 0.0388 and 0.0385.
Risk Analysis ITOT vs SCHD
The iShares Core S&P Total U.S. Stock Market ETF has a Standard Deviation of 18.22 with a Alpha of -0.84 and a Treynor Ratio of 10.52. Its Sharpe Ratio is 0.64 while ITOT’s Beta is 1.01. Furthermore, the fund has a Mean Return of 1.09 and a R-squared of 99.09.
The SCHD has a R-squared of 72.59 with a Mean Return of 1.18 and a Standard Deviation of 16.94. Its Sharpe Ratio is 0.74 while SCHD’s Alpha is 2.71. Furthermore, the fund has a Beta of 0.81 and a Treynor Ratio of 14.93.
Performance ITOT vs SCHD
Annual Returns ITOT vs SCHD
ITOT had its best year in 2013 with an annual return of 32.73%. ITOT’s worst year over the past decade yielded -19.47% and occurred in 2022. In most years the iShares Core S&P Total U.S. Stock Market ETF provided moderate returns such as in 2019, 2021, and 2017 where annual returns amounted to 31.35%, 28.78%, and 21.77% respectively.
The year 2013 was the strongest year for SCHD, returning 0.3289 on an annual basis. The poorest year for SCHD in the last ten years was 2018, with a yield of -0.0556. Most years the Schwab US Dividend Equity ETF has given investors modest returns, such as in 2021, 2019, and 2017, when gains were 17.56%, 27.32%, and 16.26% respectively.
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Performance Comparison ITOT vs SCHD
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in ITOT would have resulted in a final balance of $29,499.31. This is a profit of $19,499.31 over 10 years and amounts to a compound annual growth rate (CAGR) of 12.77%.
With a $10,000 investment in SCHD, the end total would have been $33,640.06. This equates to a $23,640.06 profit over 10 years and a compound annual growth rate (CAGR) of 14.43%.
SCHD’s CAGR is 1.66% Higher than that of ITOT and as a result, would have yielded $4,140.76 More on a $10,000 investment. Thus, SCHD Overperformed ITOT by $414.08 annually.