ETF Versus

IWM vs SCHD

iShares Russell 2000 ETF vs Schwab U.S. Dividend Equity ETF

Last updated: 2026-04-08

IWM

iShares Russell 2000 ETF (IWM) is an exchange-traded fund that provides exposure to small-cap U.S. equities with higher growth potential and volatility. It charges a moderate expense ratio of 0.19%. The fund offers a moderate dividend yield of 1.00%. Launched in 2000, the fund has a 26-year track record.

AUM: $71.9B ER: 0.19% Yield: 1.00% Since: May 22, 2000

Schwab U.S. Dividend Equity ETF (SCHD) is an exchange-traded fund that provides exposure to U.S. dividend-paying stocks selected for yield or dividend growth. It charges a low expense ratio of 0.06%. The fund offers an attractive dividend yield of 3.46%. Launched in 2011, the fund has a 15-year track record.

AUM: $84.8B ER: 0.06% Yield: 3.46% Since: Oct 20, 2011

Quick Verdict

SCHD is significantly cheaper at 0.06% vs 0.19% expense ratio, saving you approximately $257 per $10,000 invested over 10 years. Over the past year, IWM has significantly outperformed with a 44.4% return vs 26.0%. Income investors may prefer SCHD for its higher yield (3.5% vs 1.0%).

Key Metrics

Metric IWM SCHD
Expense Ratio 0.19% 0.06%
Dividend Yield 1.0% 3.5%
Fund Family N/A N/A
Category US Small Cap US Dividend

Performance Chart

Indexed to 100 at start (5-year comparison)

70 82 94 106 118 130 2021-04 2022-07 2023-09 2024-12 2026-04
IWM +13.4%
SCHD +24.5%

Performance Comparison

Period IWM SCHD Difference
1 Month -0.50% -1.23% +0.73%
3 Months -2.29% +7.81% -10.10%
6 Months +6.13% +15.45% -9.32%
YTD +1.44% +10.49% -9.05%
1 Year +44.35% +25.99% +18.36%
3 Years +43.59% +25.52% +18.07%
5 Years +13.37% +23.78% -10.41%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period IWM Fees SCHD Fees You Save
$10,000 10 years $377 $120 $257
$10,000 20 years $1,613 $515 $1,098
$10,000 30 years $5,178 $1,664 $3,514
$50,000 10 years $1,884 $598 $1,286
$50,000 30 years $25,888 $8,318 $17,570
$100,000 30 years $51,776 $16,637 $35,139

Risk Metrics

Based on 5 years of daily returns

Metric IWM SCHD
Annualized Volatility 22.6% 14.6%
Max Drawdown -33.1% -18.9%
Sharpe Ratio 0.03 0.07

Dividend Comparison

Metric IWM SCHD
Annual Dividend (per share) $2.54 $1.06
Dividend Yield 1.01% 3.44%
Distribution Frequency Quarterly Quarterly

Top Holdings

0 of top 10 holdings overlap (0% overlap in top holdings)

IWM Top Holdings

NameWeight
Bloom Energy CorporationBE0.99%
FabrinetFN0.67%
COEUR MINING INCCDE.NE0.63%
EchoStar CorporationSATS0.57%
Credo Technology Group Holding LtdCRDO0.55%
Nextpower Inc.NXT0.53%
Kratos Defense & Security Solutions, Inc.KTOS0.45%
Advanced Energy Industries, Inc.AEIS0.42%
Hecla Mining CompanyHL0.41%
Sterling Infrastructure, Inc.STRL0.39%

SCHD Top Holdings

NameWeight
Chevron CorporationCVX4.43%
ConocoPhillipsCOP4.26%
Merck & Co., Inc.MRK4.16%
The Coca-Cola CompanyKO4.06%
Verizon Communications Inc.VZ3.99%
Texas Instruments IncorporatedTXN3.98%
PepsiCo, Inc.PEP3.96%
UnitedHealth Group IncorporatedUNH3.93%
Amgen Inc.AMGN3.80%
Abbott LaboratoriesABT3.76%

Which One Should You Choose?

Choose SCHD if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose IWM if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose SCHD if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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