What is the difference between AVLV and SCHD in terms of category?

Both AVLV and SCHD are categorised as Large Value ETFs, but their investment strategies differ. AVLV tracks the Avantis US Large Cap Value Index, focusing on undervalued large companies with potential for growth. SCHD follows a dividend equity approach targeting stable and increasing dividends, prioritising companies with a history of reliable payouts. This distinction makes AVLV more aligned with value investing, while SCHD is geared towards income generation.

How do expense ratios affect my investment?

The expense ratio is the annual fee charged by an ETF to manage its assets. SCHD has an expense ratio of 0.06%, which is significantly lower than AVLV's 0.15%. This means, over time, SCHD could retain more of the investment returns due to lower costs, assuming other factors remain equal. Even small differences in fees can compound over years, affecting net returns.

Why does dividend yield matter for ETF investors?

Dividend yield indicates how much income an investor receives from a fund relative to its price. SCHD offers a higher yield of 3.11% compared to AVLV's 1.11%. A higher yield suggests more immediate income, which might appeal to investors focused on cash flow, whereas AVLV's lower yield aligns with its value growth strategy, where reinvested profits contribute to capital appreciation rather than direct payouts.

Can you compare the top holdings of AVLV and SCHD?

AVLV and SCHD have distinct top holdings. AVLV includes tech and financial giants like Microsoft (3.30%) and Meta Platforms (3.24%). SCHD focuses on dividend-paying companies like Merck & Co. (4.89%) and Procter & Gamble (4.02%). Both share Verizon (1.67% for AVLV and 3.95% for SCHD) in their top ten, indicating some overlap but with a clear divergence in strategy. AVLV leans towards growth value stocks, while SCHD emphasises income stability.

How do sector weights impact the comparison between AVLV and SCHD?

Sector weight data is currently unavailable for both AVLV and SCHD, making it difficult to assess their sector-specific exposures directly. Typically, different sector weights would indicate where the fund's holdings are concentrated. This can significantly affect performance in varying economic cycles and could influence an investor's decision to align the fund with expected sector trends.

What does a low expense ratio mean for long-term returns?

A low expense ratio can help maximise long-term returns by reducing the drag on performance from management fees. SCHD's 0.06% expense ratio implies more of its returns are passed on to investors. Conversely, AVLV's 0.15% expense ratio is relatively low compared to actively managed funds but still higher than SCHD's, which could lead to a modest difference in net returns over extended periods, given identical gross performance.

How does net assets affect AVLV and SCHD?

Net assets indicate the size and liquidity of the ETF. SCHD holds substantially more with $112.8 billion compared to AVLV's $21.5 billion. This suggests SCHD may offer better liquidity and operational stability due to its larger asset base. AVLV's smaller size still represents significant assets and indicates growing interest in its strategy but may experience greater volatility due to fewer shares trading.

What are the inception dates of AVLV and SCHD?

AVLV was launched on 21 September 2021, while SCHD started on 20 October 2011. This means SCHD has a much longer track record, providing more historical data for performance analysis. AVLV's recent inception limits its long-term performance visibility but reflects its potential in emerging large-cap value strategies.

Is there any overlap in the top holdings of AVLV and SCHD?

Yes, both ETFs include Verizon (VZ) in their top ten holdings, indicating a slight overlap. However, the rest of the top holdings differ substantially, showcasing AVLV's emphasis on growth-oriented value stocks like Microsoft (MSFT) and Meta (META), versus SCHD's focus on stable dividend-paying companies such as Merck (MRK) and Abbott Laboratories (ABT). This distinction highlights their fundamentally different investment approaches.

What does the difference in dividend yields suggest?

The difference in dividend yields indicates SCHD's focus on income generation, delivering a higher 3.11% yield, compared to AVLV's lower 1.11%. A higher yield often appeals to investors seeking regular income, while AVLV's lower yield reflects a potential strategy aimed at capital growth rather than immediate returns. The choice between the two will depend on the investor's objectives.

How do I determine which ETF aligns with my investment style?

To determine the appropriate ETF for your investment style, consider what factors are more important to you. If immediate income is a priority, SCHD may be a better fit. However, if you are focused on long-term value investing, AVLV could be more aligned. You also want to consider factors like expense ratios, asset sizes, and sector preferences, which further affect suitability.

What does an ETF's asset size tell me?

An ETF's asset size often correlates with its liquidity and potential operational stability. SCHD has a much larger net asset base at $112.8 billion compared to AVLV's $21.5 billion, which could imply higher investor trust and lower trading costs due to volume. AVLV's smaller size may mean less liquidity, which could affect its price movements and the ease of buying or selling shares.

AVLV vs SCHD

Two funds, one decision: we compare cost, performance and what each ETF actually holds in November 2026.

Compare AVLV (Avantis U.S. Large Cap Value ETF) and SCHD (US Dividend Equity ETF Schwab). Review fees (0.15% vs 0.06%), holdings, yields (1.11% vs 3.11%), and how each tracks Large Value. Note: sector weights unavailable for both. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

AVLV

Metric

SCHD

0.15%

Expense Ratio

0.06%

1.11%

Dividend Yield

3.11%

$21.49B

Net Assets

$112.77B

303

Holdings

102

Sep 21, 2021

Inception Date

Oct 20, 2011

–

Index Tracked

–

Large Value

Fund Category

Large Value

SCHD costs about $9.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	AVLV	SCHD
VZVerizon Communications Inc.	1.67%	3.95%

Discover More Comparisons

AVLV vs AVUS

Compare AVLV and AVUS ETFs: both 0.15% fees, differing holdings, yields and tracking. Neutral overview of Avantis large-cap funds for research.

AVLV vs FNDX

Compare AVLV and FNDX on expense ratios (0.15% vs 0.25%), net assets, dividend yields, top holdings, and fundamental tracking methods for informed research.

AVLV vs VTI

Compare AVLV and VTI. Review fees (0.15% vs 0.03%), holdings, dividends and tracking to understand large value vs total stock market differences.

Investment Analysis

AVLV

Pros

AVLV charges a low 0.15% expense ratio relative to most actively managed value funds.
It holds US$21.5 billion in assets, indicating a reasonably scaled large-cap value strategy.
The fund includes Microsoft and Amazon in its top ten holdings despite the value classification.

Considerations

Its 1.11% dividend yield is materially lower than typical income-focused large-cap strategies.
Inception in September 2021 limits track record available for long-term performance evaluation.
Value index methodology details are not available, reducing transparency into holdings selection.

SCHD

Pros

SCHD offers a highly competitive 0.06% expense ratio for a large-cap dividend equity strategy.
It manages US$112.8 billion, ensuring substantial liquidity and institutional credibility for investors.
The 3.11% yield exceeds AVLV's 1.11%, providing meaningful cash flow distribution.

Considerations

Its holdings include defensive stocks such as Coca-Cola and Procter & Gamble, potentially limiting growth upside.
Top ten weights are concentrated in healthcare and energy sectors, creating sector-specific exposure risk.
Inception in October 2011 offers a longer record, but recent performance reflects cyclical dividend strategy limitations.

Related Market Insights

Capital Returns: The Shareholder Yield Play

Explore Capital Returns, a Neme focused on companies rewarding shareholders via buybacks & dividends. Invest in robust firms like Schwab with Nemo's thematic baskets.

Aimee Silverwood | Financial Analyst

25 July 2025

Read Insight

Related Market Insights

Capital Returns: The Shareholder Yield Play

Explore Capital Returns, a Neme focused on companies rewarding shareholders via buybacks & dividends. Invest in robust firms like Schwab with Nemo's thematic baskets.

Aimee Silverwood | Financial Analyst

25 July 2025

Read Insight

About AVLV and SCHD

AVLV (AVLV)

The Avantis U.S. Large Cap Value ETF (AVLV) is an exchange-traded fund designed to provide exposure to large-capitalisation companies in the United States that are considered undervalued relative to their fundamentals. Launched in September 2021, this fund seeks to capture the value factor, which historically suggests that cheaper stocks may outperform more expensive ones over long periods. With a low expense ratio of 0.15%, it offers a cost-efficient way for investors to diversify their portfolios within the US equity market. The fund holds over 300 companies, providing broad exposure while maintaining a focus on value metrics. Investors should note that while value stocks can offer attractive opportunities, they may underperform growth stocks during certain market cycles. As with any investment, values can rise and fall, and returns are not guaranteed.

SCHD (SCHD)

SCHD (Schwab US Dividend Equity ETF) is an exchange‑traded fund that aims to provide exposure to high-quality U.S. companies that have a history of paying dividends. Managed by Charles Schwab, the ETF screens for firms with stable earnings, reasonable payout ratios and consistent dividend records, concentrating on large‑cap names across a range of sectors. Investors often use SCHD for income and as a core holding to capture dividend yield with the diversification and liquidity of an ETF. It is designed to be a low‑cost, transparent vehicle, though dividends and share prices can fall and past performance is not a guarantee of future results. Suitable for investors seeking income and long‑term total return, it may not fit those focused solely on capital growth or who require guarantees. As with any investment, consider costs, tax treatment and how it fits your wider portfolio before investing.

Which Baskets Do They Appear In?

Capital Returns: The Shareholder Yield Play

Following Charles Schwab's massive $20 billion stock buyback and dividend increase, this theme focuses on other financially robust companies that are similarly rewarding their investors. The strategy is to invest in firms with strong cash flows and a commitment to returning capital to shareholders.

Published: 25 July 2025

Explore Basket

Which Baskets Do They Appear In?

Capital Returns: The Shareholder Yield Play

Published: 25 July 2025

Explore Basket

Buy AVLV or SCHD in Nemo

🆓

Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

🔒

Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

💰

6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

AVLV vs SCHD

Fund Snapshot