What is the main difference in market exposure between SCHC and SCHD?

SCHC targets international small and mid-cap companies, offering geographic diversification outside the United States. In contrast, SCHD focuses on large-cap US value stocks with a strong history of dividend payments. This means SCHC provides access to foreign growth opportunities in smaller businesses, while SCHD concentrates on established American blue-chip firms. Investors seeking global breadth might lean towards SCHC, whereas those prioritising US large-cap stability may prefer SCHD, depending on their broader portfolio strategy.

How do the expense ratios of SCHC and SCHD compare, and why does this matter?

Both SCHC and SCHD share an identical expense ratio of 0.06%, which represents a low-cost approach for ETF investors. Since the fees are equal, cost is not a differentiating factor between these two funds. However, low expense ratios are generally favourable as they minimise the drag on long-term returns. When comparing funds with identical fees, investors should look instead at other factors like strategy, risk profile, and yield to determine which better aligns with their specific financial objectives.

Which fund offers a higher dividend yield based on the provided data?

According to the data, SCHC offers a dividend yield of 3.31%, while SCHD has a yield of 3.11%. Consequently, SCHC currently presents a slightly higher income potential by 0.20 percentage points. However, yield alone does not guarantee total returns, as dividend amounts can fluctuate. Investors often compare these metrics alongside the underlying strategy; SCHD focuses on established US dividend growers, whereas SCHC provides international small-cap exposure, which may carry different volatility characteristics despite the marginally higher current yield.

How do the top holdings of SCHC and SCHD differ in terms of diversification?

SCHD is concentrated in specific large-cap US names, with top holdings like Merck (4.89%) and AbbVie (4.48%) representing significant weights. Conversely, SCHC's top holdings, such as SSRM (0.29%) and FRO (0.27%), have minimal weights, indicating extreme diversification across many small international firms. This means SCHD's performance may be more sensitive to the movements of its largest holdings, while SCHC's broad spread may dilute the impact of any single company's performance on the overall fund.

What does the difference in net assets imply for these two funds?

SCHD manages approximately $112.8 billion in net assets, indicating substantial investor adoption and high liquidity. SCHC, with $5.8 billion, is significantly smaller. Generally, larger asset bases can contribute to tighter bid-ask spreads and easier trade execution for high-volume traders. While SCHC remains a liquid Schwab product, its smaller size might imply lower trading volume compared to SCHD. Investors should consider that asset size often reflects market confidence, though it is not the sole indicator of a fund's strategic merit or future performance.

Are there any shared top-10 holdings between SCHC and SCHD?

Based on the provided top-10 holding data, there are no shared holdings between SCHC and SCHD. SCHC lists SSRM and FRO among its top positions, while SCHD features major US corporations like Merck, AbbVie, Amgen, and Coca-Cola. This distinct separation suggests that holding both funds could theoretically enhance portfolio diversification, as their direct corporate exposures do not overlap in the top tiers, potentially reducing concentration risk within a single asset class or sector.

How does the inception date of these funds relate to their performance history?

SCHC has a longer track record, with an inception date of 14 January 2010, compared to SCHD's 20 October 2011. While SCHD has demonstrated strong performance over its decade-plus history, SCHC offers more historical data points for analysing behaviour during specific market cycles. Investors sometimes view longer histories as a proxy for resilience, though past performance is never indicative of future results. The roughly two-year difference in inception means both funds have experienced major bull and bear markets, but SCHC provides slightly more historical context for its strategy.

How do dividend distributions typically work for ETFs like SCHC and SCHD?

ETFs such as SCHC and SCHD collect dividends from their underlying holdings and typically distribute them to shareholders periodically, often quarterly. The quoted dividend yields (3.31% for SCHC and 3.11% for SCHD) represent an annualised forecast based on recent payouts, not guaranteed amounts. These distributions can vary based on the companies' payout policies and currency fluctuations for international funds. Investors should note that dividend yields fluctuate over time and do not constitute the total return, which also includes capital appreciation or depreciation.

Why is the sector data listed as 'not available' for these comparisons?

The provided fund data indicates that specific sector weights are 'not available' for both SCHC and SCHD on this comparison page. This can occur for various reasons, such as data latency or the fund provider's reporting standards. Without explicit sector weights, investors must rely on the individual top holdings to infer the composition. For SCHD, the presence of healthcare (MRK, ABT, UNH), staples (KO, PG), and energy (CVX, COP) suggests a defensive value tilt, whereas SCHC's small weights make sector inference more difficult without the full breakdown.

Which investing goals might align more closely with SCHD versus SCHC?

SCHD is frequently associated with income-focused and value-oriented investors seeking stable dividends from established US large-cap companies. Its strategy prioritises financial health and consistent payout histories. SCHC may align with investors seeking international diversification and exposure to the potential growth of small and mid-cap foreign markets. While SCHC also offers a competitive yield, its primary differentiator is geographic and size-based diversification. Neither is objectively 'better'; the choice depends on whether the investor's goal is US blue-chip income stability or global small-cap diversification.

SCHC vs SCHD

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

This page compares SCHC and SCHD, examining fees, holdings, dividends and how each fund tracks its market. SCHC is Schwab's International Small-Cap Equity ETF, while SCHD is the US Dividend Equity ETF. Both share a 0.06% expense ratio but differ in strategy, with SCHC targeting foreign small/mid caps and SCHD focusing on large US value stocks. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SCHC

Metric

SCHD

0.06%

Expense Ratio

0.06%

3.31%

Dividend Yield

3.11%

$5.83B

Net Assets

$112.77B

2,196

Holdings

102

Jan 14, 2010

Inception Date

Oct 20, 2011

–

Index Tracked

–

Foreign Small/Mid Blend

Fund Category

Large Value

Both funds charge the same annual fee.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

SCHC

Pros

Schwab International Small-Cap Equity ETF offers a low expense ratio of 0.06%.
Fund has a long history, with inception in January 2010, demonstrating resilience.
Provides exposure to international markets, potentially enhancing portfolio diversification.

Considerations

The fund's dividend yield is 3.31%, which might not be ideal for income-seeking investors.
Smaller net assets of $5.8 billion compared to larger funds could imply lower liquidity.
Top holdings have minimal weights, suggesting a highly diversified yet potentially less impactful investment.

SCHD

Pros

US Dividend Equity ETF has a substantial net asset base of $112.8 billion, indicating strong investor confidence.
Dividend yield of 3.11% may appeal to income-focused investors.
Top holdings include well-established companies, offering a sense of stability and predictability.

Considerations

Expense ratio is the same as Schwab International Small-Cap Equity ETF, at 0.06%, so cost isn't a differentiator.
Concentration in large-cap US companies limits global diversification potential.
Recent inception date of October 2011 means less long-term performance history compared to older funds.

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About SCHC and SCHD

SCHC (SCHC)

Schwab International Small‑Cap Equity ETF (SCHC) offers investors broad exposure to small‑capitalisation companies in developed markets outside the United States. The fund seeks to track an index of international small‑cap equities, providing diversified access across countries and sectors in a single, exchange‑listed vehicle. Small‑cap stocks can offer attractive long‑term growth potential due to their capacity for rapid expansion, but they also tend to be more volatile, less liquid and more sensitive to local economic and currency shifts than large‑cap or domestic holdings. SCHC can complement a global equity allocation, but investors should expect wider performance swings and be mindful of political, market and currency risks. This information is educational and not personal financial advice. Consider your investment objectives, time horizon and risk tolerance, and consult a financial adviser if unsure whether this ETF suits your needs.

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.

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SCHC vs SCHD

Fund Snapshot