IWV vs SCHX Fund Comparison

A comparison between IWV and SCHX based on their expense ratio, growth, holdings and how well they match their benchmark performance.

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Minafi's Take on IWV vs SCHX

Here's an in depth look at the differences between iShares Russell 3000 ETF ($IWV) and Schwab U.S. Large-Cap ETF ($SCHX).

To start off, here's a look at the basics of each fund. Keep an eye on the FI Score. That's a custom score from 0 to 100 that we generate based on how good this fund is for the casual investor. Most investors only need a handful of total funds in their portfolio. The higher the score, the more likely this is one of those few. Score alone isn't enough! Keep reading on to see how different (or perhaps similar) these two funds are.

86% FI Score
  • iwv
  • ETF
  • US Stocks
  • Large Blend

iShares Russell 3000 ETF

Expenses: 0.20% (Better than 1% of similar funds)

This is an OK choice for a Large Blend US Stocks fund. See why »

92% FI Score
  • schx
  • ETF
  • US Stocks
  • Large Blend

Schwab U.S. Large-Cap ETF

Expenses: 0.03% (Better than 1% of similar funds)

This is a great choice for a Large Blend US Stocks fund. See why »

Both $IWV and $SCHX are categorized as ETFs. ETFs have an added bonus over mutual funds of being more widely available. Mutual funds are often limited to only the issuing investment brokerage. Since these are both ETFs, you may be able to find these at a wider number of investment apps and websites.

The biggest disadvantage of ETFs is that some platforms only allow you to purchase ETFs in whole shares. So if an ETF is going for $75, you may need to invest in increments of $75. Most 401(k)'s allow for investing down to the penny, but you'll want to verify your platform allows for "fractional ETF Shares".

To learn more about the difference between these two, you can read about the difference between ETFs and Mutual Funds.

When evaluating a fund, the first things I look at are:

  • What it invests in
  • How much it charges in fees
  • How large the fund is

Let's look into these criteria one by one and see if either of these funds stands out.

Fund Holdings Comparison

Both of these funds are US Stocks Large Blend funds – which means they're likely both investing in about the same investments behind the scenes.

Minafi's FI Score algorithm takes into account the category and market. The more niche a fund is, the lower the score. This doesn't mean it's a worse fund, but it does mean you should stop and make sure this a fund you need to diversify your portfolio.

IWV SCHX
Market Score 9.0 /10 9.4 /10
Category Score 10.0 /10 10.0 /10
Total 19.0 19.4

A score of 10 means this is a solid market and category that almost every investor will want to have investments in. The lower the score, the more specific the investment. These scores are based on when most investors would add these funds to their portfolio. A score of 10 means that this fund (or one like it) belongs in a three-fund portfolio. The lower the score, the farther down in your portfolio a fund would go.

For each fund we've created a "diversification score" – a metric to indicate how closely each funds asset allocation matches it's benchmark. For example, an S&P 500 fund would have a diversification score of 10 if it's fully in line with the actual S&P 500.

The diversification score for IWV is 8.2/10, while SCHX has a diversification score of 7.8/10.

In other words, IWV more closely matches it's benchmark.

Winner: tie

Fee Comparison

Fees are one of the biggest killers of portfolio growth. The difference between a 2% fee and a 0.04% fee over 30 years can result in your portfolio having half the total value!

If you're just getting started investing and learning how fees impact your portfolio, I'd encourage you to read through my free investment course (specifically '2.2 - All About Fees') where I go over all the different types of fees you can be charged and how to lower them.

For these two funds, IWV has an expense ratio of 0.20% while SCHX has an expense ratio of 0.03%. In this case, both of these funds have a similar fee.

Winner: $SCHX (barely)

Fund Size Comparison

Both IWV and SCHX have a similar number of assets under management. IWV has 9.24 Billion in assets under management, while SCHX has 19 Billion.

Minafi categorizes both of these funds as large funds. Fund size is a good indication of how many other investors trust this fund. A large fund by itself doesn't mean it's a good fund, but it is one thing to consider when figuring out how to choose the right fund.

Winner: tie

Which Should You Choose? IWV or SCHX?

Since both of these funds are US Stocks Large Blend funds, you'll most likely only need to invest in one of these funds – not both. Running both of these funds through Minafi's FI Score algorithm, gives IWV a score of 86 and SCHX a score of 92.

In this case, one fund has a 90+ score – which the clear winner between these two.

Winner: $SCHX, Schwab U.S. Large-Cap ETF

$IWV

iShares Russell 3000 ETF

86

Read More
Ratings
Rating Type Rating
Diversification Score 8 /10
Expense Ratio Score 9 /10
Expense Rating 8 /10
Market Score 9 /10
Category Score 10 /10
Overview
Overview Details
Fund Type ETF
Inception Date May-22-2000
Exchange NYSE ARCA
Expense Ratio 0.200%
Net Assets 9.24 Billion
Yield 1.86%
Holdings
Description Info
Market US Stocks
Category Large Blend
Sectors
  • Basic Materials 2.34%
  • Communication Services 10.12%
  • Consumer Cyclicals 10.97%
  • Consumer Defensive 6.86%
  • Energy 2.81%
  • Financial Services 13.37%
  • Healthcare 14.84%
  • Industrials 9.03%
  • Real Estate 3.89%
  • Technology 22.64%
  • Utilities 3.13%
Regions
  • Africa/Middle East 0.00%
  • Asia Developed 0.01%
  • Asia Emerging 0.16%
  • Europe Developed 0.24%
  • Europe Emerging 0.00%
  • Latin America 0.03%
  • North America 99.07%
  • United Kingdom 0.50%

$SCHX

Schwab U.S. Large-Cap ETF

92

Read More
Ratings
Rating Type Rating
Diversification Score 8 /10
Expense Ratio Score 10 /10
Expense Rating 10 /10
Market Score 9 /10
Category Score 10 /10
Overview
Overview Details
Fund Type ETF
Inception Date Nov-3-2009
Exchange NYSE ARCA
Expense Ratio 0.030%
Net Assets 19 Billion
Yield 1.99%
Holdings
Description Info
Market US Stocks
Category Large Blend
Sectors
  • Basic Materials 2.21%
  • Communication Services 10.72%
  • Consumer Cyclicals 10.87%
  • Consumer Defensive 6.97%
  • Energy 2.89%
  • Financial Services 13.62%
  • Healthcare 14.37%
  • Industrials 8.46%
  • Real Estate 3.56%
  • Technology 23.27%
  • Utilities 3.06%
Regions
  • Asia Developed 0.04%
  • Asia Emerging 0.10%
  • Europe Developed 0.28%
  • Europe Emerging 0.01%
  • North America 98.94%
  • United Kingdom 0.63%

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