CGMM vs SCHD
Capital Group US Small and Mid Cap ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. CGMM offers more diversification with 116 holdings.
Side-by-Side Comparison
| Metric | CGMM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.51% | 0.06% | |
| AUM | $3.1B | $103.7B | |
| Dividend Yield | 0.37% | 3.31% | |
| Holdings | 110 | 104 | |
| YTD Return | +15.54% | +26.21% | |
| 1Y Return | +20.53% | +29.99% | |
| 3Y Return (annualized) | - | +15.73% | |
| 5Y Return (annualized) | - | +9.67% | |
| Volatility (annualized) | 14.6% | 13.6% | |
| Max Drawdown | -21.0% | -33.4% | |
| Fund Family | Capital Group (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jan 14, 2025 | Oct 20, 2011 |
CGMM vs SCHD Performance
Capital Group US Small and Mid Cap ETF (CGMM) is a ETF from Capital Group (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year CGMM returned +20.53% while SCHD returned +29.99%. Year to date, CGMM is up 15.54% versus a gain of 26.21% for SCHD.
Risk: Volatility and Drawdowns
CGMM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 13.6% for SCHD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -21.0% for CGMM and -33.4% for SCHD. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CGMM charges 0.51% per year while SCHD charges 0.06%. On a $10,000 position that is $51 vs $6 annually, a gap of $45 per year that compounds over a long holding period. On income, CGMM currently yields 0.37% against 3.31% for SCHD.
Holdings Overlap
CGMM and SCHD share 5 holdings out of 211 unique holdings combined, representing a 2.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, CGMM or SCHD?
CGMM has an expense ratio of 0.51% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $45 per year of difference.
Which performed better, CGMM or SCHD?
Over the past year CGMM returned +20.53% vs +29.99% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), CGMM annualized +18.45% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, CGMM or SCHD?
CGMM has been the more volatile fund at 14.6% annualized versus 13.6% for SCHD. Worst drawdown: CGMM -21.0% vs SCHD -33.4%.
Should I hold both CGMM and SCHD?
CGMM and SCHD have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGMM and SCHD?
CGMM and SCHD share 5 common holdings with a 2.3% weight overlap. Combined, they hold 211 unique securities.
Which pays a higher dividend, CGMM or SCHD?
CGMM yields 0.37% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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