CTA vs SCHD
Simplify Managed Futures Strategy ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | CTA | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.06% | |
| AUM | $1.5B | $103.7B | |
| Dividend Yield | 5.12% | 3.31% | |
| Holdings | 125 | 104 | |
| YTD Return | +3.47% | +25.62% | |
| 1Y Return | +6.40% | +32.62% | |
| 3Y Return (annualized) | +7.72% | +15.58% | |
| 5Y Return (annualized) | - | +9.63% | |
| Volatility (annualized) | 16.8% | 13.6% | |
| Max Drawdown | -20.8% | -33.4% | |
| Fund Family | Simplify Exchange Traded Funds | Charles Schwab Asset Management | |
| Category | Alternative | Equity | |
| Inception | Mar 1, 2022 | Oct 20, 2011 |
CTA vs SCHD Performance
Simplify Managed Futures Strategy ETF (CTA) is a ETF from Simplify Exchange Traded Funds and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year CTA returned +6.40% while SCHD returned +32.62%. Year to date, CTA is up 3.47% versus a gain of 25.62% for SCHD.
Over three years, CTA compounded at +7.72% per year against +15.58% for SCHD. Across the full 4-year window we track, SCHD has the edge at +11.47% annualized vs +7.60%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
CTA has been the more volatile fund, with annualized monthly volatility of 16.8% 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 -20.8% for CTA 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 -0.05. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CTA charges 0.75% per year while SCHD charges 0.06%. On a $10,000 position that is $75 vs $6 annually, a gap of $69 per year that compounds over a long holding period. On income, CTA currently yields 5.12% against 3.31% for SCHD.
Holdings Overlap
CTA and SCHD share 0 holdings out of 101 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, CTA or SCHD?
CTA has an expense ratio of 0.75% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $69 per year of difference.
Which performed better, CTA or SCHD?
Over the past year CTA returned +6.40% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), CTA annualized +7.60% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, CTA or SCHD?
CTA has been the more volatile fund at 16.8% annualized versus 13.6% for SCHD. Worst drawdown: CTA -20.8% vs SCHD -33.4%.
Should I hold both CTA and SCHD?
CTA and SCHD have a monthly-return correlation of -0.05, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CTA and SCHD?
CTA and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 101 unique securities.
Which pays a higher dividend, CTA or SCHD?
CTA yields 5.12% while SCHD yields 3.31%, so CTA currently pays the higher dividend yield.
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