DSMC vs SCHD
Distillate Small/Mid Cash Flow ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. DSMC offers more diversification with 151 holdings.
Side-by-Side Comparison
| Metric | DSMC | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.06% | |
| AUM | $140M | $103.7B | |
| Dividend Yield | 1.13% | 3.31% | |
| Holdings | 152 | 104 | |
| YTD Return | +22.30% | +25.62% | |
| 1Y Return | +30.02% | +32.62% | |
| 3Y Return (annualized) | +12.67% | +15.58% | |
| 5Y Return (annualized) | - | +9.63% | |
| Volatility (annualized) | 17.0% | 13.6% | |
| Max Drawdown | -28.6% | -33.4% | |
| Fund Family | Distillate Capital Etfs | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Oct 5, 2022 | Oct 20, 2011 |
DSMC vs SCHD Performance
Distillate Small/Mid Cash Flow ETF (DSMC) is a ETF from Distillate Capital Etfs and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year DSMC returned +30.02% while SCHD returned +32.62%. Year to date, DSMC is up 22.30% versus a gain of 25.62% for SCHD.
Over three years, DSMC compounded at +12.67% per year against +15.58% for SCHD. Across the full 3-year window we track, DSMC has the edge at +12.31% annualized vs +11.47%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DSMC has been the more volatile fund, with annualized monthly volatility of 17.0% 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 -28.6% for DSMC 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DSMC charges 0.55% per year while SCHD charges 0.06%. On a $10,000 position that is $55 vs $6 annually, a gap of $49 per year that compounds over a long holding period. On income, DSMC currently yields 1.13% against 3.31% for SCHD.
Holdings Overlap
DSMC and SCHD share 13 holdings out of 238 unique holdings combined, representing a 1.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DSMC or SCHD?
DSMC has an expense ratio of 0.55% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $49 per year of difference.
Which performed better, DSMC or SCHD?
Over the past year DSMC returned +30.02% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), DSMC annualized +12.31% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, DSMC or SCHD?
DSMC has been the more volatile fund at 17.0% annualized versus 13.6% for SCHD. Worst drawdown: DSMC -28.6% vs SCHD -33.4%.
Should I hold both DSMC and SCHD?
DSMC and SCHD have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DSMC and SCHD?
DSMC and SCHD share 13 common holdings with a 1.9% weight overlap. Combined, they hold 238 unique securities.
Which pays a higher dividend, DSMC or SCHD?
DSMC yields 1.13% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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