GMMF vs SCHD
iShares Government Money Market 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 | GMMF | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.06% | |
| AUM | $186M | $103.7B | |
| Dividend Yield | 3.86% | 3.31% | |
| Holdings | 152 | 104 | |
| YTD Return | +1.98% | +25.58% | |
| 1Y Return | +3.58% | +31.06% | |
| 3Y Return (annualized) | - | +15.55% | |
| 5Y Return (annualized) | - | +9.61% | |
| Volatility (annualized) | 0.6% | 13.6% | |
| Max Drawdown | -0.3% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Money Market | Equity | |
| Inception | Feb 4, 2025 | Oct 20, 2011 |
GMMF vs SCHD Performance
iShares Government Money Market ETF (GMMF) is a ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year GMMF returned +3.58% while SCHD returned +31.06%. Year to date, GMMF is up 1.98% versus a gain of 25.58% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 0.6% for GMMF. 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 -0.3% for GMMF 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 -0.20. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GMMF charges 0.20% per year while SCHD charges 0.06%. On a $10,000 position that is $20 vs $6 annually, a gap of $14 per year that compounds over a long holding period. On income, GMMF currently yields 3.86% against 3.31% for SCHD.
Holdings Overlap
GMMF and SCHD share 0 holdings out of 116 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, GMMF or SCHD?
GMMF has an expense ratio of 0.20% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, GMMF or SCHD?
Over the past year GMMF returned +3.58% vs +31.06% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), GMMF annualized +3.78% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, GMMF or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 0.6% for GMMF. Worst drawdown: GMMF -0.3% vs SCHD -33.4%.
Should I hold both GMMF and SCHD?
GMMF and SCHD have a monthly-return correlation of -0.20, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GMMF and SCHD?
GMMF and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 116 unique securities.
Which pays a higher dividend, GMMF or SCHD?
GMMF yields 3.86% while SCHD yields 3.31%, so GMMF currently pays the higher dividend yield.
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