HCOM vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricHCOMSCHDWinner
Expense Ratio0.59%0.06%
AUM$9M$103.7B
Dividend Yield10.95%3.31%
Holdings55104
YTD Return+0.71%+24.26%
1Y Return-4.90%+31.38%
3Y Return (annualized)-6.95%+15.08%
5Y Return (annualized)-+9.72%
Volatility (annualized)14.7%13.6%
Max Drawdown-28.8%-33.4%
Fund FamilyHartford FundsCharles Schwab Asset Management
CategoryCommodityEquity
InceptionSep 14, 2021Oct 20, 2011

HCOM vs SCHD Performance

Hartford Schroders Commodity Strategy ETF (HCOM) is a ETF from Hartford Funds and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year HCOM returned -4.90% while SCHD returned +31.38%. Year to date, HCOM is up 0.71% versus a gain of 24.26% for SCHD.

Over three years, HCOM compounded at -6.95% per year against +15.08% for SCHD. Across the full 4-year window we track, SCHD has the edge at +11.39% annualized vs +0.68%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

HCOM has been the more volatile fund, with annualized monthly volatility of 14.7% 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 -28.8% for HCOM 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

HCOM charges 0.59% per year while SCHD charges 0.06%. On a $10,000 position that is $59 vs $6 annually, a gap of $53 per year that compounds over a long holding period. On income, HCOM currently yields 10.95% against 3.31% for SCHD.

Frequently Asked Questions

Which is cheaper, HCOM or SCHD?

HCOM has an expense ratio of 0.59% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $53 per year of difference.

Which performed better, HCOM or SCHD?

Over the past year HCOM returned -4.90% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), HCOM annualized +0.68% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, HCOM or SCHD?

HCOM has been the more volatile fund at 14.7% annualized versus 13.6% for SCHD. Worst drawdown: HCOM -28.8% vs SCHD -33.4%.

Should I hold both HCOM and SCHD?

HCOM and SCHD have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, HCOM or SCHD?

HCOM yields 10.95% while SCHD yields 3.31%, so HCOM currently pays the higher dividend yield.

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