HWSM vs SCHD
Hotchkis & Wiley SMID Cap Diversified Value Fund ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. HWSM offers more diversification with 165 holdings.
Side-by-Side Comparison
| Metric | HWSM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.06% | |
| AUM | $3M | $103.7B | |
| Dividend Yield | 1.18% | 3.31% | |
| Holdings | 166 | 104 | |
| YTD Return | +17.81% | +26.21% | |
| 1Y Return | +23.23% | +29.99% | |
| 3Y Return (annualized) | - | +15.73% | |
| 5Y Return (annualized) | - | +9.67% | |
| Volatility (annualized) | 12.1% | 13.6% | |
| Max Drawdown | -15.7% | -33.4% | |
| Fund Family | Hotchkis & Wiley Funds | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Mar 31, 2025 | Oct 20, 2011 |
HWSM vs SCHD Performance
Hotchkis & Wiley SMID Cap Diversified Value Fund ETF (HWSM) is a ETF from Hotchkis & Wiley Funds and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year HWSM returned +23.23% while SCHD returned +29.99%. Year to date, HWSM is up 17.81% versus a gain of 26.21% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 12.1% for HWSM. 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 -15.7% for HWSM 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
HWSM 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, HWSM currently yields 1.18% against 3.31% for SCHD.
Holdings Overlap
HWSM and SCHD share 11 holdings out of 254 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, HWSM or SCHD?
HWSM 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, HWSM or SCHD?
Over the past year HWSM returned +23.23% vs +29.99% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (1 years), HWSM annualized +22.98% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, HWSM or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 12.1% for HWSM. Worst drawdown: HWSM -15.7% vs SCHD -33.4%.
Should I hold both HWSM and SCHD?
HWSM 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 HWSM and SCHD?
HWSM and SCHD share 11 common holdings with a 2.3% weight overlap. Combined, they hold 254 unique securities.
Which pays a higher dividend, HWSM or SCHD?
HWSM yields 1.18% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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