ISMD vs SCHD
Inspire Small/Mid Cap ETF vs Schwab US Dividend Equity ETF
Which is better, ISMD or SCHD?
Mid Cap Growth against Large Cap Value.
SCHD has a lower expense ratio. ISMD led over 3Y, SCHD over 1Y, 5Y and the full window. ISMD is less concentrated, with 8.6% of the fund in its ten largest positions against 41.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | ISMD | SCHD |
|---|---|---|
| Expense Ratio | 0.53% | 0.06%Best |
| AUM | $332M | $112.1B |
| Dividend Yield | 1.13% | 3.00% |
| Holdings | 503 | 103 |
| YTD Return | +20.84% | +21.00%Best |
| 1Y Return | +21.71% | +25.08%Best |
| 3Y Return (annualized) | +16.79%Best | +15.72% |
| 5Y Return (annualized) | +8.51% | +9.37%Best |
| Volatility (annualized) | 21.1% | 15.6%Best |
| Max Drawdown | -45.5% | -33.4%Best |
| $10,000 over 5 years | $15,043 | $15,649Best |
| Top 10 Weight | 8.6%Best | 41.8% |
| Fund Family | Inspire ETFs | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Mid Cap Growth | Large Cap Value |
| Inception | Feb 27, 2017 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Feb 28, 2017 to Sep 28, 2026 (9.6 years).
ISMD vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 9.6 years both funds cover.
ISMD vs SCHD Performance
Inspire Small/Mid Cap ETF (ISMD) is an ETF from Inspire ETFs and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year ISMD returned +21.71% while SCHD returned +25.08%. Year to date, ISMD is up 20.84% versus a gain of 21.00% for SCHD.
Over three years, ISMD compounded at +16.79% per year against +15.72% for SCHD; over five years the annualized figures are +8.51% and +9.37% respectively. Across the full 10-year window we track, SCHD has the edge at +10.83% annualized vs +8.49%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ISMD has been the more volatile fund, with annualized monthly volatility of 21.1% compared with 15.6% 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 -45.5% for ISMD and -33.4% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ISMD charges 0.53% per year while SCHD charges 0.06%. On a $10,000 position that is $53 vs $6 annually, a gap of $47 per year that compounds over a long holding period. On income, ISMD currently yields 1.13% against 3.00% for SCHD.
Holdings Overlap
2.9% of ISMD's money is in holdings SCHD also owns. 4.8% of SCHD's money is in holdings ISMD also owns.
SCHD and ISMD share little of their money.
5 positions in common, counted across the 298 positions we hold weights for in ISMD and 100 in SCHD, against full books of 503 and 103.
What only one of them owns
Our book lists 94 positions for SCHD that do not appear in our book for ISMD (95.1% of the fund), and 139 for ISMD that do not appear in SCHD (62.7%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of ISMD and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, ISMD or SCHD?
ISMD has an expense ratio of 0.53% while SCHD charges 0.06%. SCHD is the cheaper option, by $47 a year on a $10,000 investment.
Which performed better, ISMD or SCHD?
Over the past year ISMD returned +21.71% vs +25.08% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (10 years), ISMD annualized +8.49% vs +10.83% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ISMD or SCHD?
ISMD has been the more volatile fund at 21.1% annualized versus 15.6% for SCHD. Worst drawdown: ISMD -45.5% vs SCHD -33.4%.
Should I hold both ISMD and SCHD?
ISMD and SCHD have a monthly-return correlation of 0.84, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between ISMD and SCHD?
4.8% of SCHD's money is in holdings ISMD also owns. 4.8% of SCHD's is in holdings ISMD also owns. They hold 5 positions in common, counted across the 298 positions we hold weights for in ISMD and 100 in SCHD.
Which pays a higher dividend, ISMD or SCHD?
ISMD yields 1.13% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.
Is SCHD better than ISMD?
SCHD has a lower expense ratio. ISMD led over 3Y, SCHD over 1Y, 5Y and the full window. ISMD is less concentrated, with 8.6% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.