ISMF 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

MetricISMFSCHDWinner
Expense Ratio0.80%0.06%
AUM$61M$103.7B
Dividend Yield2.58%3.31%
Holdings127104
YTD Return+6.99%+26.21%
1Y Return+19.52%+29.99%
3Y Return (annualized)-+15.73%
5Y Return (annualized)-+9.67%
Volatility (annualized)6.1%13.6%
Max Drawdown-4.2%-33.4%
Fund FamilyiShares by BlackRock (US)Charles Schwab Asset Management
CategoryAlternativeEquity
InceptionMar 12, 2025Oct 20, 2011

ISMF vs SCHD Performance

iShares Managed Futures Active ETF (ISMF) 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 ISMF returned +19.52% while SCHD returned +29.99%. Year to date, ISMF is up 6.99% 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 6.1% for ISMF. 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 -4.2% for ISMF 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

ISMF charges 0.80% per year while SCHD charges 0.06%. On a $10,000 position that is $80 vs $6 annually, a gap of $74 per year that compounds over a long holding period. On income, ISMF currently yields 2.58% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

ISMF and SCHD share 0 holdings out of 101 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, ISMF or SCHD?

ISMF has an expense ratio of 0.80% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $74 per year of difference.

Which performed better, ISMF or SCHD?

Over the past year ISMF returned +19.52% vs +29.99% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (1 years), ISMF annualized +14.07% vs +11.50% for SCHD. Past performance does not guarantee future results.

Which is riskier, ISMF or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 6.1% for ISMF. Worst drawdown: ISMF -4.2% vs SCHD -33.4%.

Should I hold both ISMF and SCHD?

ISMF and SCHD have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between ISMF and SCHD?

ISMF and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 101 unique securities.

Which pays a higher dividend, ISMF or SCHD?

ISMF yields 2.58% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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