KMLM vs SCHD

KMLM vs SCHD
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Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricKMLMSCHDWinner
Expense Ratio0.90%0.06%
AUM$389M$108.7B
Dividend Yield4.47%3.13%
Holdings32104
YTD Return+11.65%+26.54%
1Y Return+15.28%+30.90%
3Y Return (annualized)-0.33%+16.29%
5Y Return (annualized)+5.42%+9.65%
Volatility (annualized)12.9%13.6%
Max Drawdown-27.5%-33.4%
Fund FamilyKraneSharesCharles Schwab Asset Management
CategoryAlternativeEquity
InceptionDec 1, 2020Oct 20, 2011

KMLM vs SCHD Performance

KraneShares Mount Lucas Managed Futures Index Strategy ETF (KMLM) is a ETF from KraneShares and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year KMLM returned +15.28% while SCHD returned +30.90%. Year to date, KMLM is up 11.65% versus a gain of 26.54% for SCHD.

Over three years, KMLM compounded at -0.33% per year against +16.29% for SCHD; over five years the annualized figures are +5.42% and +9.65% respectively. Across the full 6-year window we track, SCHD has the edge at +11.51% annualized vs +7.24%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 12.9% for KMLM. 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 -27.5% for KMLM 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 -0.21. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

KMLM charges 0.90% per year while SCHD charges 0.06%. On a $10,000 position that is $90 vs $6 annually, a gap of $84 per year that compounds over a long holding period. On income, KMLM currently yields 4.47% against 3.13% for SCHD.

Holdings Overlap

0.0%overlap

KMLM and SCHD share 3 holdings out of 112 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in KMLMWeight in SCHDDifference
TXN0.00%3.53%3.53%
MO0.00%2.86%2.86%
BMY-1.03%3.31%4.34%

Frequently Asked Questions

Which is cheaper, KMLM or SCHD?

KMLM has an expense ratio of 0.90% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $84 per year of difference.

Which performed better, KMLM or SCHD?

Over the past year KMLM returned +15.28% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), KMLM annualized +7.24% vs +11.51% for SCHD. Past performance does not guarantee future results.

Which is riskier, KMLM or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 12.9% for KMLM. Worst drawdown: KMLM -27.5% vs SCHD -33.4%.

Should I hold both KMLM and SCHD?

KMLM and SCHD have a monthly-return correlation of -0.21, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between KMLM and SCHD?

KMLM and SCHD share 3 common holdings with a 0.0% weight overlap. Combined, they hold 112 unique securities.

Which pays a higher dividend, KMLM or SCHD?

KMLM yields 4.47% while SCHD yields 3.13%, so KMLM currently pays the higher dividend yield.

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