KMLM vs SCHD
KraneShares Mount Lucas Managed Futures Index Strategy ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | KMLM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.90% | 0.06% | |
| AUM | $389M | $108.7B | |
| Dividend Yield | 4.47% | 3.13% | |
| Holdings | 32 | 104 | |
| 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 Family | KraneShares | Charles Schwab Asset Management | |
| Category | Alternative | Equity | |
| Inception | Dec 1, 2020 | Oct 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
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.
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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