MSMR 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

MetricMSMRSCHDWinner
Expense Ratio1.06%0.06%
AUM$183M$103.7B
Dividend Yield1.83%3.31%
Holdings6104
YTD Return+1.36%+25.62%
1Y Return+8.35%+32.62%
3Y Return (annualized)+13.49%+15.58%
5Y Return (annualized)-+9.63%
Volatility (annualized)10.4%13.6%
Max Drawdown-14.9%-33.4%
Fund FamilyAptus Capital AdvisorsCharles Schwab Asset Management
CategoryAllocation/BalancedEquity
InceptionNov 16, 2021Oct 20, 2011

MSMR vs SCHD Performance

McElhenny Sheffield Managed Risk ETF (MSMR) is a ETF from Aptus Capital Advisors and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MSMR returned +8.35% while SCHD returned +32.62%. Year to date, MSMR is up 1.36% versus a gain of 25.62% for SCHD.

Over three years, MSMR compounded at +13.49% per year against +15.58% for SCHD. Across the full 5-year window we track, SCHD has the edge at +11.47% annualized vs +8.40%. 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 10.4% for MSMR. 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 -14.9% for MSMR 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MSMR charges 1.06% per year while SCHD charges 0.06%. On a $10,000 position that is $106 vs $6 annually, a gap of $100 per year that compounds over a long holding period. On income, MSMR currently yields 1.83% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

MSMR and SCHD share 0 holdings out of 105 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, MSMR or SCHD?

MSMR has an expense ratio of 1.06% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $100 per year of difference.

Which performed better, MSMR or SCHD?

Over the past year MSMR returned +8.35% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), MSMR annualized +8.40% vs +11.47% for SCHD. Past performance does not guarantee future results.

Which is riskier, MSMR or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 10.4% for MSMR. Worst drawdown: MSMR -14.9% vs SCHD -33.4%.

Should I hold both MSMR and SCHD?

MSMR and SCHD have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MSMR and SCHD?

MSMR and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.

Which pays a higher dividend, MSMR or SCHD?

MSMR yields 1.83% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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