MSTB vs SCHD
LHA Market State Tactical Beta ETF vs Schwab US Dividend Equity ETF
Which is better, MSTB or SCHD?
Tactical Allocation against Large Cap Value.
SCHD has a lower expense ratio. MSTB led over 3Y, SCHD over 1Y, 5Y and the full window.
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 | MSTB | SCHD |
|---|---|---|
| Expense Ratio | 1.38% | 0.06%Best |
| AUM | $199M | $112.2B |
| Dividend Yield | 0.38% | 3.13% |
| Holdings | 10 | 103 |
| YTD Return | +9.92% | +26.13%Best |
| 1Y Return | +13.63% | +30.01%Best |
| 3Y Return (annualized) | +17.65%Best | +16.09% |
| 5Y Return (annualized) | +7.47% | +9.95%Best |
| Volatility (annualized) | 14.1%Best | 15.1% |
| Max Drawdown | -25.6% | -16.9%Best |
| $10,000 over 5 years | $14,336 | $16,069Best |
| Fund Family | Little Harbor Advisors | Charles Schwab Asset Management |
| Category | Allocation/Balanced | Equity |
| Style | Tactical Allocation | Large Cap Value |
| Inception | Sep 30, 2020 | Oct 20, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 30, 2020 to Sep 8, 2026 (5.9 years).
MSTB 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 5.9 years both funds cover.
MSTB vs SCHD Performance
LHA Market State Tactical Beta ETF (MSTB) is an ETF from Little Harbor Advisors and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year MSTB returned +13.63% while SCHD returned +30.01%. Year to date, MSTB is up 9.92% versus a gain of 26.13% for SCHD.
Over three years, MSTB compounded at +17.65% per year against +16.09% for SCHD; over five years the annualized figures are +7.47% and +9.95% respectively. Across the full 6-year window we track, SCHD has the edge at +14.75% annualized vs +11.00%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 14.1% for MSTB. 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 -25.6% for MSTB and -16.9% 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 0.65. They move together some of the time, and apart the rest.
Fees and Cost Over Time
MSTB charges 1.38% per year while SCHD charges 0.06%. On a $10,000 position that is $138 vs $6 annually, a gap of $132 per year that compounds over a long holding period. On income, MSTB currently yields 0.38% against 3.13% for SCHD.
Holdings Overlap
We hold position weights for 3 holdings in MSTB and 100 in SCHD, totalling 89.7% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 3 positions we hold weights for in MSTB and 100 in SCHD, against full books of 10 and 103.
You are not choosing between two funds in isolation.
Whichever of MSTB 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, MSTB or SCHD?
MSTB has an expense ratio of 1.38% while SCHD charges 0.06%. SCHD is the cheaper option, by $132 a year on a $10,000 investment.
Which performed better, MSTB or SCHD?
Over the past year MSTB returned +13.63% vs +30.01% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), MSTB annualized +11.00% vs +14.75% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MSTB or SCHD?
SCHD has been the more volatile fund at 15.1% annualized versus 14.1% for MSTB. Worst drawdown: MSTB -25.6% vs SCHD -16.9%.
Should I hold both MSTB and SCHD?
MSTB and SCHD have a monthly-return correlation of 0.65, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, MSTB or SCHD?
MSTB yields 0.38% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
Is SCHD better than MSTB?
SCHD has a lower expense ratio. MSTB led over 3Y, SCHD over 1Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.