MSTB vs SCHD
LHA Market State Tactical Beta 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 100 holdings.
Side-by-Side Comparison
| Metric | MSTB | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.38% | 0.06% | |
| AUM | $192M | $103.7B | |
| Dividend Yield | 0.38% | 3.31% | |
| Holdings | 8 | 104 | |
| YTD Return | +11.22% | +24.26% | |
| 1Y Return | +17.36% | +31.38% | |
| 3Y Return (annualized) | +17.60% | +15.08% | |
| 5Y Return (annualized) | +8.12% | +9.72% | |
| Volatility (annualized) | 14.2% | 13.6% | |
| Max Drawdown | -25.6% | -33.4% | |
| Fund Family | Little Harbor Advisors | Charles Schwab Asset Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Sep 30, 2020 | Oct 20, 2011 |
MSTB vs SCHD Performance
LHA Market State Tactical Beta ETF (MSTB) is a ETF from Little Harbor Advisors and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MSTB returned +17.36% while SCHD returned +31.38%. Year to date, MSTB is up 11.22% versus a gain of 24.26% for SCHD.
Over three years, MSTB compounded at +17.60% per year against +15.08% for SCHD; over five years the annualized figures are +8.12% and +9.72% respectively. Across the full 6-year window we track, MSTB has the edge at +11.39% annualized vs +11.39%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MSTB has been the more volatile fund, with annualized monthly volatility of 14.2% compared with 13.6% for SCHD. 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 -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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
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 3.31% for SCHD.
Holdings Overlap
MSTB and SCHD share 0 holdings out of 103 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, MSTB or SCHD?
MSTB has an expense ratio of 1.38% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $132 per year of difference.
Which performed better, MSTB or SCHD?
Over the past year MSTB returned +17.36% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), MSTB annualized +11.39% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, MSTB or SCHD?
MSTB has been the more volatile fund at 14.2% annualized versus 13.6% for SCHD. Worst drawdown: MSTB -25.6% vs SCHD -33.4%.
Should I hold both MSTB and SCHD?
MSTB and SCHD have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MSTB and SCHD?
MSTB and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, MSTB or SCHD?
MSTB yields 0.38% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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