MTUM vs SCHD
iShares MSCI USA Momentum Factor ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. MTUM offers more diversification with 130 holdings.
Side-by-Side Comparison
| Metric | MTUM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.06% | |
| AUM | $24.1B | $112.2B | |
| Dividend Yield | 0.62% | 3.13% | |
| Holdings | 130 | 103 | |
| YTD Return | +17.64% | +28.33% | |
| 1Y Return | +23.23% | +30.37% | |
| 3Y Return (annualized) | +27.63% | +16.64% | |
| 5Y Return (annualized) | +11.42% | +10.04% | |
| Volatility (annualized) | 16.6% | 13.6% | |
| Max Drawdown | -34.1% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Apr 16, 2013 | Oct 20, 2011 |
MTUM vs SCHD Performance
iShares MSCI USA Momentum Factor ETF (MTUM) is a ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MTUM returned +23.23% while SCHD returned +30.37%. Year to date, MTUM is up 17.64% versus a gain of 28.33% for SCHD.
Over three years, MTUM compounded at +27.63% per year against +16.64% for SCHD; over five years the annualized figures are +11.42% and +10.04% respectively. Across the full 13-year window we track, MTUM has the edge at +14.58% annualized vs +11.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MTUM has been the more volatile fund, with annualized monthly volatility of 16.6% 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 -34.1% for MTUM 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MTUM charges 0.15% per year while SCHD charges 0.06%. On a $10,000 position that is $15 vs $6 annually, a gap of $9 per year that compounds over a long holding period. On income, MTUM currently yields 0.62% against 3.13% for SCHD.
Holdings Overlap
MTUM and SCHD share 10 holdings out of 217 unique holdings combined, representing a 6.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MTUM or SCHD?
MTUM has an expense ratio of 0.15% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, MTUM or SCHD?
Over the past year MTUM returned +23.23% vs +30.37% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (13 years), MTUM annualized +14.58% vs +11.58% for SCHD. Past performance does not guarantee future results.
Which is riskier, MTUM or SCHD?
MTUM has been the more volatile fund at 16.6% annualized versus 13.6% for SCHD. Worst drawdown: MTUM -34.1% vs SCHD -33.4%.
Should I hold both MTUM and SCHD?
MTUM and SCHD have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MTUM and SCHD?
MTUM and SCHD share 10 common holdings with a 6.5% weight overlap. Combined, they hold 217 unique securities.
Which pays a higher dividend, MTUM or SCHD?
MTUM yields 0.62% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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