MZZ 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

MetricMZZSCHDWinner
Expense Ratio0.95%0.06%
AUM$2M$103.7B
Dividend Yield5.88%3.31%
Holdings5104
YTD Return-25.11%+25.33%
1Y Return-34.94%+32.31%
3Y Return (annualized)-22.26%+15.40%
5Y Return (annualized)-17.34%+9.70%
Volatility (annualized)34.9%13.6%
Max Drawdown-99.9%-33.4%
Fund FamilyProSharesCharles Schwab Asset Management
CategoryAlternativeEquity
InceptionJul 11, 2006Oct 20, 2011

MZZ vs SCHD Performance

ProShares UltraShort MidCap 400 (MZZ) is a ETF from ProShares and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MZZ returned -34.94% while SCHD returned +32.31%. Year to date, MZZ is down 25.11% versus a gain of 25.33% for SCHD.

Over three years, MZZ compounded at -22.26% per year against +15.40% for SCHD; over five years the annualized figures are -17.34% and +9.70% respectively. Across the full 15-year window we track, SCHD has the edge at +11.45% annualized vs -31.05%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

MZZ has been the more volatile fund, with annualized monthly volatility of 34.9% 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 -99.9% for MZZ 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 -0.85. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MZZ charges 0.95% per year while SCHD charges 0.06%. On a $10,000 position that is $95 vs $6 annually, a gap of $89 per year that compounds over a long holding period. On income, MZZ currently yields 5.88% against 3.31% for SCHD.

Frequently Asked Questions

Which is cheaper, MZZ or SCHD?

MZZ has an expense ratio of 0.95% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $89 per year of difference.

Which performed better, MZZ or SCHD?

Over the past year MZZ returned -34.94% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), MZZ annualized -31.05% vs +11.45% for SCHD. Past performance does not guarantee future results.

Which is riskier, MZZ or SCHD?

MZZ has been the more volatile fund at 34.9% annualized versus 13.6% for SCHD. Worst drawdown: MZZ -99.9% vs SCHD -33.4%.

Should I hold both MZZ and SCHD?

MZZ and SCHD have a monthly-return correlation of -0.85, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, MZZ or SCHD?

MZZ yields 5.88% while SCHD yields 3.31%, so MZZ currently pays the higher dividend yield.

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