NBSM vs SCHD
Neuberger Berman Small-Mid Cap 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 | NBSM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.06% | |
| AUM | $114M | $103.7B | |
| Dividend Yield | 0.36% | 3.31% | |
| Holdings | 74 | 104 | |
| YTD Return | +15.08% | +25.62% | |
| 1Y Return | +16.70% | +32.62% | |
| 3Y Return (annualized) | - | +15.58% | |
| 5Y Return (annualized) | - | +9.63% | |
| Volatility (annualized) | 14.8% | 13.6% | |
| Max Drawdown | -25.2% | -33.4% | |
| Fund Family | Neuberger Berman | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Mar 20, 2024 | Oct 20, 2011 |
NBSM vs SCHD Performance
Neuberger Berman Small-Mid Cap ETF (NBSM) is a ETF from Neuberger Berman and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year NBSM returned +16.70% while SCHD returned +32.62%. Year to date, NBSM is up 15.08% versus a gain of 25.62% for SCHD.
Risk: Volatility and Drawdowns
NBSM has been the more volatile fund, with annualized monthly volatility of 14.8% 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 -25.2% for NBSM 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
NBSM charges 0.65% per year while SCHD charges 0.06%. On a $10,000 position that is $65 vs $6 annually, a gap of $59 per year that compounds over a long holding period. On income, NBSM currently yields 0.36% against 3.31% for SCHD.
Holdings Overlap
NBSM and SCHD share 1 holdings out of 171 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in NBSM | Weight in SCHD | Difference |
|---|---|---|---|
| NXST | 1.29% | 0.14% | 1.15% |
Frequently Asked Questions
Which is cheaper, NBSM or SCHD?
NBSM has an expense ratio of 0.65% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $59 per year of difference.
Which performed better, NBSM or SCHD?
Over the past year NBSM returned +16.70% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), NBSM annualized +6.27% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, NBSM or SCHD?
NBSM has been the more volatile fund at 14.8% annualized versus 13.6% for SCHD. Worst drawdown: NBSM -25.2% vs SCHD -33.4%.
Should I hold both NBSM and SCHD?
NBSM 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 NBSM and SCHD?
NBSM and SCHD share 1 common holdings with a 0.1% weight overlap. Combined, they hold 171 unique securities.
Which pays a higher dividend, NBSM or SCHD?
NBSM yields 0.36% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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