NBSM 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

MetricNBSMSCHDWinner
Expense Ratio0.65%0.06%
AUM$114M$103.7B
Dividend Yield0.36%3.31%
Holdings74104
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 FamilyNeuberger BermanCharles Schwab Asset Management
CategoryEquityEquity
InceptionMar 20, 2024Oct 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

0.1%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

StockWeight in NBSMWeight in SCHDDifference
NXST1.29%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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