QSML vs SCHD
WisdomTree US SmallCap Quality Growth Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. QSML delivered stronger 1-year returns. QSML offers more diversification with 387 holdings.
Side-by-Side Comparison
| Metric | QSML | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.06% | |
| AUM | $12M | $103.7B | |
| Dividend Yield | 0.54% | 3.31% | |
| Holdings | 391 | 104 | |
| YTD Return | +21.04% | +24.26% | |
| 1Y Return | +32.06% | +31.38% | |
| 3Y Return (annualized) | - | +15.08% | |
| 5Y Return (annualized) | - | +9.72% | |
| Volatility (annualized) | 17.8% | 13.6% | |
| Max Drawdown | -28.3% | -33.4% | |
| Fund Family | WisdomTree Investments | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jan 25, 2024 | Oct 20, 2011 |
QSML vs SCHD Performance
WisdomTree US SmallCap Quality Growth Fund (QSML) is a ETF from WisdomTree Investments and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year QSML returned +32.06% while SCHD returned +31.38%. Year to date, QSML is up 21.04% versus a gain of 24.26% for SCHD.
Risk: Volatility and Drawdowns
QSML has been the more volatile fund, with annualized monthly volatility of 17.8% 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 -28.3% for QSML 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QSML charges 0.38% per year while SCHD charges 0.06%. On a $10,000 position that is $38 vs $6 annually, a gap of $32 per year that compounds over a long holding period. On income, QSML currently yields 0.54% against 3.31% for SCHD.
Holdings Overlap
QSML and SCHD share 10 holdings out of 477 unique holdings combined, representing a 0.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QSML or SCHD?
QSML has an expense ratio of 0.38% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, QSML or SCHD?
Over the past year QSML returned +32.06% vs +31.38% for SCHD, so QSML leads on 1-year performance. Over the longest common window we track (3 years), QSML annualized +14.77% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, QSML or SCHD?
QSML has been the more volatile fund at 17.8% annualized versus 13.6% for SCHD. Worst drawdown: QSML -28.3% vs SCHD -33.4%.
Should I hold both QSML and SCHD?
QSML and SCHD have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QSML and SCHD?
QSML and SCHD share 10 common holdings with a 0.7% weight overlap. Combined, they hold 477 unique securities.
Which pays a higher dividend, QSML or SCHD?
QSML yields 0.54% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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