RMT vs SCHD
Royce Micro-Cap Trust Inc. vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. RMT delivered stronger 1-year returns. RMT offers more diversification with 176 holdings.
Side-by-Side Comparison
| Metric | RMT | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.35% | 0.06% | |
| AUM | $477M | $108.7B | |
| Dividend Yield | 5.36% | 3.13% | |
| Holdings | 176 | 104 | |
| YTD Return | +39.68% | +26.50% | |
| 1Y Return | +56.65% | +31.25% | |
| 3Y Return (annualized) | +26.99% | +16.34% | |
| 5Y Return (annualized) | +13.56% | +10.10% | |
| Volatility (annualized) | 23.5% | 13.6% | |
| Max Drawdown | -80.4% | -33.4% | |
| Fund Family | Franklin Templeton Investments (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Dec 14, 1993 | Oct 20, 2011 |
RMT vs SCHD Performance
Royce Micro-Cap Trust Inc. (RMT) is a ETF from Franklin Templeton Investments (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year RMT returned +56.65% while SCHD returned +31.25%. Year to date, RMT is up 39.68% versus a gain of 26.50% for SCHD.
Over three years, RMT compounded at +26.99% per year against +16.34% for SCHD; over five years the annualized figures are +13.56% and +10.10% respectively. Across the full 15-year window we track, SCHD has the edge at +11.50% annualized vs +2.32%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RMT has been the more volatile fund, with annualized monthly volatility of 23.5% 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 -80.4% for RMT 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
RMT charges 1.35% per year while SCHD charges 0.06%. On a $10,000 position that is $135 vs $6 annually, a gap of $129 per year that compounds over a long holding period. On income, RMT currently yields 5.36% against 3.13% for SCHD.
Holdings Overlap
RMT and SCHD share 0 holdings out of 274 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, RMT or SCHD?
RMT has an expense ratio of 1.35% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $129 per year of difference.
Which performed better, RMT or SCHD?
Over the past year RMT returned +56.65% vs +31.25% for SCHD, so RMT leads on 1-year performance. Over the longest common window we track (15 years), RMT annualized +2.32% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, RMT or SCHD?
RMT has been the more volatile fund at 23.5% annualized versus 13.6% for SCHD. Worst drawdown: RMT -80.4% vs SCHD -33.4%.
Should I hold both RMT and SCHD?
RMT and SCHD have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RMT and SCHD?
RMT and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 274 unique securities.
Which pays a higher dividend, RMT or SCHD?
RMT yields 5.36% while SCHD yields 3.13%, so RMT currently pays the higher dividend yield.
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