SCHD vs SCHM
Schwab US Dividend Equity ETF vs Schwab US Mid Cap ETF
Quick Verdict
SCHM has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHM offers more diversification with 494 holdings.
Side-by-Side Comparison
| Metric | SCHD | SCHM | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $103.7B | $14.6B | |
| Dividend Yield | 3.31% | 1.20% | |
| Holdings | 104 | 497 | |
| YTD Return | +24.26% | +19.05% | |
| 1Y Return | +31.38% | +28.92% | |
| 3Y Return (annualized) | +15.08% | +16.06% | |
| 5Y Return (annualized) | +9.72% | +8.24% | |
| Volatility (annualized) | 13.6% | 17.2% | |
| Max Drawdown | -33.4% | -42.4% | |
| Fund Family | Charles Schwab Asset Management | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Jan 13, 2011 |
SCHD vs SCHM Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Schwab US Mid Cap ETF (SCHM) is a ETF from Charles Schwab Asset Management. Over the past year SCHD returned +31.38% while SCHM returned +28.92%. Year to date, SCHD is up 24.26% versus a gain of 19.05% for SCHM.
Over three years, SCHD compounded at +15.08% per year against +16.06% for SCHM; over five years the annualized figures are +9.72% and +8.24% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +10.40%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHM has been the more volatile fund, with annualized monthly volatility of 17.2% 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 -33.4% for SCHD and -42.4% for SCHM. 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while SCHM charges 0.03%. On a $10,000 position that is $6 vs $3 annually, a gap of $3 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 1.20% for SCHM.
Holdings Overlap
SCHD and SCHM share 19 holdings out of 575 unique holdings combined, representing a 3.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or SCHM?
SCHD has an expense ratio of 0.06% while SCHM charges 0.03%. SCHM is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHD or SCHM?
Over the past year SCHD returned +31.38% vs +28.92% for SCHM, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs +10.40% for SCHM. Past performance does not guarantee future results.
Which is riskier, SCHD or SCHM?
SCHM has been the more volatile fund at 17.2% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs SCHM -42.4%.
Should I hold both SCHD and SCHM?
SCHD and SCHM have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SCHM?
SCHD and SCHM share 19 common holdings with a 3.2% weight overlap. Combined, they hold 575 unique securities.
Which pays a higher dividend, SCHD or SCHM?
SCHD yields 3.31% while SCHM yields 1.20%, so SCHD currently pays the higher dividend yield.
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