SCHD vs SCHM
Schwab US Dividend Equity ETF vs Schwab US Mid Cap ETF
Which is better, SCHD or SCHM?
Large Cap Value against Mid Cap Blend.
SCHM has a lower expense ratio. SCHD led over 1Y and 5Y, SCHM over 3Y and the full window. SCHM is less concentrated, with 12.4% of the fund in its ten largest positions against 41.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SCHD | SCHM |
|---|---|---|
| Expense Ratio | 0.06% | 0.03%Best |
| AUM | $112.1B | $14.7B |
| Dividend Yield | 3.00% | 1.24% |
| Holdings | 103 | 495 |
| YTD Return | +23.46%Best | +14.96% |
| 1Y Return | +27.20%Best | +17.46% |
| 3Y Return (annualized) | +15.41% | +16.23%Best |
| 5Y Return (annualized) | +10.16%Best | +7.87% |
| Volatility (annualized) | 13.7%Best | 16.8% |
| Max Drawdown | -33.4%Best | -42.4% |
| $10,000 over 5 years | $16,223Best | $14,605 |
| Top 10 Weight | 41.8% | 12.4%Best |
| Fund Family | Charles Schwab Asset Management | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Mid Cap Blend |
| Inception | Oct 20, 2011 | Jan 13, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 18, 2026 (14.9 years).
SCHD vs SCHM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 14.9 years both funds cover.
SCHD vs SCHM Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and Schwab US Mid Cap ETF (SCHM) is an ETF from Charles Schwab Asset Management. Over the past year SCHD returned +27.20% while SCHM returned +17.46%. Year to date, SCHD is up 23.46% versus a gain of 14.96% for SCHM.
Over three years, SCHD compounded at +15.41% per year against +16.23% for SCHM; over five years the annualized figures are +10.16% and +7.87% respectively. Across the full 15-year window we track, SCHM has the edge at +11.31% annualized vs +11.25%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHM has been the more volatile fund, with annualized monthly volatility of 16.8% compared with 13.7% 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 what each fund did in the worst stretch of the window measured above.
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 3.00% against 1.24% for SCHM.
Holdings Overlap
4.1% of SCHD's money is in holdings SCHM also owns. 3.1% of SCHM's money is in holdings SCHD also owns.
SCHD and SCHM share little of their money.
18 positions in common, counted across the 100 positions we hold weights for in SCHD and 492 in SCHM, against full books of 103 and 495.
What only one of them owns
Our book lists 459 positions for SCHM that do not appear in our book for SCHD (92.9% of the fund), and 81 for SCHD that do not appear in SCHM (95.8%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in SCHM | Difference |
|---|---|---|---|
| SNASnap-On Inc. | 0.49% | 0.37% | 0.12% |
| EWBCEast West Bancorp, Inc. | 0.42% | 0.32% | 0.10% |
| DINOHF Sinclair Corp | 0.38% | 0.29% | 0.09% |
| APAApa Corp | 0.37% | 0.28% | 0.09% |
| FNFFidelity Nationa | 0.29% | 0.22% | 0.07% |
| WSOWatsco Inc | 0.26% | 0.20% | 0.06% |
| SWKSSkyworks Solutions Inc. | 0.25% | 0.19% | 0.06% |
| AFGAmerican Financial Group Inc/Oh | 0.24% | 0.18% | 0.06% |
| ORIOld Republic International Corp | 0.23% | 0.17% | 0.06% |
| BAHBooz Allen Hamilton Holding Corp. | 0.22% | 0.17% | 0.05% |
You are not choosing between two funds in isolation.
Whichever of SCHD and SCHM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $3 a year on a $10,000 investment.
Which performed better, SCHD or SCHM?
Over the past year SCHD returned +27.20% vs +17.46% for SCHM, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.25% vs +11.31% for SCHM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or SCHM?
SCHM has been the more volatile fund at 16.8% annualized versus 13.7% 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 their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between SCHD and SCHM?
4.1% of SCHD's money is in holdings SCHM also owns. 3.1% of SCHM's is in holdings SCHD also owns. They hold 18 positions in common, counted across the 100 positions we hold weights for in SCHD and 492 in SCHM.
Which pays a higher dividend, SCHD or SCHM?
SCHD yields 3.00% while SCHM yields 1.24%, so SCHD currently pays the higher dividend yield.
Is SCHM better than SCHD?
SCHM has a lower expense ratio. SCHD led over 1Y and 5Y, SCHM over 3Y and the full window. SCHM is less concentrated, with 12.4% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.