SCHD vs SETM

Quick Verdict

SCHD has a lower expense ratio. SETM delivered stronger 1-year returns. SETM offers more diversification with 123 holdings.

Lower Fees: SCHDHigher Returns: SETMMore Diversified: SETM

Side-by-Side Comparison

MetricSCHDSETMWinner
Expense Ratio0.06%0.65%
AUM$103.7B$522M
Dividend Yield3.31%1.46%
Holdings104127
YTD Return+24.26%+8.42%
1Y Return+31.38%+64.70%
3Y Return (annualized)+15.08%+25.68%
5Y Return (annualized)+9.72%-
Volatility (annualized)13.6%31.4%
Max Drawdown-33.4%-41.8%
Fund FamilyCharles Schwab Asset ManagementSprott ETFS
CategoryEquityCommodity
InceptionOct 20, 2011Feb 1, 2023

SCHD vs SETM Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Sprott Critical Materials ETF (SETM) is a ETF from Sprott ETFS. Over the past year SCHD returned +31.38% while SETM returned +64.70%. Year to date, SCHD is up 24.26% versus a gain of 8.42% for SETM.

Over three years, SCHD compounded at +15.08% per year against +25.68% for SETM. Across the full 4-year window we track, SETM has the edge at +16.97% annualized vs +11.39%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SETM has been the more volatile fund, with annualized monthly volatility of 31.4% 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 -41.8% for SETM. 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while SETM charges 0.65%. On a $10,000 position that is $6 vs $65 annually, a gap of $59 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 1.46% for SETM.

Holdings Overlap

0.0%overlap

SCHD and SETM share 0 holdings out of 223 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, SCHD or SETM?

SCHD has an expense ratio of 0.06% while SETM charges 0.65%. SCHD is the cheaper option. On a $10,000 investment, that is $59 per year of difference.

Which performed better, SCHD or SETM?

Over the past year SCHD returned +31.38% vs +64.70% for SETM, so SETM leads on 1-year performance. Over the longest common window we track (4 years), SCHD annualized +11.39% vs +16.97% for SETM. Past performance does not guarantee future results.

Which is riskier, SCHD or SETM?

SETM has been the more volatile fund at 31.4% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs SETM -41.8%.

Should I hold both SCHD and SETM?

SCHD and SETM have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and SETM?

SCHD and SETM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 223 unique securities.

Which pays a higher dividend, SCHD or SETM?

SCHD yields 3.31% while SETM yields 1.46%, so SCHD currently pays the higher dividend yield.

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