SCHD vs SMB
Schwab US Dividend Equity ETF vs VanEck Short Muni ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SMB offers more diversification with 177 holdings.
Side-by-Side Comparison
| Metric | SCHD | SMB | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.07% | |
| AUM | $103.7B | $312M | |
| Dividend Yield | 3.31% | 2.69% | |
| Holdings | 104 | 333 | |
| YTD Return | +24.26% | -1.06% | |
| 1Y Return | +31.38% | +0.54% | |
| 3Y Return (annualized) | +15.08% | +2.83% | |
| 5Y Return (annualized) | +9.72% | +0.78% | |
| Volatility (annualized) | 13.6% | 20.6% | |
| Max Drawdown | -33.4% | -29.3% | |
| Fund Family | Charles Schwab Asset Management | VanEck | |
| Category | Equity | Tax Preferred | |
| Inception | Oct 20, 2011 | Feb 22, 2008 |
SCHD vs SMB Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and VanEck Short Muni ETF (SMB) is a ETF from VanEck. Over the past year SCHD returned +31.38% while SMB returned +0.54%. Year to date, SCHD is up 24.26% versus a loss of 1.06% for SMB.
Over three years, SCHD compounded at +15.08% per year against +2.83% for SMB; over five years the annualized figures are +9.72% and +0.78% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +1.87%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SMB has been the more volatile fund, with annualized monthly volatility of 20.6% 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 -29.3% for SMB. 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 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SMB charges 0.07%. On a $10,000 position that is $6 vs $7 annually, a gap of $1 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 2.69% for SMB.
Holdings Overlap
SCHD and SMB share 0 holdings out of 277 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 SMB?
SCHD has an expense ratio of 0.06% while SMB charges 0.07%. SCHD is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, SCHD or SMB?
Over the past year SCHD returned +31.38% vs +0.54% for SMB, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs +1.87% for SMB. Past performance does not guarantee future results.
Which is riskier, SCHD or SMB?
SMB has been the more volatile fund at 20.6% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs SMB -29.3%.
Should I hold both SCHD and SMB?
SCHD and SMB have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SMB?
SCHD and SMB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 277 unique securities.
Which pays a higher dividend, SCHD or SMB?
SCHD yields 3.31% while SMB yields 2.69%, so SCHD currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.