SCHD vs SMCZ

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricSCHDSMCZWinner
Expense Ratio0.06%1.29%
AUM$103.7B$47,364.34
Dividend Yield3.31%0.00%
Holdings1048
YTD Return+26.21%-94.00%
1Y Return+29.99%-91.46%
3Y Return (annualized)+15.73%-
5Y Return (annualized)+9.67%-
Volatility (annualized)13.6%175.6%
Max Drawdown-33.4%-98.5%
Fund FamilyCharles Schwab Asset ManagementDefiance ETFs, LLC
CategoryEquityAlternative
InceptionOct 20, 2011Mar 31, 2025

SCHD vs SMCZ Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Defiance Daily Target 2X Short SMCI ETF (SMCZ) is a ETF from Defiance ETFs, LLC. Over the past year SCHD returned +29.99% while SMCZ returned -91.46%. Year to date, SCHD is up 26.21% versus a loss of 94.00% for SMCZ.

Risk: Volatility and Drawdowns

SMCZ has been the more volatile fund, with annualized monthly volatility of 175.6% 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 -98.5% for SMCZ. 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 -0.02. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while SMCZ charges 1.29%. On a $10,000 position that is $6 vs $129 annually, a gap of $123 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.00% for SMCZ.

Holdings Overlap

0.0%overlap

SCHD and SMCZ share 0 holdings out of 101 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 SMCZ?

SCHD has an expense ratio of 0.06% while SMCZ charges 1.29%. SCHD is the cheaper option. On a $10,000 investment, that is $123 per year of difference.

Which performed better, SCHD or SMCZ?

Over the past year SCHD returned +29.99% vs -91.46% for SMCZ, so SCHD leads on 1-year performance. Over the longest common window we track (1 years), SCHD annualized +11.50% vs -94.18% for SMCZ. Past performance does not guarantee future results.

Which is riskier, SCHD or SMCZ?

SMCZ has been the more volatile fund at 175.6% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs SMCZ -98.5%.

Should I hold both SCHD and SMCZ?

SCHD and SMCZ have a monthly-return correlation of -0.02, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and SMCZ?

SCHD and SMCZ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 101 unique securities.

Which pays a higher dividend, SCHD or SMCZ?

SCHD yields 3.31% while SMCZ yields 0.00%, so SCHD currently pays the higher dividend yield.

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