SCHD vs SMDD

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

MetricSCHDSMDDWinner
Expense Ratio0.06%0.95%
AUM$103.7B$2M
Dividend Yield3.31%6.11%
Holdings1046
YTD Return+25.62%-37.91%
1Y Return+32.62%-50.80%
3Y Return (annualized)+15.58%-37.08%
5Y Return (annualized)+9.63%-30.62%
Volatility (annualized)13.6%52.4%
Max Drawdown-33.4%-100.0%
Fund FamilyCharles Schwab Asset ManagementProShares
CategoryEquityAlternative
InceptionOct 20, 2011Feb 9, 2010

SCHD vs SMDD Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and UltraPro Short MidCap400 (SMDD) is a ETF from ProShares. Over the past year SCHD returned +32.62% while SMDD returned -50.80%. Year to date, SCHD is up 25.62% versus a loss of 37.91% for SMDD.

Over three years, SCHD compounded at +15.58% per year against -37.08% for SMDD; over five years the annualized figures are +9.63% and -30.62% respectively. Across the full 15-year window we track, SCHD has the edge at +11.47% annualized vs -40.35%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SMDD has been the more volatile fund, with annualized monthly volatility of 52.4% 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 -100.0% for SMDD. 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 -0.76. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while SMDD charges 0.95%. On a $10,000 position that is $6 vs $95 annually, a gap of $89 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 6.11% for SMDD.

Frequently Asked Questions

Which is cheaper, SCHD or SMDD?

SCHD has an expense ratio of 0.06% while SMDD charges 0.95%. SCHD is the cheaper option. On a $10,000 investment, that is $89 per year of difference.

Which performed better, SCHD or SMDD?

Over the past year SCHD returned +32.62% vs -50.80% for SMDD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.47% vs -40.35% for SMDD. Past performance does not guarantee future results.

Which is riskier, SCHD or SMDD?

SMDD has been the more volatile fund at 52.4% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs SMDD -100.0%.

Should I hold both SCHD and SMDD?

SCHD and SMDD have a monthly-return correlation of -0.76, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, SCHD or SMDD?

SCHD yields 3.31% while SMDD yields 6.11%, so SMDD currently pays the higher dividend yield.

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