SCHD vs SMI
Schwab US Dividend Equity ETF vs HIP Sustainable Muni ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | SMI | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.24% | |
| AUM | $103.7B | $11M | |
| Dividend Yield | 3.31% | 2.83% | |
| Holdings | 104 | 37 | |
| YTD Return | +25.58% | -3.75% | |
| 1Y Return | +31.06% | -4.39% | |
| 3Y Return (annualized) | +15.55% | -0.50% | |
| 5Y Return (annualized) | +9.61% | - | |
| Volatility (annualized) | 13.6% | 6.6% | |
| Max Drawdown | -33.4% | -14.2% | |
| Fund Family | Charles Schwab Asset Management | VanEck | |
| Category | Equity | Tax Preferred | |
| Inception | Oct 20, 2011 | Sep 8, 2021 |
SCHD vs SMI Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and HIP Sustainable Muni ETF (SMI) is a ETF from VanEck. Over the past year SCHD returned +31.06% while SMI returned -4.39%. Year to date, SCHD is up 25.58% versus a loss of 3.75% for SMI.
Over three years, SCHD compounded at +15.55% per year against -0.50% for SMI. Across the full 4-year window we track, SCHD has the edge at +11.46% annualized vs -3.15%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 6.6% for SMI. 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 -14.2% for SMI. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SMI charges 0.24%. On a $10,000 position that is $6 vs $24 annually, a gap of $18 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 2.83% for SMI.
Frequently Asked Questions
Which is cheaper, SCHD or SMI?
SCHD has an expense ratio of 0.06% while SMI charges 0.24%. SCHD is the cheaper option. On a $10,000 investment, that is $18 per year of difference.
Which performed better, SCHD or SMI?
Over the past year SCHD returned +31.06% vs -4.39% for SMI, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), SCHD annualized +11.46% vs -3.15% for SMI. Past performance does not guarantee future results.
Which is riskier, SCHD or SMI?
SCHD has been the more volatile fund at 13.6% annualized versus 6.6% for SMI. Worst drawdown: SCHD -33.4% vs SMI -14.2%.
Should I hold both SCHD and SMI?
SCHD and SMI have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, SCHD or SMI?
SCHD yields 3.31% while SMI yields 2.83%, so SCHD currently pays the higher dividend yield.
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