SCHD vs SMIZ

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SMIZ offers more diversification with 199 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SMIZ

Side-by-Side Comparison

MetricSCHDSMIZWinner
Expense Ratio0.06%0.55%
AUM$103.7B$274M
Dividend Yield3.31%0.51%
Holdings104201
YTD Return+25.58%+16.45%
1Y Return+31.06%+23.87%
3Y Return (annualized)+15.55%-
5Y Return (annualized)+9.61%-
Volatility (annualized)13.6%17.5%
Max Drawdown-33.4%-25.0%
Fund FamilyCharles Schwab Asset ManagementZacks
CategoryEquityEquity
InceptionOct 20, 2011Oct 3, 2023

SCHD vs SMIZ Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Zacks Small/Mid Cap ETF (SMIZ) is a ETF from Zacks. Over the past year SCHD returned +31.06% while SMIZ returned +23.87%. Year to date, SCHD is up 25.58% versus a gain of 16.45% for SMIZ.

Risk: Volatility and Drawdowns

SMIZ has been the more volatile fund, with annualized monthly volatility of 17.5% 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 -25.0% for SMIZ. 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while SMIZ charges 0.55%. On a $10,000 position that is $6 vs $55 annually, a gap of $49 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.51% for SMIZ.

Holdings Overlap

1.0%overlap

SCHD and SMIZ share 3 holdings out of 296 unique holdings combined, representing a 1.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SCHDWeight in SMIZDifference
HSY0.65%0.52%0.13%
EWBC0.47%0.63%0.16%
CHCO0.05%0.57%0.52%

Frequently Asked Questions

Which is cheaper, SCHD or SMIZ?

SCHD has an expense ratio of 0.06% while SMIZ charges 0.55%. SCHD is the cheaper option. On a $10,000 investment, that is $49 per year of difference.

Which performed better, SCHD or SMIZ?

Over the past year SCHD returned +31.06% vs +23.87% for SMIZ, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), SCHD annualized +11.46% vs +23.21% for SMIZ. Past performance does not guarantee future results.

Which is riskier, SCHD or SMIZ?

SMIZ has been the more volatile fund at 17.5% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs SMIZ -25.0%.

Should I hold both SCHD and SMIZ?

SCHD and SMIZ have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and SMIZ?

SCHD and SMIZ share 3 common holdings with a 1.0% weight overlap. Combined, they hold 296 unique securities.

Which pays a higher dividend, SCHD or SMIZ?

SCHD yields 3.31% while SMIZ yields 0.51%, so SCHD currently pays the higher dividend yield.

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