SCHD vs SMLL

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

MetricSCHDSMLLWinner
Expense Ratio0.06%0.80%
AUM$103.7B$14M
Dividend Yield3.31%1.52%
Holdings10449
YTD Return+26.21%+12.12%
1Y Return+29.99%+2.31%
3Y Return (annualized)+15.73%-
5Y Return (annualized)+9.67%-
Volatility (annualized)13.6%17.1%
Max Drawdown-33.4%-23.6%
Fund FamilyCharles Schwab Asset ManagementHarbor Funds
CategoryEquityEquity
InceptionOct 20, 2011Aug 27, 2024

SCHD vs SMLL Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Harbor Active Small Cap ETF (SMLL) is a ETF from Harbor Funds. Over the past year SCHD returned +29.99% while SMLL returned +2.31%. Year to date, SCHD is up 26.21% versus a gain of 12.12% for SMLL.

Risk: Volatility and Drawdowns

SMLL has been the more volatile fund, with annualized monthly volatility of 17.1% 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 -23.6% for SMLL. 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while SMLL charges 0.80%. On a $10,000 position that is $6 vs $80 annually, a gap of $74 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 1.52% for SMLL.

Holdings Overlap

0.2%overlap

SCHD and SMLL share 2 holdings out of 146 unique holdings combined, representing a 0.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SCHDWeight in SMLLDifference
APAM0.07%2.53%2.46%
MC0.13%1.14%1.01%

Frequently Asked Questions

Which is cheaper, SCHD or SMLL?

SCHD has an expense ratio of 0.06% while SMLL charges 0.80%. SCHD is the cheaper option. On a $10,000 investment, that is $74 per year of difference.

Which performed better, SCHD or SMLL?

Over the past year SCHD returned +29.99% vs +2.31% for SMLL, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), SCHD annualized +11.50% vs +7.59% for SMLL. Past performance does not guarantee future results.

Which is riskier, SCHD or SMLL?

SMLL has been the more volatile fund at 17.1% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs SMLL -23.6%.

Should I hold both SCHD and SMLL?

SCHD and SMLL have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and SMLL?

SCHD and SMLL share 2 common holdings with a 0.2% weight overlap. Combined, they hold 146 unique securities.

Which pays a higher dividend, SCHD or SMLL?

SCHD yields 3.31% while SMLL yields 1.52%, so SCHD currently pays the higher dividend yield.

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