SCHD vs SMMD
Schwab US Dividend Equity ETF vs iShares Russell 2500 ETF
Which is better, SCHD or SMMD?
Large Cap Value against Small Cap Blend.
SCHD has a lower expense ratio. SCHD led over 1Y, 5Y and the full window, SMMD over 3Y. SCHD is less concentrated, with 41.5% of the fund in its ten largest positions against 43.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SCHD | SMMD |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.15% |
| AUM | $112.2B | $3.8B |
| Dividend Yield | 3.13% | 1.07% |
| Holdings | 103 | 520 |
| YTD Return | +27.56%Best | +19.67% |
| 1Y Return | +30.29%Best | +25.11% |
| 3Y Return (annualized) | +16.37% | +17.91%Best |
| 5Y Return (annualized) | +10.23%Best | +7.85% |
| Volatility (annualized) | 15.8%Best | 20.3% |
| Max Drawdown | -33.4%Best | -41.1% |
| $10,000 over 5 years | $16,274Best | $14,592 |
| Top 10 Weight | 41.5%Best | 43.8% |
| Fund Family | Charles Schwab Asset Management | iShares by BlackRock (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Small Cap Blend |
| Inception | Oct 20, 2011 | Jul 6, 2017 |
Volatility and max drawdown are measured over the window both funds cover: Jul 7, 2017 to Sep 4, 2026 (9.2 years).
SCHD vs SMMD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 9.2 years both funds cover.
SCHD vs SMMD Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and iShares Russell 2500 ETF (SMMD) is an ETF from iShares by BlackRock (US). Over the past year SCHD returned +30.29% while SMMD returned +25.11%. Year to date, SCHD is up 27.56% versus a gain of 19.67% for SMMD.
Over three years, SCHD compounded at +16.37% per year against +17.91% for SMMD; over five years the annualized figures are +10.23% and +7.85% respectively. Across the full 9-year window we track, SCHD has the edge at +11.92% annualized vs +10.32%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SMMD has been the more volatile fund, with annualized monthly volatility of 20.3% compared with 15.8% 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 -41.1% for SMMD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while SMMD charges 0.15%. On a $10,000 position that is $6 vs $15 annually, a gap of $9 per year that compounds over a long holding period. On income, SCHD currently yields 3.13% against 1.07% for SMMD.
Holdings Overlap
4.2% of SCHD's money is in holdings SMMD also owns. 2.1% of SMMD's money is in holdings SCHD also owns.
SCHD and SMMD share little of their money.
19 positions in common, counted across the 100 positions we hold weights for in SCHD and 512 in SMMD, against full books of 103 and 520.
What only one of them owns
Our book lists 477 positions for SMMD that do not appear in our book for SCHD (96.1% of the fund), and 80 for SCHD that do not appear in SMMD (95.7%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in SMMD | Difference |
|---|---|---|---|
| SNASnap-On Inc. | 0.54% | 0.28% | 0.26% |
| EWBCEast West Bancorp, Inc. | 0.45% | 0.24% | 0.21% |
| APAApa Corp | 0.33% | 0.16% | 0.17% |
| DINOHollyfrontier | 0.31% | 0.17% | 0.14% |
| WSOWatsco Inc | 0.29% | 0.15% | 0.14% |
| SWKSSkyworks Solutions Inc. | 0.27% | 0.13% | 0.14% |
| AFGAmerican Financial Group Inc/Oh | 0.25% | 0.13% | 0.12% |
| ORIOld Republic International Corp | 0.24% | 0.13% | 0.11% |
| COLBColumbia Banking System Inc Common Stock | 0.23% | 0.12% | 0.11% |
| BAHBooz Allen Hamilton Holding Corp. | 0.23% | 0.11% | 0.12% |
You are not choosing between two funds in isolation.
Whichever of SCHD and SMMD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SCHD or SMMD?
SCHD has an expense ratio of 0.06% while SMMD charges 0.15%. SCHD is the cheaper option, by $9 a year on a $10,000 investment.
Which performed better, SCHD or SMMD?
Over the past year SCHD returned +30.29% vs +25.11% for SMMD, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), SCHD annualized +11.92% vs +10.32% for SMMD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or SMMD?
SMMD has been the more volatile fund at 20.3% annualized versus 15.8% for SCHD. Worst drawdown: SCHD -33.4% vs SMMD -41.1%.
Should I hold both SCHD and SMMD?
SCHD and SMMD have a monthly-return correlation of 0.84, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between SCHD and SMMD?
4.2% of SCHD's money is in holdings SMMD also owns. 2.1% of SMMD's is in holdings SCHD also owns. They hold 19 positions in common, counted across the 100 positions we hold weights for in SCHD and 512 in SMMD.
Which pays a higher dividend, SCHD or SMMD?
SCHD yields 3.13% while SMMD yields 1.07%, so SCHD currently pays the higher dividend yield.
Is SMMD better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 5Y and the full window, SMMD over 3Y. SCHD is less concentrated, with 41.5% of the fund in its ten largest positions against 43.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.