SCHD vs SMN
Schwab US Dividend Equity ETF vs ProShares UltraShort Materials
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | SCHD | SMN | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.95% | |
| AUM | $112.2B | $4M | |
| Dividend Yield | 3.13% | 3.53% | |
| Holdings | 103 | 5 | |
| YTD Return | +28.59% | -25.13% | |
| 1Y Return | +31.77% | -27.44% | |
| 3Y Return (annualized) | +16.70% | -33.86% | |
| 5Y Return (annualized) | +10.09% | -27.49% | |
| Volatility (annualized) | 13.6% | 45.3% | |
| Max Drawdown | -33.4% | -100.0% | |
| Fund Family | Charles Schwab Asset Management | ProShares | |
| Category | Equity | Alternative | |
| Inception | Oct 20, 2011 | Jan 30, 2007 |
SCHD vs SMN Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and ProShares UltraShort Materials (SMN) is a ETF from ProShares. Over the past year SCHD returned +31.77% while SMN returned -27.44%. Year to date, SCHD is up 28.59% versus a loss of 25.13% for SMN.
Over three years, SCHD compounded at +16.70% per year against -33.86% for SMN; over five years the annualized figures are +10.09% and -27.49% respectively. Across the full 15-year window we track, SCHD has the edge at +11.59% annualized vs -32.18%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SMN has been the more volatile fund, with annualized monthly volatility of 45.3% 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 SMN. 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 -0.79. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SMN 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 3.13% against 3.53% for SMN.
Frequently Asked Questions
Which is cheaper, SCHD or SMN?
SCHD has an expense ratio of 0.06% while SMN 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 SMN?
Over the past year SCHD returned +31.77% vs -27.44% for SMN, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.59% vs -32.18% for SMN. Past performance does not guarantee future results.
Which is riskier, SCHD or SMN?
SMN has been the more volatile fund at 45.3% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs SMN -100.0%.
Should I hold both SCHD and SMN?
SCHD and SMN have a monthly-return correlation of -0.79, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, SCHD or SMN?
SCHD yields 3.13% while SMN yields 3.53%, so SMN currently pays the higher dividend yield.
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