SCHD vs SMOT
Schwab US Dividend Equity ETF vs VanEck Morningstar SMID Moat ETF
Which is better, SCHD or SMOT?
Large Cap Value against Mid Cap Growth.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y and the full window. SMOT is less concentrated, with 15.4% of the fund in its ten largest positions against 41.8%.
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 | SMOT |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.49% |
| AUM | $112.1B | $339M |
| Dividend Yield | 3.00% | 1.21% |
| Holdings | 103 | 111 |
| YTD Return | +24.59%Best | +7.22% |
| 1Y Return | +28.14%Best | +7.90% |
| 3Y Return (annualized) | +15.58%Best | +10.65% |
| 5Y Return (annualized) | +9.90% | - |
| Volatility (annualized) | 13.4%Best | 17.1% |
| Max Drawdown | -16.1%Best | -23.4% |
| $10,000 over 3.9 years | $16,893Best | $15,466 |
| Top 10 Weight | 41.8% | 15.4%Best |
| Fund Family | Charles Schwab Asset Management | VanEck |
| Category | Equity | Equity |
| Style | Large Cap Value | Mid Cap Growth |
| Inception | Oct 20, 2011 | Oct 4, 2022 |
Volatility and max drawdown, and the $10,000 over 3.9 years row, are measured over the window both funds cover: Oct 6, 2022 to Sep 10, 2026 (3.9 years).
SCHD vs SMOT 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 3.9 years both funds cover.
SCHD vs SMOT Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and VanEck Morningstar SMID Moat ETF (SMOT) is an ETF from VanEck. Over the past year SCHD returned +28.14% while SMOT returned +7.90%. Year to date, SCHD is up 24.59% versus a gain of 7.22% for SMOT.
Over three years, SCHD compounded at +15.58% per year against +10.65% for SMOT. Across the full 4-year window we track, SCHD has the edge at +14.39% annualized vs +11.83%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SMOT has been the more volatile fund, with annualized monthly volatility of 17.1% compared with 13.4% 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 -16.1% for SCHD and -23.4% for SMOT. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while SMOT charges 0.49%. On a $10,000 position that is $6 vs $49 annually, a gap of $43 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 1.21% for SMOT.
Holdings Overlap
5.0% of SCHD's money is in holdings SMOT also owns. 4.0% of SMOT's money is in holdings SCHD also owns.
SCHD and SMOT share little of their money.
5 positions in common, counted across the 100 positions we hold weights for in SCHD and 110 in SMOT, against full books of 103 and 111.
What only one of them owns
Our book lists 103 positions for SMOT that do not appear in our book for SCHD (92.9% of the fund), and 94 for SCHD that do not appear in SMOT (94.9%).
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.
You are not choosing between two funds in isolation.
Whichever of SCHD and SMOT 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 SMOT?
SCHD has an expense ratio of 0.06% while SMOT charges 0.49%. SCHD is the cheaper option, by $43 a year on a $10,000 investment.
Which performed better, SCHD or SMOT?
Over the past year SCHD returned +28.14% vs +7.90% for SMOT, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), SCHD annualized +14.39% vs +11.83% for SMOT. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or SMOT?
SMOT has been the more volatile fund at 17.1% annualized versus 13.4% for SCHD. Worst drawdown: SCHD -16.1% vs SMOT -23.4%.
Should I hold both SCHD and SMOT?
SCHD and SMOT have a monthly-return correlation of 0.76, 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 SMOT?
5.0% of SCHD's money is in holdings SMOT also owns. 4.0% of SMOT's is in holdings SCHD also owns. They hold 5 positions in common, counted across the 100 positions we hold weights for in SCHD and 110 in SMOT.
Which pays a higher dividend, SCHD or SMOT?
SCHD yields 3.00% while SMOT yields 1.21%, so SCHD currently pays the higher dividend yield.
Is SMOT better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y and the full window. SMOT is less concentrated, with 15.4% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.