SCHD vs SMST
Schwab US Dividend Equity ETF vs Defiance Daily Target 2X Short MSTR ETF
Quick Verdict
SCHD has a lower expense ratio. SMST delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | SMST | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 1.31% | |
| AUM | $103.7B | $24M | |
| Dividend Yield | 3.31% | 0.00% | |
| Holdings | 104 | 8 | |
| YTD Return | +25.33% | -37.26% | |
| 1Y Return | +32.31% | +153.99% | |
| 3Y Return (annualized) | +15.40% | - | |
| 5Y Return (annualized) | +9.70% | - | |
| Volatility (annualized) | 13.6% | 180.6% | |
| Max Drawdown | -33.4% | -99.3% | |
| Fund Family | Charles Schwab Asset Management | Defiance ETFs, LLC | |
| Category | Equity | Alternative | |
| Inception | Oct 20, 2011 | Aug 20, 2024 |
SCHD vs SMST Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Defiance Daily Target 2X Short MSTR ETF (SMST) is a ETF from Defiance ETFs, LLC. Over the past year SCHD returned +32.31% while SMST returned +153.99%. Year to date, SCHD is up 25.33% versus a loss of 37.26% for SMST.
Risk: Volatility and Drawdowns
SMST has been the more volatile fund, with annualized monthly volatility of 180.6% 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 -99.3% for SMST. 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 -0.10. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SMST charges 1.31%. On a $10,000 position that is $6 vs $131 annually, a gap of $125 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.00% for SMST.
Holdings Overlap
SCHD and SMST share 0 holdings out of 101 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or SMST?
SCHD has an expense ratio of 0.06% while SMST charges 1.31%. SCHD is the cheaper option. On a $10,000 investment, that is $125 per year of difference.
Which performed better, SCHD or SMST?
Over the past year SCHD returned +32.31% vs +153.99% for SMST, so SMST leads on 1-year performance. Over the longest common window we track (2 years), SCHD annualized +11.45% vs -83.29% for SMST. Past performance does not guarantee future results.
Which is riskier, SCHD or SMST?
SMST has been the more volatile fund at 180.6% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs SMST -99.3%.
Should I hold both SCHD and SMST?
SCHD and SMST have a monthly-return correlation of -0.10, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SMST?
SCHD and SMST share 0 common holdings with a 0.0% weight overlap. Combined, they hold 101 unique securities.
Which pays a higher dividend, SCHD or SMST?
SCHD yields 3.31% while SMST yields 0.00%, so SCHD currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.