SCHD vs SMU

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

MetricSCHDSMUWinner
Expense Ratio0.06%1.30%
AUM$103.7B$45M
Dividend Yield3.31%0.00%
Holdings1044
YTD Return+25.33%-52.98%
1Y Return+32.31%-95.01%
3Y Return (annualized)+15.40%-
5Y Return (annualized)+9.70%-
Volatility (annualized)13.6%175.7%
Max Drawdown-33.4%-98.2%
Fund FamilyCharles Schwab Asset ManagementTradr ETFs
CategoryEquityAlternative
InceptionOct 20, 2011Jul 10, 2025

SCHD vs SMU Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Tradr 2X Long SMR Daily ETF (SMU) is a ETF from Tradr ETFs. Over the past year SCHD returned +32.31% while SMU returned -95.01%. Year to date, SCHD is up 25.33% versus a loss of 52.98% for SMU.

Risk: Volatility and Drawdowns

SMU has been the more volatile fund, with annualized monthly volatility of 175.7% 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 -98.2% for SMU. 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 -0.29. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while SMU charges 1.30%. On a $10,000 position that is $6 vs $130 annually, a gap of $124 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.00% for SMU.

Holdings Overlap

0.0%overlap

SCHD and SMU 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 SMU?

SCHD has an expense ratio of 0.06% while SMU charges 1.30%. SCHD is the cheaper option. On a $10,000 investment, that is $124 per year of difference.

Which performed better, SCHD or SMU?

Over the past year SCHD returned +32.31% vs -95.01% for SMU, so SCHD leads on 1-year performance. Over the longest common window we track (1 years), SCHD annualized +11.45% vs -94.12% for SMU. Past performance does not guarantee future results.

Which is riskier, SCHD or SMU?

SMU has been the more volatile fund at 175.7% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs SMU -98.2%.

Should I hold both SCHD and SMU?

SCHD and SMU have a monthly-return correlation of -0.29, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and SMU?

SCHD and SMU share 0 common holdings with a 0.0% weight overlap. Combined, they hold 101 unique securities.

Which pays a higher dividend, SCHD or SMU?

SCHD yields 3.31% while SMU yields 0.00%, so SCHD currently pays the higher dividend yield.

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