SCHD vs SQMX

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

MetricSCHDSQMXWinner
Expense Ratio0.06%0.85%
AUM$103.7B$54M
Dividend Yield3.31%0.00%
Holdings1045
YTD Return+25.62%+3.91%
1Y Return+32.62%+7.74%
3Y Return (annualized)+15.58%-
5Y Return (annualized)+9.63%-
Volatility (annualized)13.6%2.9%
Max Drawdown-33.4%-7.4%
Fund FamilyCharles Schwab Asset ManagementFirst Trust Portfolios (US)
CategoryEquityAlternative
InceptionOct 20, 2011Dec 20, 2024

SCHD vs SQMX Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and FT Vest US Equity Quarterly Max Buffer ETF (SQMX) is a ETF from First Trust Portfolios (US). Over the past year SCHD returned +32.62% while SQMX returned +7.74%. Year to date, SCHD is up 25.62% versus a gain of 3.91% for SQMX.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 2.9% for SQMX. 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 -7.4% for SQMX. 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 0.27. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while SQMX charges 0.85%. On a $10,000 position that is $6 vs $85 annually, a gap of $79 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.00% for SQMX.

Holdings Overlap

0.0%overlap

SCHD and SQMX 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 SQMX?

SCHD has an expense ratio of 0.06% while SQMX charges 0.85%. SCHD is the cheaper option. On a $10,000 investment, that is $79 per year of difference.

Which performed better, SCHD or SQMX?

Over the past year SCHD returned +32.62% vs +7.74% for SQMX, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), SCHD annualized +11.47% vs +7.53% for SQMX. Past performance does not guarantee future results.

Which is riskier, SCHD or SQMX?

SCHD has been the more volatile fund at 13.6% annualized versus 2.9% for SQMX. Worst drawdown: SCHD -33.4% vs SQMX -7.4%.

Should I hold both SCHD and SQMX?

SCHD and SQMX have a monthly-return correlation of 0.27, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and SQMX?

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

Which pays a higher dividend, SCHD or SQMX?

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

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