SCHD vs TMFC
Schwab US Dividend Equity ETF vs Motley Fool 100 Index ETF
Which is better, SCHD or TMFC?
Large Cap Value against Large Cap Growth.
SCHD has a lower expense ratio. SCHD led over 1Y, TMFC over 3Y, 5Y and the full window. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 58.9%.
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 | TMFC |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.50% |
| AUM | $112.1B | $2.1B |
| Dividend Yield | 3.00% | 0.11% |
| Holdings | 103 | 104 |
| YTD Return | +23.46%Best | +11.17% |
| 1Y Return | +27.20%Best | +13.88% |
| 3Y Return (annualized) | +15.41% | +25.15%Best |
| 5Y Return (annualized) | +10.16% | +14.66%Best |
| Volatility (annualized) | 16.2%Best | 18.7% |
| Max Drawdown | -33.4% | -33.1%Best |
| $10,000 over 5 years | $16,223 | $19,818Best |
| Top 10 Weight | 41.8%Best | 58.9% |
| Fund Family | Charles Schwab Asset Management | Motley Fool Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Growth |
| Inception | Oct 20, 2011 | Jan 29, 2018 |
Volatility and max drawdown are measured over the window both funds cover: Jan 30, 2018 to Sep 18, 2026 (8.6 years).
SCHD vs TMFC 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 8.6 years both funds cover.
SCHD vs TMFC Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and Motley Fool 100 Index ETF (TMFC) is an ETF from Motley Fool Asset Management. Over the past year SCHD returned +27.20% while TMFC returned +13.88%. Year to date, SCHD is up 23.46% versus a gain of 11.17% for TMFC.
Over three years, SCHD compounded at +15.41% per year against +25.15% for TMFC; over five years the annualized figures are +10.16% and +14.66% respectively. Across the full 9-year window we track, TMFC has the edge at +17.80% annualized vs +10.07%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TMFC has been the more volatile fund, with annualized monthly volatility of 18.7% compared with 16.2% 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 -33.1% for TMFC. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.65. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SCHD charges 0.06% per year while TMFC charges 0.50%. On a $10,000 position that is $6 vs $50 annually, a gap of $44 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 0.11% for TMFC.
Holdings Overlap
12.1% of SCHD's money is in holdings TMFC also owns. 2.7% of TMFC's money is in holdings SCHD also owns.
SCHD and TMFC share little of their money.
3 positions in common, counted across the 100 positions we hold weights for in SCHD and 101 in TMFC, against full books of 103 and 104.
What only one of them owns
Measured across the 100 and 101 positions we hold weights for.
SCHD holds 96 positions TMFC does not, 87.9% of the fund.
Largest: MRK 4.77%, ABT 4.69%, KO 4.17%, VZ 3.97%, COP 3.94%
You are not choosing between two funds in isolation.
Whichever of SCHD and TMFC 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 TMFC?
SCHD has an expense ratio of 0.06% while TMFC charges 0.50%. SCHD is the cheaper option, by $44 a year on a $10,000 investment.
Which performed better, SCHD or TMFC?
Over the past year SCHD returned +27.20% vs +13.88% for TMFC, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), SCHD annualized +10.07% vs +17.80% for TMFC. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or TMFC?
TMFC has been the more volatile fund at 18.7% annualized versus 16.2% for SCHD. Worst drawdown: SCHD -33.4% vs TMFC -33.1%.
Should I hold both SCHD and TMFC?
SCHD and TMFC have a monthly-return correlation of 0.65, 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 TMFC?
12.1% of SCHD's money is in holdings TMFC also owns. 2.7% of TMFC's is in holdings SCHD also owns. They hold 3 positions in common, counted across the 100 positions we hold weights for in SCHD and 101 in TMFC.
Which pays a higher dividend, SCHD or TMFC?
SCHD yields 3.00% while TMFC yields 0.11%, so SCHD currently pays the higher dividend yield.
Is TMFC better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, TMFC over 3Y, 5Y and the full window. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 58.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.