SCHD vs TMFE
Schwab US Dividend Equity ETF vs Motley Fool Capital Efficiency 100 Index ETF
Which is better, SCHD or TMFE?
Large Cap Value against Large Cap Growth.
SCHD has a lower expense ratio. SCHD led over 1Y, TMFE over the full window. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 47.0%.
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 | TMFE |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.50% |
| AUM | $112.1B | $77M |
| Dividend Yield | 3.00% | 0.18% |
| Holdings | 103 | 103 |
| Volatility (annualized) | 15.4%Best | 20.5% |
| Max Drawdown | -16.9%Best | -31.1% |
| $10,000 over 2.9 years | $12,082 | $13,941Best |
| Top 10 Weight | 41.8%Best | 47.0% |
| Fund Family | Charles Schwab Asset Management | Motley Fool Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Growth |
| Inception | Oct 20, 2011 | Dec 30, 2021 |
Not shown on this pair: YTD Return, 1Y Return, 3Y Return (annualized), 5Y Return (annualized).
The two price series end 655 days apart, so a return over any period would be measuring two different stretches of market. Those rows are withheld. SCHD has data through Sep 15, 2026 and TMFE through Nov 29, 2024.
Volatility and max drawdown, and the $10,000 over 2.9 years row, are measured over the window both funds cover: Dec 31, 2021 to Nov 29, 2024 (2.9 years).
Risk: Volatility and Drawdowns
TMFE has been the more volatile fund, with annualized monthly volatility of 20.5% compared with 15.4% 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 -16.9% for SCHD and -31.1% for TMFE. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while TMFE 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 0.18% for TMFE.
Holdings Overlap
3.6% of SCHD's money is in holdings TMFE also owns. 2.0% of TMFE's money is in holdings SCHD also owns.
SCHD and TMFE share little of their money.
2 positions in common, counted across the 100 positions we hold weights for in SCHD and 100 in TMFE, against full books of 103 and 103.
What only one of them owns
Measured across the 100 and 100 positions we hold weights for.
SCHD holds 97 positions TMFE does not, 96.3% of the fund.
Largest: MRK 4.77%, AMGN 4.70%, ABT 4.69%, KO 4.17%, CVX 4.02%
You are not choosing between two funds in isolation.
Whichever of SCHD and TMFE 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 TMFE?
SCHD has an expense ratio of 0.06% while TMFE charges 0.50%. SCHD is the cheaper option, by $44 a year on a $10,000 investment.
Which is riskier, SCHD or TMFE?
TMFE has been the more volatile fund at 20.5% annualized versus 15.4% for SCHD. Worst drawdown: SCHD -16.9% vs TMFE -31.1%.
Should I hold both SCHD and TMFE?
SCHD and TMFE have a monthly-return correlation of 0.73, 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 TMFE?
3.6% of SCHD's money is in holdings TMFE also owns. 2.0% of TMFE's is in holdings SCHD also owns. They hold 2 positions in common, counted across the 100 positions we hold weights for in SCHD and 100 in TMFE.
Which pays a higher dividend, SCHD or TMFE?
SCHD yields 3.00% while TMFE yields 0.18%, so SCHD currently pays the higher dividend yield.
Is TMFE better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, TMFE over the full window. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 47.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.