SCHD vs TMFG

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

MetricSCHDTMFGWinner
Expense Ratio0.06%0.85%
AUM$103.7B$349M
Dividend Yield3.31%0.27%
Holdings10446
YTD Return+26.21%+6.03%
1Y Return+29.99%+4.56%
3Y Return (annualized)+15.73%+12.20%
5Y Return (annualized)+9.67%-
Volatility (annualized)13.6%17.3%
Max Drawdown-33.4%-33.7%
Fund FamilyCharles Schwab Asset ManagementMotley Fool Asset Management
CategoryEquityEquity
InceptionOct 20, 2011Jun 17, 2014

SCHD vs TMFG Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Motley Fool Global Opportunities ETF (TMFG) is a ETF from Motley Fool Asset Management. Over the past year SCHD returned +29.99% while TMFG returned +4.56%. Year to date, SCHD is up 26.21% versus a gain of 6.03% for TMFG.

Over three years, SCHD compounded at +15.73% per year against +12.20% for TMFG. Across the full 5-year window we track, SCHD has the edge at +11.50% annualized vs +4.27%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TMFG has been the more volatile fund, with annualized monthly volatility of 17.3% 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 -33.7% for TMFG. 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while TMFG 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 0.27% for TMFG.

Holdings Overlap

1.7%overlap

SCHD and TMFG share 2 holdings out of 139 unique holdings combined, representing a 1.7% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SCHDWeight in TMFGDifference
FAST1.34%2.81%1.47%
WSO0.34%3.20%2.86%

Frequently Asked Questions

Which is cheaper, SCHD or TMFG?

SCHD has an expense ratio of 0.06% while TMFG 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 TMFG?

Over the past year SCHD returned +29.99% vs +4.56% for TMFG, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), SCHD annualized +11.50% vs +4.27% for TMFG. Past performance does not guarantee future results.

Which is riskier, SCHD or TMFG?

TMFG has been the more volatile fund at 17.3% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TMFG -33.7%.

Should I hold both SCHD and TMFG?

SCHD and TMFG have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and TMFG?

SCHD and TMFG share 2 common holdings with a 1.7% weight overlap. Combined, they hold 139 unique securities.

Which pays a higher dividend, SCHD or TMFG?

SCHD yields 3.31% while TMFG yields 0.27%, so SCHD currently pays the higher dividend yield.

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