SCHD vs TMFS
Schwab US Dividend Equity ETF vs Motley Fool Small-Cap Growth ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | SCHD | TMFS | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.85% | |
| AUM | $108.7B | $60M | |
| Dividend Yield | 3.13% | 0.00% | |
| Holdings | 104 | 34 | |
| YTD Return | +26.54% | +7.47% | |
| 1Y Return | +30.90% | +7.97% | |
| 3Y Return (annualized) | +16.29% | +8.80% | |
| 5Y Return (annualized) | +9.65% | -0.20% | |
| Volatility (annualized) | 13.6% | 23.9% | |
| Max Drawdown | -33.4% | -48.8% | |
| Fund Family | Charles Schwab Asset Management | Motley Fool Asset Management | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Oct 30, 2018 |
SCHD vs TMFS Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Motley Fool Small-Cap Growth ETF (TMFS) is a ETF from Motley Fool Asset Management. Over the past year SCHD returned +30.90% while TMFS returned +7.97%. Year to date, SCHD is up 26.54% versus a gain of 7.47% for TMFS.
Over three years, SCHD compounded at +16.29% per year against +8.80% for TMFS; over five years the annualized figures are +9.65% and -0.20% respectively. Across the full 8-year window we track, SCHD has the edge at +11.51% annualized vs +9.38%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TMFS has been the more volatile fund, with annualized monthly volatility of 23.9% 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 -48.8% for TMFS. 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TMFS 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 3.13% against 0.00% for TMFS.
Holdings Overlap
SCHD and TMFS share 0 holdings out of 132 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 TMFS?
SCHD has an expense ratio of 0.06% while TMFS 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 TMFS?
Over the past year SCHD returned +30.90% vs +7.97% for TMFS, so SCHD leads on 1-year performance. Over the longest common window we track (8 years), SCHD annualized +11.51% vs +9.38% for TMFS. Past performance does not guarantee future results.
Which is riskier, SCHD or TMFS?
TMFS has been the more volatile fund at 23.9% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TMFS -48.8%.
Should I hold both SCHD and TMFS?
SCHD and TMFS have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TMFS?
SCHD and TMFS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 132 unique securities.
Which pays a higher dividend, SCHD or TMFS?
SCHD yields 3.13% while TMFS yields 0.00%, so SCHD currently pays the higher dividend yield.
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