SCHD vs TMFX
SCHD vs TMFX
Schwab US Dividend Equity ETF vs Motley Fool Next Index ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. TMFX offers more diversification with 190 holdings.
Side-by-Side Comparison
| Metric | SCHD | TMFX | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.50% | |
| AUM | $103.7B | $33M | |
| Dividend Yield | 3.31% | 0.05% | |
| Holdings | 104 | 191 | |
| YTD Return | +24.26% | +11.42% | |
| 1Y Return | +31.38% | +16.46% | |
| 3Y Return (annualized) | +15.08% | +15.42% | |
| 5Y Return (annualized) | +9.72% | - | |
| Volatility (annualized) | 13.6% | 20.3% | |
| Max Drawdown | -33.4% | -34.3% | |
| Fund Family | Charles Schwab Asset Management | Motley Fool Asset Management | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Dec 30, 2021 |
SCHD vs TMFX Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Motley Fool Next Index ETF (TMFX) is a ETF from Motley Fool Asset Management. Over the past year SCHD returned +31.38% while TMFX returned +16.46%. Year to date, SCHD is up 24.26% versus a gain of 11.42% for TMFX.
Over three years, SCHD compounded at +15.08% per year against +15.42% for TMFX. Across the full 5-year window we track, SCHD has the edge at +11.39% annualized vs +4.40%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TMFX has been the more volatile fund, with annualized monthly volatility of 20.3% 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 -34.3% for TMFX. 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TMFX 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 3.31% against 0.05% for TMFX.
Holdings Overlap
SCHD and TMFX share 3 holdings out of 287 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or TMFX?
SCHD has an expense ratio of 0.06% while TMFX charges 0.50%. SCHD is the cheaper option. On a $10,000 investment, that is $44 per year of difference.
Which performed better, SCHD or TMFX?
Over the past year SCHD returned +31.38% vs +16.46% for TMFX, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), SCHD annualized +11.39% vs +4.40% for TMFX. Past performance does not guarantee future results.
Which is riskier, SCHD or TMFX?
TMFX has been the more volatile fund at 20.3% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TMFX -34.3%.
Should I hold both SCHD and TMFX?
SCHD and TMFX have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TMFX?
SCHD and TMFX share 3 common holdings with a 0.5% weight overlap. Combined, they hold 287 unique securities.
Which pays a higher dividend, SCHD or TMFX?
SCHD yields 3.31% while TMFX yields 0.05%, so SCHD currently pays the higher dividend yield.
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