SCHD vs TRFM
Schwab US Dividend Equity ETF vs AAM Transformers ETF
Quick Verdict
SCHD has a lower expense ratio. TRFM delivered stronger 1-year returns. TRFM offers more diversification with 245 holdings.
Side-by-Side Comparison
| Metric | SCHD | TRFM | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.49% | |
| AUM | $103.7B | $244M | |
| Dividend Yield | 3.31% | 0.13% | |
| Holdings | 104 | 246 | |
| YTD Return | +24.26% | +26.12% | |
| 1Y Return | +31.38% | +39.25% | |
| 3Y Return (annualized) | +15.08% | +28.99% | |
| 5Y Return (annualized) | +9.72% | - | |
| Volatility (annualized) | 13.6% | 24.2% | |
| Max Drawdown | -33.4% | -28.4% | |
| Fund Family | Charles Schwab Asset Management | Advisors Asset Management, Inc. | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Jul 11, 2022 |
SCHD vs TRFM Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and AAM Transformers ETF (TRFM) is a ETF from Advisors Asset Management, Inc.. Over the past year SCHD returned +31.38% while TRFM returned +39.25%. Year to date, SCHD is up 24.26% versus a gain of 26.12% for TRFM.
Over three years, SCHD compounded at +15.08% per year against +28.99% for TRFM. Across the full 4-year window we track, TRFM has the edge at +26.41% annualized vs +11.39%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TRFM has been the more volatile fund, with annualized monthly volatility of 24.2% 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 -28.4% for TRFM. 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TRFM charges 0.49%. On a $10,000 position that is $6 vs $49 annually, a gap of $43 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.13% for TRFM.
Holdings Overlap
SCHD and TRFM share 1 holdings out of 344 unique holdings combined, representing a 0.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in TRFM | Difference |
|---|---|---|---|
| TXN | 3.70% | 0.83% | 2.87% |
Frequently Asked Questions
Which is cheaper, SCHD or TRFM?
SCHD has an expense ratio of 0.06% while TRFM charges 0.49%. SCHD is the cheaper option. On a $10,000 investment, that is $43 per year of difference.
Which performed better, SCHD or TRFM?
Over the past year SCHD returned +31.38% vs +39.25% for TRFM, so TRFM leads on 1-year performance. Over the longest common window we track (4 years), SCHD annualized +11.39% vs +26.41% for TRFM. Past performance does not guarantee future results.
Which is riskier, SCHD or TRFM?
TRFM has been the more volatile fund at 24.2% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TRFM -28.4%.
Should I hold both SCHD and TRFM?
SCHD and TRFM have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TRFM?
SCHD and TRFM share 1 common holdings with a 0.8% weight overlap. Combined, they hold 344 unique securities.
Which pays a higher dividend, SCHD or TRFM?
SCHD yields 3.31% while TRFM yields 0.13%, so SCHD currently pays the higher dividend yield.
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