SCHD vs TSMY
Schwab US Dividend Equity ETF vs YieldMax TSM Option Income Strategy ETF
Quick Verdict
SCHD has a lower expense ratio. TSMY delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | TSMY | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 1.01% | |
| AUM | $103.7B | $103M | |
| Dividend Yield | 3.31% | 48.83% | |
| Holdings | 104 | 19 | |
| YTD Return | +25.62% | +29.05% | |
| 1Y Return | +32.62% | +60.46% | |
| 3Y Return (annualized) | +15.58% | - | |
| 5Y Return (annualized) | +9.63% | - | |
| Volatility (annualized) | 13.6% | 27.5% | |
| Max Drawdown | -33.4% | -31.1% | |
| Fund Family | Charles Schwab Asset Management | YieldMax ETF | |
| Category | Equity | Alternative | |
| Inception | Oct 20, 2011 | Aug 20, 2024 |
SCHD vs TSMY Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and YieldMax TSM Option Income Strategy ETF (TSMY) is a ETF from YieldMax ETF. Over the past year SCHD returned +32.62% while TSMY returned +60.46%. Year to date, SCHD is up 25.62% versus a gain of 29.05% for TSMY.
Risk: Volatility and Drawdowns
TSMY has been the more volatile fund, with annualized monthly volatility of 27.5% 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 -31.1% for TSMY. 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 -0.04. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TSMY charges 1.01%. On a $10,000 position that is $6 vs $101 annually, a gap of $95 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 48.83% for TSMY.
Holdings Overlap
SCHD and TSMY share 0 holdings out of 103 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 TSMY?
SCHD has an expense ratio of 0.06% while TSMY charges 1.01%. SCHD is the cheaper option. On a $10,000 investment, that is $95 per year of difference.
Which performed better, SCHD or TSMY?
Over the past year SCHD returned +32.62% vs +60.46% for TSMY, so TSMY leads on 1-year performance. Over the longest common window we track (2 years), SCHD annualized +11.47% vs +43.42% for TSMY. Past performance does not guarantee future results.
Which is riskier, SCHD or TSMY?
TSMY has been the more volatile fund at 27.5% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TSMY -31.1%.
Should I hold both SCHD and TSMY?
SCHD and TSMY have a monthly-return correlation of -0.04, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TSMY?
SCHD and TSMY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, SCHD or TSMY?
SCHD yields 3.31% while TSMY yields 48.83%, so TSMY currently pays the higher dividend yield.
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