SCHD vs TSMY

Quick Verdict

SCHD has a lower expense ratio. TSMY delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: TSMYMore Diversified: SCHD

Side-by-Side Comparison

MetricSCHDTSMYWinner
Expense Ratio0.06%1.01%
AUM$103.7B$103M
Dividend Yield3.31%48.83%
Holdings10419
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 FamilyCharles Schwab Asset ManagementYieldMax ETF
CategoryEquityAlternative
InceptionOct 20, 2011Aug 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

0.0%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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