SCHD vs TWM

Quick Verdict

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

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricSCHDTWMWinner
Expense Ratio0.06%0.95%
AUM$103.7B$44M
Dividend Yield3.31%5.68%
Holdings10410
YTD Return+24.26%-33.17%
1Y Return+31.38%-48.45%
3Y Return (annualized)+15.08%-58.58%
5Y Return (annualized)+9.72%-41.59%
Volatility (annualized)13.6%43.0%
Max Drawdown-33.4%-100.0%
Fund FamilyCharles Schwab Asset ManagementProShares
CategoryEquityAlternative
InceptionOct 20, 2011Jan 23, 2007

SCHD vs TWM Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and ProShares UltraShort Russell2000 (TWM) is a ETF from ProShares. Over the past year SCHD returned +31.38% while TWM returned -48.45%. Year to date, SCHD is up 24.26% versus a loss of 33.17% for TWM.

Over three years, SCHD compounded at +15.08% per year against -58.58% for TWM; over five years the annualized figures are +9.72% and -41.59% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs -35.17%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TWM has been the more volatile fund, with annualized monthly volatility of 43.0% 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 -100.0% for TWM. 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 -0.70. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while TWM charges 0.95%. On a $10,000 position that is $6 vs $95 annually, a gap of $89 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 5.68% for TWM.

Holdings Overlap

0.0%overlap

SCHD and TWM share 0 holdings out of 101 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 TWM?

SCHD has an expense ratio of 0.06% while TWM charges 0.95%. SCHD is the cheaper option. On a $10,000 investment, that is $89 per year of difference.

Which performed better, SCHD or TWM?

Over the past year SCHD returned +31.38% vs -48.45% for TWM, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs -35.17% for TWM. Past performance does not guarantee future results.

Which is riskier, SCHD or TWM?

TWM has been the more volatile fund at 43.0% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TWM -100.0%.

Should I hold both SCHD and TWM?

SCHD and TWM have a monthly-return correlation of -0.70, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and TWM?

SCHD and TWM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 101 unique securities.

Which pays a higher dividend, SCHD or TWM?

SCHD yields 3.31% while TWM yields 5.68%, so TWM currently pays the higher dividend yield.

Get Full ETF Analytics

Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.

X-ray your whole portfolio
$99/yr7-day refund. ETFs, mutual funds, 401(k)s.
Get Pro →