SCHD vs UMMA

Quick Verdict

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

Lower Fees: SCHDHigher Returns: UMMAMore Diversified: SCHD

Side-by-Side Comparison

MetricSCHDUMMAWinner
Expense Ratio0.06%0.65%
AUM$103.7B$280M
Dividend Yield3.31%0.92%
Holdings104102
YTD Return+25.33%+22.84%
1Y Return+32.31%+44.16%
3Y Return (annualized)+15.40%+21.15%
5Y Return (annualized)+9.70%-
Volatility (annualized)13.6%20.8%
Max Drawdown-33.4%-34.2%
Fund FamilyCharles Schwab Asset ManagementWahed Invest
CategoryEquityEquity
InceptionOct 20, 2011Jan 6, 2022

SCHD vs UMMA Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Wahed Dow Jones Islamic World ETF (UMMA) is a ETF from Wahed Invest. Over the past year SCHD returned +32.31% while UMMA returned +44.16%. Year to date, SCHD is up 25.33% versus a gain of 22.84% for UMMA.

Over three years, SCHD compounded at +15.40% per year against +21.15% for UMMA. Across the full 5-year window we track, SCHD has the edge at +11.45% annualized vs +10.02%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

UMMA has been the more volatile fund, with annualized monthly volatility of 20.8% 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 -34.2% for UMMA. 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while UMMA charges 0.65%. On a $10,000 position that is $6 vs $65 annually, a gap of $59 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.92% for UMMA.

Holdings Overlap

0.0%overlap

SCHD and UMMA share 0 holdings out of 192 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 UMMA?

SCHD has an expense ratio of 0.06% while UMMA charges 0.65%. SCHD is the cheaper option. On a $10,000 investment, that is $59 per year of difference.

Which performed better, SCHD or UMMA?

Over the past year SCHD returned +32.31% vs +44.16% for UMMA, so UMMA leads on 1-year performance. Over the longest common window we track (5 years), SCHD annualized +11.45% vs +10.02% for UMMA. Past performance does not guarantee future results.

Which is riskier, SCHD or UMMA?

UMMA has been the more volatile fund at 20.8% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs UMMA -34.2%.

Should I hold both SCHD and UMMA?

SCHD and UMMA have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and UMMA?

SCHD and UMMA share 0 common holdings with a 0.0% weight overlap. Combined, they hold 192 unique securities.

Which pays a higher dividend, SCHD or UMMA?

SCHD yields 3.31% while UMMA yields 0.92%, so SCHD currently pays the higher dividend yield.

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