SCHD vs USMF
Schwab US Dividend Equity ETF vs WisdomTree US Multifactor Fund
Which is better, SCHD or USMF?
Large Cap Value against Mid Cap Blend.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. USMF is less concentrated, with 17.7% of the fund in its ten largest positions against 41.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SCHD | USMF |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.28% |
| AUM | $112.1B | $279M |
| Dividend Yield | 3.00% | 1.33% |
| Holdings | 103 | 202 |
| YTD Return | +23.46%Best | +2.85% |
| 1Y Return | +27.20%Best | +0.92% |
| 3Y Return (annualized) | +15.41%Best | +11.43% |
| 5Y Return (annualized) | +10.16%Best | +7.36% |
| Volatility (annualized) | 15.8% | 14.9%Best |
| Max Drawdown | -33.4%Best | -36.2% |
| $10,000 over 5 years | $16,223Best | $14,263 |
| Top 10 Weight | 41.8% | 17.7%Best |
| Fund Family | Charles Schwab Asset Management | WisdomTree Investments |
| Category | Equity | Equity |
| Style | Large Cap Value | Mid Cap Blend |
| Inception | Oct 20, 2011 | Jun 29, 2017 |
Volatility and max drawdown are measured over the window both funds cover: Jun 29, 2017 to Sep 18, 2026 (9.2 years).
SCHD vs USMF growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 9.2 years both funds cover.
SCHD vs USMF Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and WisdomTree US Multifactor Fund (USMF) is an ETF from WisdomTree Investments. Over the past year SCHD returned +27.20% while USMF returned +0.92%. Year to date, SCHD is up 23.46% versus a gain of 2.85% for USMF.
Over three years, SCHD compounded at +15.41% per year against +11.43% for USMF; over five years the annualized figures are +10.16% and +7.36% respectively. Across the full 9-year window we track, SCHD has the edge at +11.48% annualized vs +9.94%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 15.8% compared with 14.9% for USMF. 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 -36.2% for USMF. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while USMF charges 0.28%. On a $10,000 position that is $6 vs $28 annually, a gap of $22 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 1.33% for USMF.
Holdings Overlap
39.1% of SCHD's money is in holdings USMF also owns. 9.9% of USMF's money is in holdings SCHD also owns.
The two portfolios partly overlap.
19 positions in common, counted across the 100 positions we hold weights for in SCHD and 197 in USMF, against full books of 103 and 202.
What only one of them owns
Our book lists 171 positions for USMF that do not appear in our book for SCHD (82.8% of the fund), and 80 for SCHD that do not appear in USMF (60.8%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in USMF | Difference |
|---|---|---|---|
| MRKMerck & Company Inc | 4.77% | 0.94% | 3.83% |
| AMGNAmgen Inc. | 4.70% | 0.61% | 4.09% |
| KOCoca Cola Co. | 4.17% | 0.63% | 3.54% |
| VZVerizon Communic | 3.97% | 0.70% | 3.27% |
| UNHUnitedhealth Group Incorporated | 3.82% | 0.67% | 3.15% |
| BMYBristol-Myers Squibb Co. | 3.33% | 0.65% | 2.68% |
| TXNTexas Instrument Inc | 3.13% | 0.52% | 2.61% |
| MOAltria Group Inc | 2.79% | 0.56% | 2.23% |
| TGTTarget Corp Common Stock Usd.0833 | 1.78% | 0.64% | 1.14% |
| EOGEog Resources Inc | 1.88% | 0.44% | 1.44% |
39.1% of SCHD is already inside USMF.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SCHD or USMF?
SCHD has an expense ratio of 0.06% while USMF charges 0.28%. SCHD is the cheaper option, by $22 a year on a $10,000 investment.
Which performed better, SCHD or USMF?
Over the past year SCHD returned +27.20% vs +0.92% for USMF, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), SCHD annualized +11.48% vs +9.94% for USMF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or USMF?
SCHD has been the more volatile fund at 15.8% annualized versus 14.9% for USMF. Worst drawdown: SCHD -33.4% vs USMF -36.2%.
Should I hold both SCHD and USMF?
SCHD and USMF have a monthly-return correlation of 0.87, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between SCHD and USMF?
39.1% of SCHD's money is in holdings USMF also owns. 9.9% of USMF's is in holdings SCHD also owns. They hold 19 positions in common, counted across the 100 positions we hold weights for in SCHD and 197 in USMF.
Which pays a higher dividend, SCHD or USMF?
SCHD yields 3.00% while USMF yields 1.33%, so SCHD currently pays the higher dividend yield.
Is USMF better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. USMF is less concentrated, with 17.7% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.