SCHD vs XSMO
Schwab US Dividend Equity ETF vs Invesco S&P SmallCap Momentum ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. XSMO offers more diversification with 111 holdings.
Side-by-Side Comparison
| Metric | SCHD | XSMO | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.36% | |
| AUM | $103.7B | $3.0B | |
| Dividend Yield | 3.31% | 0.51% | |
| Holdings | 104 | 115 | |
| YTD Return | +26.21% | +22.11% | |
| 1Y Return | +29.99% | +24.46% | |
| 3Y Return (annualized) | +15.73% | +21.86% | |
| 5Y Return (annualized) | +9.67% | +11.68% | |
| Volatility (annualized) | 13.6% | 275.0% | |
| Max Drawdown | -33.4% | -78.8% | |
| Fund Family | Charles Schwab Asset Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Mar 3, 2005 |
SCHD vs XSMO Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Invesco S&P SmallCap Momentum ETF (XSMO) is a ETF from Invesco (US). Over the past year SCHD returned +29.99% while XSMO returned +24.46%. Year to date, SCHD is up 26.21% versus a gain of 22.11% for XSMO.
Over three years, SCHD compounded at +15.73% per year against +21.86% for XSMO; over five years the annualized figures are +9.67% and +11.68% respectively. Across the full 15-year window we track, XSMO has the edge at +14.93% annualized vs +11.50%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XSMO has been the more volatile fund, with annualized monthly volatility of 275.0% 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 -78.8% for XSMO. 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while XSMO charges 0.36%. On a $10,000 position that is $6 vs $36 annually, a gap of $30 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.51% for XSMO.
Holdings Overlap
SCHD and XSMO share 1 holdings out of 210 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in XSMO | Difference |
|---|---|---|---|
| CWEN | 0.11% | 0.83% | 0.72% |
Frequently Asked Questions
Which is cheaper, SCHD or XSMO?
SCHD has an expense ratio of 0.06% while XSMO charges 0.36%. SCHD is the cheaper option. On a $10,000 investment, that is $30 per year of difference.
Which performed better, SCHD or XSMO?
Over the past year SCHD returned +29.99% vs +24.46% for XSMO, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.50% vs +14.93% for XSMO. Past performance does not guarantee future results.
Which is riskier, SCHD or XSMO?
XSMO has been the more volatile fund at 275.0% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs XSMO -78.8%.
Should I hold both SCHD and XSMO?
SCHD and XSMO have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and XSMO?
SCHD and XSMO share 1 common holdings with a 0.1% weight overlap. Combined, they hold 210 unique securities.
Which pays a higher dividend, SCHD or XSMO?
SCHD yields 3.31% while XSMO yields 0.51%, so SCHD currently pays the higher dividend yield.
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