SCHD vs SMCO

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

MetricSCHDSMCOWinner
Expense Ratio0.06%0.55%
AUM$103.7B$142M
Dividend Yield3.31%0.87%
Holdings10464
YTD Return+23.31%+12.54%
1Y Return+30.42%+18.55%
3Y Return (annualized)+14.66%-
5Y Return (annualized)+9.59%-
Volatility (annualized)13.6%15.9%
Max Drawdown-33.4%-22.7%
Fund FamilyCharles Schwab Asset ManagementHilton Capital Management
CategoryEquityEquity
InceptionOct 20, 2011Nov 28, 2023

SCHD vs SMCO Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Hilton Small-MidCap Opportunity ETF (SMCO) is a ETF from Hilton Capital Management. Over the past year SCHD returned +30.42% while SMCO returned +18.55%. Year to date, SCHD is up 23.31% versus a gain of 12.54% for SMCO.

Risk: Volatility and Drawdowns

SMCO has been the more volatile fund, with annualized monthly volatility of 15.9% 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 -22.7% for SMCO. 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 SMCO charges 0.55%. On a $10,000 position that is $6 vs $55 annually, a gap of $49 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.87% for SMCO.

Holdings Overlap

1.6%overlap

SCHD and SMCO share 4 holdings out of 159 unique holdings combined, representing a 1.6% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SCHDWeight in SMCODifference
DVN1.31%1.18%0.13%
MC0.13%1.56%1.43%
CWEN0.11%1.42%1.31%
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Frequently Asked Questions

Which is cheaper, SCHD or SMCO?

SCHD has an expense ratio of 0.06% while SMCO charges 0.55%. SCHD is the cheaper option. On a $10,000 investment, that is $49 per year of difference.

Which performed better, SCHD or SMCO?

Over the past year SCHD returned +30.42% vs +18.55% for SMCO, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), SCHD annualized +11.34% vs +17.75% for SMCO. Past performance does not guarantee future results.

Which is riskier, SCHD or SMCO?

SMCO has been the more volatile fund at 15.9% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs SMCO -22.7%.

Should I hold both SCHD and SMCO?

SCHD and SMCO 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 SMCO?

SCHD and SMCO share 4 common holdings with a 1.6% weight overlap. Combined, they hold 159 unique securities.

Which pays a higher dividend, SCHD or SMCO?

SCHD yields 3.31% while SMCO yields 0.87%, so SCHD currently pays the higher dividend yield.

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