SCHD vs SMOT

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SMOT offers more diversification with 110 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SMOT

Side-by-Side Comparison

MetricSCHDSMOTWinner
Expense Ratio0.06%0.49%
AUM$103.7B$328M
Dividend Yield3.31%1.28%
Holdings104116
YTD Return+23.53%+10.65%
1Y Return+30.95%+14.58%
3Y Return (annualized)+14.72%+10.50%
5Y Return (annualized)+9.56%-
Volatility (annualized)13.6%17.1%
Max Drawdown-33.4%-23.4%
Fund FamilyCharles Schwab Asset ManagementVanEck
CategoryEquityEquity
InceptionOct 20, 2011Oct 4, 2022

SCHD vs SMOT Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and VanEck Morningstar SMID Moat ETF (SMOT) is a ETF from VanEck. Over the past year SCHD returned +30.95% while SMOT returned +14.58%. Year to date, SCHD is up 23.53% versus a gain of 10.65% for SMOT.

Over three years, SCHD compounded at +14.72% per year against +10.50% for SMOT. Across the full 4-year window we track, SMOT has the edge at +13.07% annualized vs +11.35%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SMOT has been the more volatile fund, with annualized monthly volatility of 17.1% 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 -23.4% for SMOT. 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 0.76. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

SCHD charges 0.06% per year while SMOT charges 0.49%. On a $10,000 position that is $6 vs $49 annually, a gap of $43 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 1.28% for SMOT.

Holdings Overlap

3.5%overlap

SCHD and SMOT share 5 holdings out of 205 unique holdings combined, representing a 3.5% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SCHDWeight in SMOTDifference
DVN1.31%1.28%0.03%
SLB:CW1.80%0.61%1.19%
TROW0.65%0.81%0.16%
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Frequently Asked Questions

Which is cheaper, SCHD or SMOT?

SCHD has an expense ratio of 0.06% while SMOT charges 0.49%. SCHD is the cheaper option. On a $10,000 investment, that is $43 per year of difference.

Which performed better, SCHD or SMOT?

Over the past year SCHD returned +30.95% vs +14.58% for SMOT, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), SCHD annualized +11.35% vs +13.07% for SMOT. Past performance does not guarantee future results.

Which is riskier, SCHD or SMOT?

SMOT has been the more volatile fund at 17.1% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs SMOT -23.4%.

Should I hold both SCHD and SMOT?

SCHD and SMOT have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and SMOT?

SCHD and SMOT share 5 common holdings with a 3.5% weight overlap. Combined, they hold 205 unique securities.

Which pays a higher dividend, SCHD or SMOT?

SCHD yields 3.31% while SMOT yields 1.28%, so SCHD currently pays the higher dividend yield.

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