SCHD vs SPMB

Quick Verdict

SPMB has a lower expense ratio. SCHD delivered stronger 1-year returns. SPMB offers more diversification with 2556 holdings.

Lower Fees: SPMBHigher Returns: SCHDMore Diversified: SPMB

Side-by-Side Comparison

MetricSCHDSPMBWinner
Expense Ratio0.06%0.04%
AUM$103.7B$7.0B
Dividend Yield3.31%4.05%
Holdings1042,661
YTD Return+22.69%-0.24%
1Y Return+30.94%+4.10%
3Y Return (annualized)+14.20%+4.32%
5Y Return (annualized)+9.59%-0.01%
Volatility (annualized)13.7%4.5%
Max Drawdown-33.4%-22.8%
Fund FamilyCharles Schwab Asset ManagementState Street Investment Management
CategoryEquityFixed Income
InceptionOct 20, 2011Jan 15, 2009

SCHD vs SPMB Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and State Street SPDR Portfolio Mortgage Backed Bond ETF (SPMB) is a ETF from State Street Investment Management. Over the past year SCHD returned +30.94% while SPMB returned +4.10%. Year to date, SCHD is up 22.69% versus a loss of 0.24% for SPMB.

Over three years, SCHD compounded at +14.20% per year against +4.32% for SPMB; over five years the annualized figures are +9.59% and -0.01% respectively. Across the full 15-year window we track, SCHD has the edge at +11.31% annualized vs +0.08%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 4.5% for SPMB. 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 -22.8% for SPMB. 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 0.29. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while SPMB charges 0.04%. On a $10,000 position that is $6 vs $4 annually, a gap of $2 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 4.05% for SPMB.

Holdings Overlap

0.0%overlap

SCHD and SPMB share 0 holdings out of 2656 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 SPMB?

SCHD has an expense ratio of 0.06% while SPMB charges 0.04%. SPMB is the cheaper option. On a $10,000 investment, that is $2 per year of difference.

Which performed better, SCHD or SPMB?

Over the past year SCHD returned +30.94% vs +4.10% for SPMB, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.31% vs +0.08% for SPMB. Past performance does not guarantee future results.

Which is riskier, SCHD or SPMB?

SCHD has been the more volatile fund at 13.7% annualized versus 4.5% for SPMB. Worst drawdown: SCHD -33.4% vs SPMB -22.8%.

Should I hold both SCHD and SPMB?

SCHD and SPMB have a monthly-return correlation of 0.29, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and SPMB?

SCHD and SPMB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2656 unique securities.

Which pays a higher dividend, SCHD or SPMB?

SCHD yields 3.31% while SPMB yields 4.05%, so SPMB currently pays the higher dividend yield.

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