SCHD vs TMFE
SCHD vs TMFE
Schwab US Dividend Equity ETF vs Motley Fool Capital Efficiency 100 Index ETF
Quick Verdict
SCHD has a lower expense ratio. TMFE delivered stronger 1-year returns. TMFE offers more diversification with 101 holdings.
Side-by-Side Comparison
| Metric | SCHD | TMFE | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.50% | |
| AUM | $103.7B | $77M | |
| Dividend Yield | 3.31% | 0.18% | |
| Holdings | 104 | 102 | |
| YTD Return | +24.08% | +34.98% | |
| 1Y Return | +31.88% | +39.12% | |
| 3Y Return (annualized) | +14.92% | +12.14% | |
| 5Y Return (annualized) | +9.85% | - | |
| Volatility (annualized) | 13.6% | 20.5% | |
| Max Drawdown | -33.4% | -31.1% | |
| Fund Family | Charles Schwab Asset Management | Motley Fool Asset Management | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Dec 30, 2021 |
SCHD vs TMFE Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Motley Fool Capital Efficiency 100 Index ETF (TMFE) is a ETF from Motley Fool Asset Management. Over the past year SCHD returned +31.88% while TMFE returned +39.12%. Year to date, SCHD is up 24.08% versus a gain of 34.98% for TMFE.
Over three years, SCHD compounded at +14.92% per year against +12.14% for TMFE. Across the full 3-year window we track, TMFE has the edge at +12.14% annualized vs +11.39%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TMFE has been the more volatile fund, with annualized monthly volatility of 20.5% 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 -31.1% for TMFE. 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while TMFE charges 0.50%. On a $10,000 position that is $6 vs $50 annually, a gap of $44 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.18% for TMFE.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, SCHD or TMFE?
SCHD has an expense ratio of 0.06% while TMFE charges 0.50%. SCHD is the cheaper option. On a $10,000 investment, that is $44 per year of difference.
Which performed better, SCHD or TMFE?
Over the past year SCHD returned +31.88% vs +39.12% for TMFE, so TMFE leads on 1-year performance. Over the longest common window we track (3 years), SCHD annualized +11.39% vs +12.14% for TMFE. Past performance does not guarantee future results.
Which is riskier, SCHD or TMFE?
TMFE has been the more volatile fund at 20.5% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TMFE -31.1%.
Should I hold both SCHD and TMFE?
SCHD and TMFE have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TMFE?
SCHD and TMFE share 2 common holdings with a 1.6% weight overlap. Combined, they hold 199 unique securities.
Which pays a higher dividend, SCHD or TMFE?
SCHD yields 3.31% while TMFE yields 0.18%, so SCHD currently pays the higher dividend yield.
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