SCHD vs USMF

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. USMF offers more diversification with 197 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: USMF

Side-by-Side Comparison

MetricSCHDUSMFWinner
Expense Ratio0.06%0.28%
AUM$103.7B$298M
Dividend Yield3.31%1.28%
Holdings104200
YTD Return+24.26%+5.39%
1Y Return+31.38%+7.26%
3Y Return (annualized)+15.08%+12.16%
5Y Return (annualized)+9.72%+7.41%
Volatility (annualized)13.6%14.9%
Max Drawdown-33.4%-36.2%
Fund FamilyCharles Schwab Asset ManagementWisdomTree Investments
CategoryEquityEquity
InceptionOct 20, 2011Jun 29, 2017

SCHD vs USMF Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and WisdomTree US Multifactor Fund (USMF) is a ETF from WisdomTree Investments. Over the past year SCHD returned +31.38% while USMF returned +7.26%. Year to date, SCHD is up 24.26% versus a gain of 5.39% for USMF.

Over three years, SCHD compounded at +15.08% per year against +12.16% for USMF; over five years the annualized figures are +9.72% and +7.41% respectively. Across the full 9-year window we track, SCHD has the edge at +11.39% annualized vs +10.37%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

USMF has been the more volatile fund, with annualized monthly volatility of 14.9% 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 -36.2% for USMF. 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 0.88. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

SCHD charges 0.06% per year while USMF charges 0.28%. On a $10,000 position that is $6 vs $28 annually, a gap of $22 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 1.28% for USMF.

Holdings Overlap

8.1%overlap

SCHD and USMF share 21 holdings out of 276 unique holdings combined, representing a 8.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SCHDWeight in USMFDifference
MRK4.32%0.39%3.93%
VZ3.68%1.01%2.67%
AMGN4.25%0.36%3.89%
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Frequently Asked Questions

Which is cheaper, SCHD or USMF?

SCHD has an expense ratio of 0.06% while USMF charges 0.28%. SCHD is the cheaper option. On a $10,000 investment, that is $22 per year of difference.

Which performed better, SCHD or USMF?

Over the past year SCHD returned +31.38% vs +7.26% for USMF, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), SCHD annualized +11.39% vs +10.37% for USMF. Past performance does not guarantee future results.

Which is riskier, SCHD or USMF?

USMF has been the more volatile fund at 14.9% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs USMF -36.2%.

Should I hold both SCHD and USMF?

SCHD and USMF have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and USMF?

SCHD and USMF share 21 common holdings with a 8.1% weight overlap. Combined, they hold 276 unique securities.

Which pays a higher dividend, SCHD or USMF?

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

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