CMI vs. SCHD

Last updated Jun 23, 2026

CMI (Cummins Inc.) is a stock, while SCHD (Schwab U.S. Dividend Equity ETF) is Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. Over the past 10 years, CMI returned 23.85%/yr vs 12.68%/yr for SCHD. A 0.63 correlation means they provide meaningful diversification when combined.

Performance

CMI vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Cummins Inc. (CMI) and Schwab U.S. Dividend Equity ETF (SCHD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CMI achieves a 42.94% return, which is significantly higher than SCHD's 17.24% return. Over the past 10 years, CMI has outperformed SCHD with an annualized return of 23.85%, while SCHD has yielded a comparatively lower 12.68% annualized return.

CMI

• 1D: 1.13%
• 1M: 13.35%
• YTD: 42.94%
• 6M: 40.51%
• 1Y: 134.37%
• 3Y*: 49.36%
• 5Y*: 27.91%
• 10Y*: 23.85%

SCHD

• 1D: 0.09%
• 1M: -2.86%
• YTD: 17.24%
• 6M: 16.44%
• 1Y: 24.06%
• 3Y*: 14.45%
• 5Y*: 8.77%
• 10Y*: 12.68%

*Multi-year figures are annualized to reflect compound growth (CAGR)

CMI vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
CMI Cummins Inc.	42.94%	49.36%	48.92%	1.72%	14.09%	-1.68%	30.50%	38.04%	-22.06%	32.74%
SCHD Schwab U.S. Dividend Equity ETF	17.24%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	20.85%

Correlation

The correlation between CMI and SCHD is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.37
Correlation (3Y) Calculated over the trailing 3-year period	0.50
Correlation (5Y) Calculated over the trailing 5-year period	0.59
Correlation (10Y) Calculated over the trailing 10-year period	0.64
Correlation (All Time) Calculated using the full available price history since Oct 20, 2011	0.63

Over the past year, the correlation between CMI and SCHD has dropped to 0.37 - well below their long-term average of 0.63, suggesting their price drivers have been diverging.

Return for Risk

CMI vs. SCHD — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

CMI

CMI Risk / Return Rank: 97
CMI Sharpe Ratio Rank: 98
CMI Sortino Ratio Rank: 96
CMI Omega Ratio Rank: 96
CMI Calmar Ratio Rank: 97
CMI Martin Ratio Rank: 98

SCHD

SCHD Risk / Return Rank: 76
SCHD Sharpe Ratio Rank: 70
SCHD Sortino Ratio Rank: 79
SCHD Omega Ratio Rank: 68
SCHD Calmar Ratio Rank: 90
SCHD Martin Ratio Rank: 71

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

CMI vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Cummins Inc. (CMI) and Schwab U.S. Dividend Equity ETF (SCHD). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	CMI	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	4.00	2.18	+1.81
Sortino ratio: Return per unit of downside risk	4.26	3.34	+0.92
Omega ratio: Gain probability vs. loss probability	1.59	1.39	+0.20
Calmar ratio: Return relative to maximum drawdown	8.88	5.24	+3.64
Martin ratio: Return relative to average drawdown	31.43	12.71	+18.72

CMI vs. SCHD - Sharpe Ratio Comparison

The current CMI Sharpe Ratio is 4.00, which is higher than the SCHD Sharpe Ratio of 2.18. The chart below compares the historical Sharpe Ratios of CMI and SCHD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

CMI vs. SCHD - Drawdown Comparison

The maximum CMI drawdown since its inception was -75.66%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for CMI and SCHD.

Drawdown Indicators

	CMI	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-75.66%	-33.37%	-42.29%
Max Drawdown (1Y) Largest decline over 1 year	-15.23%	-4.61%	-10.62%
Max Drawdown (3Y) Largest decline over 3 years	-30.48%	-16.13%	-14.35%
Max Drawdown (5Y) Largest decline over 5 years	-30.48%	-16.85%	-13.63%
Max Drawdown (10Y) Largest decline over 10 years	-44.05%	-33.37%	-10.68%
Current Drawdown Current decline from peak	0.00%	-2.86%	+2.86%
Average Drawdown Average peak-to-trough decline	-22.21%	-3.31%	-18.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.29%	1.90%	+2.39%

Volatility

CMI vs. SCHD - Volatility Comparison

Cummins Inc. (CMI) has a higher volatility of 13.62% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 3.58%. This indicates that CMI's price experiences larger fluctuations and is considered to be riskier than SCHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CMI	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.62%	3.58%	+10.04%
Volatility (6M) Calculated over the trailing 6-month period	28.32%	7.74%	+20.58%
Volatility (1Y) Calculated over the trailing 1-year period	33.89%	11.09%	+22.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.22%	14.36%	+13.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	28.37%	16.73%	+11.64%

Dividends

CMI vs. SCHD - Dividend Comparison

CMI's dividend yield for the trailing twelve months is around 1.10%, less than SCHD's 3.31% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CMI Cummins Inc.	1.10%	1.50%	2.01%	2.71%	2.49%	2.57%	2.33%	2.74%	3.32%	2.38%	2.93%	3.99%
SCHD Schwab U.S. Dividend Equity ETF	3.31%	3.82%	3.64%	3.49%	3.39%	2.78%	3.16%	2.98%	3.06%	2.63%	2.89%	2.97%

Frequently Asked Questions

Can I hold both CMI and SCHD in my portfolio?

CMI and SCHD have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CMI or SCHD?

CMI has higher volatility (13.62%) compared to SCHD (3.58%). In terms of maximum drawdown, CMI dropped -75.66% vs SCHD's -33.37%.

Which has better risk-adjusted returns?

CMI currently has the higher Sharpe Ratio (4.00 vs 2.18), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.