HNST vs. SCHD

Last updated Jun 24, 2026

HNST (The Honest Company, 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 5 years, HNST returned -25.32%/yr vs 8.71%/yr for SCHD. At a 0.35 correlation, their price movements are largely independent.

Performance

HNST vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in The Honest Company, Inc. (HNST) 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, HNST achieves a 39.53% return, which is significantly higher than SCHD's 17.72% return.

HNST

• 1D: 3.45%
• 1M: 5.57%
• YTD: 39.53%
• 6M: 33.33%
• 1Y: -25.77%
• 3Y*: 27.67%
• 5Y*: -25.32%
• 10Y*: —

SCHD

• 1D: 0.41%
• 1M: -2.47%
• YTD: 17.72%
• 6M: 17.25%
• 1Y: 24.56%
• 3Y*: 14.60%
• 5Y*: 8.71%
• 10Y*: 12.72%

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

HNST vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
HNST The Honest Company, Inc.	39.53%	-62.77%	110.00%	9.63%	-62.79%	-49.44%
SCHD Schwab U.S. Dividend Equity ETF	17.72%	4.34%	11.66%	4.54%	-3.26%	9.86%

Correlation

The correlation between HNST and SCHD is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.23
Correlation (3Y) Calculated over the trailing 3-year period	0.30
Correlation (5Y) Calculated over the trailing 5-year period	0.36
Correlation (All Time) Calculated using the full available price history since May 4, 2021	0.35

The correlation between HNST and SCHD shifts across timeframes, from 0.23 (1 year) to 0.36 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

HNST vs. SCHD — Risk / Return Rank

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

HNST

HNST Risk / Return Rank: 27
HNST Sharpe Ratio Rank: 25
HNST Sortino Ratio Rank: 27
HNST Omega Ratio Rank: 27
HNST Calmar Ratio Rank: 28
HNST Martin Ratio Rank: 30

SCHD

SCHD Risk / Return Rank: 77
SCHD Sharpe Ratio Rank: 72
SCHD Sortino Ratio Rank: 80
SCHD Omega Ratio Rank: 70
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.

HNST vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for The Honest Company, Inc. (HNST) 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.

	HNST	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	-0.40	2.23	-2.63
Sortino ratio: Return per unit of downside risk	-0.17	3.40	-3.57
Omega ratio: Gain probability vs. loss probability	0.98	1.40	-0.42
Calmar ratio: Return relative to maximum drawdown	-0.44	5.35	-5.78
Martin ratio: Return relative to average drawdown	-0.68	12.94	-13.62

HNST vs. SCHD - Sharpe Ratio Comparison

The current HNST Sharpe Ratio is -0.40, which is lower than the SCHD Sharpe Ratio of 2.23. The chart below compares the historical Sharpe Ratios of HNST 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

HNST vs. SCHD - Drawdown Comparison

The maximum HNST drawdown since its inception was -95.22%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for HNST and SCHD.

Drawdown Indicators

	HNST	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-95.22%	-33.37%	-61.85%
Max Drawdown (1Y) Largest decline over 1 year	-59.22%	-4.61%	-54.61%
Max Drawdown (3Y) Largest decline over 3 years	-75.50%	-16.13%	-59.37%
Max Drawdown (5Y) Largest decline over 5 years	-93.30%	-16.85%	-76.45%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.37%	—
Current Drawdown Current decline from peak	-84.35%	-2.47%	-81.88%
Average Drawdown Average peak-to-trough decline	-79.78%	-3.31%	-76.47%
Ulcer Index Depth and duration of drawdowns from previous peaks	37.82%	1.90%	+35.92%

Volatility

HNST vs. SCHD - Volatility Comparison

The Honest Company, Inc. (HNST) has a higher volatility of 16.36% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 3.58%. This indicates that HNST'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

	HNST	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	16.36%	3.58%	+12.78%
Volatility (6M) Calculated over the trailing 6-month period	40.25%	7.73%	+32.52%
Volatility (1Y) Calculated over the trailing 1-year period	64.87%	11.07%	+53.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	72.08%	14.36%	+57.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	75.28%	16.71%	+58.57%

Dividends

HNST vs. SCHD - Dividend Comparison

HNST has not paid dividends to shareholders, while SCHD's dividend yield for the trailing twelve months is around 3.30%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HNST The Honest Company, Inc.	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SCHD Schwab U.S. Dividend Equity ETF	3.30%	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 HNST and SCHD in my portfolio?

HNST and SCHD have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HNST or SCHD?

HNST has higher volatility (16.36%) compared to SCHD (3.58%). In terms of maximum drawdown, HNST dropped -95.22% vs SCHD's -33.37%.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.23 vs -0.40), 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.