MTUM vs. SCHD

Last updated Aug 4, 2026

MTUM (iShares MSCI USA Momentum Factor ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - MTUM is a Momentum fund tracking the MSCI USA Momentum SR Variant Index, while SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. Both are passively managed. Over the past 10 years, MTUM returned 15.78%/yr vs 12.70%/yr for SCHD. Their 0.62 correlation means they have sometimes moved together and sometimes differently. MTUM charges 0.15%/yr vs 0.06%/yr for SCHD.

Performance

MTUM vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI USA Momentum Factor ETF (MTUM) 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, MTUM achieves a 20.80% return, which is significantly lower than SCHD's 24.36% return. Over the past 10 years, MTUM has outperformed SCHD with an annualized return of 15.78%, while SCHD has yielded a comparatively lower 12.70% annualized return.

MTUM

• 1D: 0.73%
• 1M: -4.66%
• 6M: 17.04%
• YTD: 20.80%
• 1Y: 27.28%
• 3Y*: 28.96%
• 5Y*: 12.59%
• 10Y*: 15.78%
• ALL TIME*: 15.67%

SCHD

• 1D: 0.27%
• 1M: 3.61%
• 6M: 13.71%
• YTD: 24.36%
• 1Y: 31.89%
• 3Y*: 14.88%
• 5Y*: 9.66%
• 10Y*: 12.70%
• ALL TIME*: 13.40%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
MTUM iShares MSCI USA Momentum Factor ETF	$578.91M	$630.18M	$548.65M
SCHD Schwab U.S. Dividend Equity ETF	$806.58M	$724.91M	$690.35M

MTUM vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MTUM iShares MSCI USA Momentum Factor ETF	20.80%	22.15%	32.89%	9.15%	-18.27%	13.36%	29.86%	27.25%	-1.67%	37.50%
SCHD Schwab U.S. Dividend Equity ETF	24.36%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	20.85%

Correlation

The correlation between MTUM and SCHD is 0.07, meaning there was essentially no consistent relationship between their historical price movements. Each responded to its own set of market drivers.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.07
Correlation (3Y) Balances recent behavior with more history.	0.32
Correlation (5Y) Shows whether the relationship held over a longer period.	0.51
Correlation (10Y) Provides a long-term view across more market conditions.	0.57
Correlation (All Time) Calculated using the full available price history since Apr 18, 2013	0.62

Over the past year, the correlation between MTUM and SCHD has dropped to 0.07 - well below their long-term average of 0.62, suggesting their price drivers have been diverging.

MTUM vs. SCHD - Sectors Allocation Comparison

Sectors	MTUM	SCHD
Technology	48.3%	12.7%
Industrials	12.1%	7.8%
Energy	11.5%	14.1%
Financial Services	5.2%	9.9%
Communication Services	4.4%	6.2%
Healthcare	4.2%	20.8%
Utilities	3.7%	0.1%
Consumer Defensive	3.7%	20.6%
Consumer Cyclical	3.0%	7.7%
Basic Materials	2.2%	1.2%
Real Estate	1.5%	-

Return for Risk

MTUM vs. SCHD — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

MTUM

MTUM Risk / Return Rank: 44
MTUM Sharpe Ratio Rank: 43
MTUM Sortino Ratio Rank: 42
MTUM Omega Ratio Rank: 43
MTUM Calmar Ratio Rank: 43
MTUM Martin Ratio Rank: 51

SCHD

SCHD Risk / Return Rank: 95
SCHD Sharpe Ratio Rank: 96
SCHD Sortino Ratio Rank: 96
SCHD Omega Ratio Rank: 94
SCHD Calmar Ratio Rank: 97
SCHD Martin Ratio Rank: 93

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

MTUM vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Momentum Factor ETF (MTUM) 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.

	MTUM	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	1.07	2.90	-1.83
Sortino ratio: Return per unit of downside risk	1.55	4.49	-2.95
Omega ratio: Gain probability vs. loss probability	1.21	1.52	-0.32
Calmar ratio: Return relative to maximum drawdown	1.52	6.94	-5.42
Martin ratio: Return relative to average drawdown	6.14	17.53	-11.39

MTUM vs. SCHD - Sharpe Ratio Comparison

The current MTUM Sharpe Ratio is 1.07, which is lower than the SCHD Sharpe Ratio of 2.90. The chart below compares the historical Sharpe Ratios of MTUM 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

MTUM vs. SCHD - Drawdown Comparison

The maximum MTUM drawdown since its inception was -34.08%, roughly equal to the maximum SCHD drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for MTUM and SCHD.

Drawdown Indicators

	MTUM	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-34.08%	-33.37%	-0.71%
Max Drawdown (1Y) Largest decline over 1 year	-17.99%	-4.61%	-13.38%
Max Drawdown (3Y) Largest decline over 3 years	-20.99%	-16.13%	-4.86%
Max Drawdown (5Y) Largest decline over 5 years	-32.28%	-16.85%	-15.43%
Max Drawdown (10Y) Largest decline over 10 years	-34.08%	-33.37%	-0.71%
Current Drawdown Current decline from peak	-12.58%	-0.97%	-11.61%
Average Drawdown Average peak-to-trough decline	-6.22%	-3.29%	-2.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.46%	1.82%	+2.64%

Volatility

MTUM vs. SCHD - Volatility Comparison

iShares MSCI USA Momentum Factor ETF (MTUM) has a higher volatility of 10.76% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 3.82%. This indicates that MTUM'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

	MTUM	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.76%	3.82%	+6.94%
Volatility (6M) Calculated over the trailing 6-month period	23.24%	7.99%	+15.25%
Volatility (1Y) Calculated over the trailing 1-year period	25.57%	11.06%	+14.51%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.89%	14.39%	+7.50%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.73%	16.73%	+5.00%

MTUM vs. SCHD - Expense Ratio Comparison

MTUM has a 0.15% expense ratio, which is higher than SCHD's 0.06% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

MTUM vs. SCHD - Dividend Comparison

MTUM's dividend yield for the trailing twelve months is around 0.61%, less than SCHD's 3.12% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MTUM iShares MSCI USA Momentum Factor ETF	0.61%	0.91%	0.75%	1.35%	1.80%	0.55%	0.83%	1.48%	1.27%	1.02%	1.43%	1.12%
SCHD Schwab U.S. Dividend Equity ETF	3.12%	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 MTUM and SCHD in my portfolio?

MTUM and SCHD have a correlation of 0.07, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MTUM or SCHD?

MTUM has higher volatility (10.76%) compared to SCHD (3.82%). In terms of maximum drawdown, MTUM dropped -34.08% vs SCHD's -33.37%.

Which ETF is better, MTUM or SCHD?

On 10-year performance, MTUM leads with 15.78% vs 12.70% for SCHD. On fees, SCHD is cheaper at 0.06% per year. On volatility, SCHD has been the lower-risk option at 3.82%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MTUM or SCHD?

Over the 10-year period, MTUM has performed better with a 15.78% return vs 12.70%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MTUM or SCHD?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.15% for MTUM.

Which ETF pays a higher dividend yield, MTUM or SCHD?

SCHD has the higher dividend yield at 3.12%, compared with 0.61% for MTUM.

What is the main difference between MTUM and SCHD?

MTUM is categorized as Momentum, while SCHD is Dividend. MTUM tracks MSCI USA Momentum SR Variant Index, while SCHD tracks Dow Jones U.S. Dividend 100 Index. They also come from different issuers: iShares and Charles Schwab. Their fees differ too: 0.15% for MTUM and 0.06% for SCHD.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.90 vs 1.07), 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.