OPTZ vs. SCHM

Last updated Jun 24, 2026

OPTZ (Optimize Strategy Index ETF) and SCHM (Schwab US Mid-Cap ETF) are both Mid Cap Blend Equities funds - OPTZ tracks the Optimize Strategy Index while SCHM tracks the Dow Jones US Total Stock Market Mid-Cap. Both are passively managed. Over the past year, OPTZ returned 61.16% vs 31.33% for SCHM. Their correlation of 0.90 suggests significant overlap in exposure. OPTZ charges 0.25%/yr vs 0.04%/yr for SCHM.

Performance

OPTZ vs. SCHM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Optimize Strategy Index ETF (OPTZ) and Schwab US Mid-Cap ETF (SCHM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, OPTZ achieves a 32.54% return, which is significantly higher than SCHM's 19.11% return.

OPTZ

• 1D: -3.23%
• 1M: 7.00%
• YTD: 32.54%
• 6M: 30.49%
• 1Y: 61.16%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SCHM

• 1D: -1.73%
• 1M: 2.88%
• YTD: 19.11%
• 6M: 16.97%
• 1Y: 31.33%
• 3Y*: 17.85%
• 5Y*: 8.08%
• 10Y*: 11.71%

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

OPTZ vs. SCHM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
OPTZ Optimize Strategy Index ETF	32.54%	22.83%	16.41%
SCHM Schwab US Mid-Cap ETF	19.11%	10.17%	10.05%

Correlation

The correlation between OPTZ and SCHM is 0.88, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.88
Correlation (All Time) Calculated using the full available price history since Apr 23, 2024	0.90

The correlation between OPTZ and SCHM has been stable across timeframes, ranging from 0.88 to 0.90 - a consistent structural relationship.

OPTZ vs. SCHM - Sectors Allocation Comparison

Sectors	OPTZ	SCHM
Technology	55.4%	22.1%
Healthcare	9.4%	10.9%
Consumer Cyclical	8.5%	10.8%
Industrials	8.2%	21.7%
Financial Services	8.0%	10.9%
Consumer Defensive	3.5%	3.4%
Communication Services	2.6%	2.6%
Real Estate	1.4%	6.4%
Energy	1.3%	3.4%
Basic Materials	1.1%	4.7%
Utilities	0.6%	2.9%

Return for Risk

OPTZ vs. SCHM — Risk / Return Rank

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

OPTZ

OPTZ Risk / Return Rank: 92
OPTZ Sharpe Ratio Rank: 93
OPTZ Sortino Ratio Rank: 91
OPTZ Omega Ratio Rank: 89
OPTZ Calmar Ratio Rank: 92
OPTZ Martin Ratio Rank: 94

SCHM

SCHM Risk / Return Rank: 64
SCHM Sharpe Ratio Rank: 60
SCHM Sortino Ratio Rank: 60
SCHM Omega Ratio Rank: 56
SCHM Calmar Ratio Rank: 70
SCHM Martin Ratio Rank: 74

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.

OPTZ vs. SCHM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Optimize Strategy Index ETF (OPTZ) and Schwab US Mid-Cap ETF (SCHM). 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.

	OPTZ	SCHM	Difference
Sharpe ratio: Return per unit of total volatility	3.09	1.93	+1.16
Sortino ratio: Return per unit of downside risk	3.95	2.72	+1.23
Omega ratio: Gain probability vs. loss probability	1.52	1.34	+0.19
Calmar ratio: Return relative to maximum drawdown	5.78	3.38	+2.40
Martin ratio: Return relative to average drawdown	25.39	13.48	+11.90

OPTZ vs. SCHM - Sharpe Ratio Comparison

The current OPTZ Sharpe Ratio is 3.09, which is higher than the SCHM Sharpe Ratio of 1.93. The chart below compares the historical Sharpe Ratios of OPTZ and SCHM, 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

OPTZ vs. SCHM - Drawdown Comparison

The maximum OPTZ drawdown since its inception was -25.75%, smaller than the maximum SCHM drawdown of -42.43%. Use the drawdown chart below to compare losses from any high point for OPTZ and SCHM.

Drawdown Indicators

	OPTZ	SCHM	Difference
Max Drawdown Largest peak-to-trough decline	-25.75%	-42.43%	+16.68%
Max Drawdown (1Y) Largest decline over 1 year	-10.63%	-9.32%	-1.31%
Max Drawdown (3Y) Largest decline over 3 years	—	-23.27%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-26.46%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-42.43%	—
Current Drawdown Current decline from peak	-3.23%	-1.73%	-1.50%
Average Drawdown Average peak-to-trough decline	-3.36%	-5.64%	+2.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.42%	2.33%	+0.09%

Volatility

OPTZ vs. SCHM - Volatility Comparison

Optimize Strategy Index ETF (OPTZ) has a higher volatility of 9.74% compared to Schwab US Mid-Cap ETF (SCHM) at 5.75%. This indicates that OPTZ's price experiences larger fluctuations and is considered to be riskier than SCHM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	OPTZ	SCHM	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.74%	5.75%	+3.99%
Volatility (6M) Calculated over the trailing 6-month period	16.08%	12.61%	+3.47%
Volatility (1Y) Calculated over the trailing 1-year period	19.88%	16.30%	+3.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.28%	19.67%	+1.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.28%	20.49%	+0.79%

OPTZ vs. SCHM - Expense Ratio Comparison

OPTZ has a 0.25% expense ratio, which is higher than SCHM's 0.04% 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

OPTZ vs. SCHM - Dividend Comparison

OPTZ's dividend yield for the trailing twelve months is around 0.44%, less than SCHM's 1.22% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
OPTZ Optimize Strategy Index ETF	0.44%	0.58%	0.32%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SCHM Schwab US Mid-Cap ETF	1.22%	1.46%	1.43%	1.50%	1.67%	1.13%	1.31%	1.48%	1.56%	1.27%	1.51%	1.54%

Frequently Asked Questions

Can I hold both OPTZ and SCHM in my portfolio?

OPTZ and SCHM have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, OPTZ or SCHM?

OPTZ has higher volatility (9.74%) compared to SCHM (5.75%). In terms of maximum drawdown, OPTZ dropped -25.75% vs SCHM's -42.43%.

Which ETF is better, OPTZ or SCHM?

On 1-year performance, OPTZ leads with 61.16% vs 31.33% for SCHM. On fees, SCHM is cheaper at 0.04% per year. On volatility, SCHM has been the lower-risk option at 5.75%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, OPTZ or SCHM?

Over the 1-year period, OPTZ has performed better with a 61.16% return vs 31.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, OPTZ or SCHM?

SCHM is cheaper with a 0.04% expense ratio, compared with 0.25% for OPTZ.

Which ETF pays a higher dividend yield, OPTZ or SCHM?

SCHM has the higher dividend yield at 1.22%, compared with 0.44% for OPTZ.

What is the main difference between OPTZ and SCHM?

OPTZ tracks Optimize Strategy Index, while SCHM tracks Dow Jones US Total Stock Market Mid-Cap. They also come from different issuers: Optimize and Charles Schwab. Their fees differ too: 0.25% for OPTZ and 0.04% for SCHM.

Which has better risk-adjusted returns?

OPTZ currently has the higher Sharpe Ratio (3.09 vs 1.93), 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.