SCEP vs. SCMC

Last updated Jun 23, 2026

SCEP (Sterling Capital Hedged Equity Premium Income ETF) and SCMC (Sterling Capital Multi-Strategy Income ETF) are both exchange-traded funds - SCEP is a Equity Hedged fund actively managed by Sterling Capital, while SCMC is a Multisector Bonds fund actively managed by Sterling Capital. Both are actively managed. A 0.55 correlation means they provide meaningful diversification when combined. SCEP charges 0.65%/yr vs 0.55%/yr for SCMC.

Performance

SCEP vs. SCMC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Sterling Capital Hedged Equity Premium Income ETF (SCEP) and Sterling Capital Multi-Strategy Income ETF (SCMC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCEP achieves a 3.70% return, which is significantly higher than SCMC's 2.06% return.

SCEP

• 1D: -0.40%
• 1M: 0.35%
• YTD: 3.70%
• 6M: 3.72%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

SCMC

• 1D: -0.12%
• 1M: 0.49%
• YTD: 2.06%
• 6M: 2.16%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SCEP vs. SCMC - Yearly Performance Comparison

	2026 (YTD)	2025
SCEP Sterling Capital Hedged Equity Premium Income ETF	3.70%	-0.50%
SCMC Sterling Capital Multi-Strategy Income ETF	2.06%	0.11%

Correlation

The correlation between SCEP and SCMC is 0.55, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Dec 11, 2025	0.55

Return for Risk

SCEP vs. SCMC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Sterling Capital Hedged Equity Premium Income ETF (SCEP) and Sterling Capital Multi-Strategy Income ETF (SCMC). 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Drawdowns

SCEP vs. SCMC - Drawdown Comparison

The maximum SCEP drawdown since its inception was -7.25%, which is greater than SCMC's maximum drawdown of -1.91%. Use the drawdown chart below to compare losses from any high point for SCEP and SCMC.

Drawdown Indicators

	SCEP	SCMC	Difference
Max Drawdown Largest peak-to-trough decline	-7.25%	-1.91%	-5.34%
Current Drawdown Current decline from peak	-0.56%	-0.12%	-0.44%
Average Drawdown Average peak-to-trough decline	-1.54%	-0.35%	-1.19%

Volatility

Volatility by Period

	SCEP	SCMC	Difference
Volatility (1Y) Calculated over the trailing 1-year period	10.64%	2.90%	+7.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.64%	2.90%	+7.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.64%	2.90%	+7.74%

SCEP vs. SCMC - Expense Ratio Comparison

SCEP has a 0.65% expense ratio, which is higher than SCMC's 0.55% expense ratio.

Dividends

SCEP vs. SCMC - Dividend Comparison

SCEP's dividend yield for the trailing twelve months is around 3.25%, more than SCMC's 2.17% yield.

Position	TTM	2025
SCEP Sterling Capital Hedged Equity Premium Income ETF	3.25%	0.38%
SCMC Sterling Capital Multi-Strategy Income ETF	2.17%	0.29%

Frequently Asked Questions

Can I hold both SCEP and SCMC in my portfolio?

SCEP and SCMC have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, SCEP or SCMC?

On fees, SCMC is cheaper at 0.55% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, SCEP or SCMC?

SCMC is cheaper with a 0.55% expense ratio, compared with 0.65% for SCEP.

Which ETF pays a higher dividend yield, SCEP or SCMC?

SCEP has the higher dividend yield at 3.25%, compared with 2.17% for SCMC.

What is the main difference between SCEP and SCMC?

SCEP is categorized as Equity Hedged, while SCMC is Multisector Bonds. Their fees differ too: 0.65% for SCEP and 0.55% for SCMC.