SCHM vs. SCHD

Last updated Jun 4, 2026

SCHM (Schwab US Mid-Cap ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - SCHM is a Mid Cap Growth Equities fund tracking the Dow Jones US Total Stock Market Mid-Cap, while SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. Both are passively managed. Over the past 10 years, SCHM returned 11.37%/yr vs 12.77%/yr for SCHD. Their correlation of 0.82 suggests significant overlap in exposure. SCHM charges 0.04%/yr vs 0.06%/yr for SCHD.

Performance

SCHM vs. SCHD - Performance Comparison

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

Returns By Period

The year-to-date returns for both stocks are quite close, with SCHM having a 19.05% return and SCHD slightly lower at 19.01%. Over the past 10 years, SCHM has underperformed SCHD with an annualized return of 11.37%, while SCHD has yielded a comparatively higher 12.77% annualized return.

SCHM

• 1D: -0.03%
• 1M: 5.28%
• YTD: 19.05%
• 6M: 19.54%
• 1Y: 32.45%
• 3Y*: 18.14%
• 5Y*: 8.07%
• 10Y*: 11.37%

SCHD

• 1D: 0.00%
• 1M: 2.70%
• YTD: 19.01%
• 6M: 18.63%
• 1Y: 27.16%
• 3Y*: 15.09%
• 5Y*: 8.36%
• 10Y*: 12.77%

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

SCHM vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHM Schwab US Mid-Cap ETF	19.05%	10.17%	11.98%	16.69%	-17.07%	19.36%	15.26%	27.48%	-8.77%	19.60%
SCHD Schwab U.S. Dividend Equity ETF	19.01%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	20.85%

Correlation

The correlation between SCHM and SCHD is 0.60, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.60
Correlation (3Y) Calculated over the trailing 3-year period	0.73
Correlation (5Y) Calculated over the trailing 5-year period	0.79
Correlation (10Y) Calculated over the trailing 10-year period	0.80
Correlation (All Time) Calculated using the full available price history since Oct 21, 2011	0.82

Over the past year, the correlation between SCHM and SCHD has dropped to 0.60 - well below their long-term average of 0.82, suggesting their price drivers have been diverging.

SCHM vs. SCHD - Sectors Allocation Comparison

Sectors	SCHM	SCHD
Technology	22.0%	16.4%
Industrials	21.4%	7.5%
Financial Services	11.3%	9.3%
Healthcare	10.8%	18.8%
Consumer Cyclical	10.3%	6.3%
Real Estate	6.5%	-
Basic Materials	4.7%	1.2%
Consumer Defensive	3.8%	19.2%
Energy	3.6%	16.2%
Utilities	3.0%	0.0%
Communication Services	2.6%	6.3%

Return for Risk

SCHM vs. SCHD — Risk / Return Rank

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

SCHM

SCHM Risk / Return Rank: 65
SCHM Sharpe Ratio Rank: 61
SCHM Sortino Ratio Rank: 62
SCHM Omega Ratio Rank: 58
SCHM Calmar Ratio Rank: 69
SCHM Martin Ratio Rank: 73

SCHD

SCHD Risk / Return Rank: 80
SCHD Sharpe Ratio Rank: 75
SCHD Sortino Ratio Rank: 84
SCHD Omega Ratio Rank: 73
SCHD Calmar Ratio Rank: 91
SCHD Martin Ratio Rank: 75

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.

SCHM vs. SCHD - Risk-Adjusted Trends Comparison

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

	SCHM	SCHD	Difference
Sharpe ratio Return per unit of total volatility	2.09	2.49	-0.40
Sortino ratio Return per unit of downside risk	2.94	3.87	-0.92
Omega ratio Gain probability vs. loss probability	1.36	1.45	-0.08
Calmar ratio Return relative to maximum drawdown	3.50	5.91	-2.41
Martin ratio Return relative to average drawdown	14.11	14.53	-0.42
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SCHM vs. SCHD - Sharpe Ratio Comparison

The current SCHM Sharpe Ratio is 2.09, which is comparable to the SCHD Sharpe Ratio of 2.49. The chart below compares the historical Sharpe Ratios of SCHM 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.

Sharpe Ratios by Period

	SCHM	SCHD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.09	2.49	-0.40
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.41	0.58	-0.17
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.56	0.77	-0.21
Sharpe Ratio (All Time) Calculated using the full available price history	0.59	0.86	-0.27

Drawdowns

SCHM vs. SCHD - Drawdown Comparison

The maximum SCHM drawdown since its inception was -42.43%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for SCHM and SCHD.

Drawdown Indicators

	SCHM	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-42.43%	-33.37%	-9.06%
Max Drawdown (1Y) Largest decline over 1 year	-9.32%	-4.61%	-4.71%
Max Drawdown (3Y) Largest decline over 3 years	-23.27%	-16.13%	-7.14%
Max Drawdown (5Y) Largest decline over 5 years	-26.46%	-16.85%	-9.61%
Max Drawdown (10Y) Largest decline over 10 years	-42.43%	-33.37%	-9.06%
Current Drawdown Current decline from peak	-0.03%	-1.40%	+1.37%
Average Drawdown Average peak-to-trough decline	-5.66%	-3.32%	-2.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.31%	1.88%	+0.43%

Volatility

SCHM vs. SCHD - Volatility Comparison

Schwab US Mid-Cap ETF (SCHM) has a higher volatility of 4.72% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 2.66%. This indicates that SCHM'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

	SCHM	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.72%	2.66%	+2.06%
Volatility (6M) Calculated over the trailing 6-month period	11.74%	7.66%	+4.08%
Volatility (1Y) Calculated over the trailing 1-year period	15.62%	10.96%	+4.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.56%	14.38%	+5.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.46%	16.72%	+3.74%

SCHM vs. SCHD - Expense Ratio Comparison

SCHM has a 0.04% expense ratio, which is lower than SCHD's 0.06% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SCHM vs. SCHD - Dividend Comparison

SCHM's dividend yield for the trailing twelve months is around 1.22%, less than SCHD's 3.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHD Schwab U.S. Dividend Equity ETF	3.26%	3.82%	3.64%	3.49%	3.39%	2.78%	3.16%	2.98%	3.06%	2.63%	2.89%	2.97%
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 SCHM and SCHD in my portfolio?

SCHM and SCHD have a correlation of 0.60, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCHM or SCHD?

SCHM has higher volatility (4.72%) compared to SCHD (2.66%). In terms of maximum drawdown, SCHM dropped -42.43% vs SCHD's -33.37%.

Which ETF is better, SCHM or SCHD?

On 10-year performance, SCHD leads with 12.77% vs 11.37% for SCHM. On fees, SCHM is cheaper at 0.04% per year. On volatility, SCHD has been the lower-risk option at 2.66%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHM or SCHD?

Over the 10-year period, SCHD has performed better with a 12.77% return vs 11.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHM or SCHD?

SCHM is cheaper with a 0.04% expense ratio, compared with 0.06% for SCHD.

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

SCHD has the higher dividend yield at 3.26%, compared with 1.22% for SCHM.

What is the main difference between SCHM and SCHD?

SCHM is categorized as Mid Cap Growth Equities, while SCHD is Dividend. SCHM tracks Dow Jones US Total Stock Market Mid-Cap, while SCHD tracks Dow Jones U.S. Dividend 100 Index. Their fees differ too: 0.04% for SCHM and 0.06% for SCHD.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.49 vs 2.09), 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.