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SMLF vs. SCHA
Performance
Return for Risk
Drawdowns
Volatility
Dividends

SMLF vs. SCHA

Last updated Jun 24, 2026

SMLF (iShares MSCI USA Small-Cap Multifactor ETF) and SCHA (Schwab U.S. Small-Cap ETF) are both Small Cap Blend Equities funds - SMLF tracks the MSCI USA Small Cap Diversified Multi-Factor while SCHA tracks the Dow Jones U.S. Small-Cap Total Stock Market Index. Both are passively managed. Over the past 10 years, SMLF returned 12.68%/yr vs 11.72%/yr for SCHA. Their correlation of 0.91 suggests significant overlap in exposure. SMLF charges 0.30%/yr vs 0.04%/yr for SCHA.

Performance

SMLF vs. SCHA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI USA Small-Cap Multifactor ETF (SMLF) and Schwab U.S. Small-Cap ETF (SCHA). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, SMLF achieves a 16.28% return, which is significantly lower than SCHA's 22.53% return. Over the past 10 years, SMLF has outperformed SCHA with an annualized return of 12.68%, while SCHA has yielded a comparatively lower 11.72% annualized return.

SMLF

1D
-0.85%
1M
3.41%
YTD
16.28%
6M
14.19%
1Y
32.00%
3Y*
20.44%
5Y*
11.09%
10Y*
12.68%

SCHA

1D
-1.72%
1M
4.56%
YTD
22.53%
6M
20.00%
1Y
41.81%
3Y*
19.85%
5Y*
7.30%
10Y*
11.72%
*Multi-year figures are annualized to reflect compound growth (CAGR)

SMLF vs. SCHA - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
SMLF
iShares MSCI USA Small-Cap Multifactor ETF		16.28%12.30%16.33%19.99%-12.19%26.53%8.38%21.56%-8.42%12.70%
SCHA
Schwab U.S. Small-Cap ETF		22.53%11.60%11.16%18.46%-19.81%16.45%19.34%26.50%-11.79%14.94%

Correlation

The correlation between SMLF and SCHA is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.97

Correlation (3Y)
Calculated over the trailing 3-year period

0.98

Correlation (5Y)
Calculated over the trailing 5-year period

0.97

Correlation (10Y)
Calculated over the trailing 10-year period

0.96

Correlation (All Time)
Calculated using the full available price history since Apr 30, 2015

0.91

The correlation between SMLF and SCHA has been stable across timeframes, ranging from 0.91 to 0.98 - a consistent structural relationship.

SMLF vs. SCHA - Sectors Allocation Comparison

Sectors
SMLF
SCHA

Industrials

19.5%
15.4%

Technology

19.1%
24.3%

Financial Services

14.3%
15.4%

Healthcare

12.9%
13.8%

Consumer Cyclical

11.4%
9.2%

Real Estate

5.6%
5.8%

Basic Materials

4.5%
4.1%

Energy

4.3%
4.8%

Consumer Defensive

3.3%
2.5%

Communication Services

3.2%
2.3%

Utilities

2.0%
2.1%

Industrials

SMLF
19.5%
SCHA
15.4%

Technology

SMLF
19.1%
SCHA
24.3%

Financial Services

SMLF
14.3%
SCHA
15.4%

Healthcare

SMLF
12.9%
SCHA
13.8%

Consumer Cyclical

SMLF
11.4%
SCHA
9.2%

Real Estate

SMLF
5.6%
SCHA
5.8%

Basic Materials

SMLF
4.5%
SCHA
4.1%

Energy

SMLF
4.3%
SCHA
4.8%

Consumer Defensive

SMLF
3.3%
SCHA
2.5%

Communication Services

SMLF
3.2%
SCHA
2.3%

Utilities

SMLF
2.0%
SCHA
2.1%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares MSCI USA Small-Cap Multifactor ETF

Schwab U.S. Small-Cap ETF

Often compared with SMLF:
SMLF vs. FSMDSMLF vs. SMLVSMLF vs. IWMSMLF vs. SMMVSMLF vs. VBRSMLF vs. GSSCSMLF vs. FZIPX
Often compared with SCHA:
SCHA vs. VBSCHA vs. AVUVSCHA vs. SWSSXSCHA vs. IJRSCHA vs. SCHDSCHA vs. SCHBSCHA vs. SCHM

Return for Risk

SMLF vs. SCHA — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
SMLF
SMLF Risk / Return Rank: 6262
Overall Rank
SMLF Sharpe Ratio Rank: 5757
Sharpe Ratio Rank
SMLF Sortino Ratio Rank: 5656
Sortino Ratio Rank
SMLF Omega Ratio Rank: 5151
Omega Ratio Rank
SMLF Calmar Ratio Rank: 7676
Calmar Ratio Rank
SMLF Martin Ratio Rank: 7272
Martin Ratio Rank
SCHA
SCHA Risk / Return Rank: 7575
Overall Rank
SCHA Sharpe Ratio Rank: 7373
Sharpe Ratio Rank
SCHA Sortino Ratio Rank: 7272
Sortino Ratio Rank
SCHA Omega Ratio Rank: 6464
Omega Ratio Rank
SCHA Calmar Ratio Rank: 8484
Calmar Ratio Rank
SCHA Martin Ratio Rank: 8383
Martin Ratio Rank
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.

SMLF vs. SCHA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Small-Cap Multifactor ETF (SMLF) and Schwab U.S. Small-Cap ETF (SCHA). 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.

SMLFSCHADifference
Sharpe ratioReturn per unit of total volatility
1.83
2.24

-0.41

Sortino ratioReturn per unit of downside risk
2.56
3.11

-0.55

Omega ratioGain probability vs. loss probability

1.31

1.37

-0.06

Calmar ratioReturn relative to maximum drawdown

3.69

4.42

-0.73

Martin ratioReturn relative to average drawdown

12.66

16.18

-3.52

SMLF vs. SCHA - Sharpe Ratio Comparison

The current SMLF Sharpe Ratio is 1.83, which is comparable to the SCHA Sharpe Ratio of 2.24. The chart below compares the historical Sharpe Ratios of SMLF and SCHA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

SMLF vs. SCHA - Drawdown Comparison

The maximum SMLF drawdown since its inception was -41.89%, roughly equal to the maximum SCHA drawdown of -42.41%. Use the drawdown chart below to compare losses from any high point for SMLF and SCHA.

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Drawdown Indicators

SMLFSCHADifference

Max Drawdown

Largest peak-to-trough decline

-41.89%

-42.41%

+0.52%

Max Drawdown (1Y)

Largest decline over 1 year

-8.71%

-9.50%

+0.79%

Max Drawdown (3Y)

Largest decline over 3 years

-26.28%

-27.29%

+1.01%

Max Drawdown (5Y)

Largest decline over 5 years

-26.28%

-30.79%

+4.51%

Max Drawdown (10Y)

Largest decline over 10 years

-41.89%

-42.41%

+0.52%

Current Drawdown

Current decline from peak

-0.85%

-1.72%

+0.87%

Average Drawdown

Average peak-to-trough decline

-6.57%

-7.56%

+0.99%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.53%

2.59%

-0.06%

Volatility

SMLF vs. SCHA - Volatility Comparison

The current volatility for iShares MSCI USA Small-Cap Multifactor ETF (SMLF) is 5.35%, while Schwab U.S. Small-Cap ETF (SCHA) has a volatility of 6.71%. This indicates that SMLF experiences smaller price fluctuations and is considered to be less risky than SCHA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

SMLFSCHADifference

Volatility (1M)

Calculated over the trailing 1-month period

5.35%

6.71%

-1.36%

Volatility (6M)

Calculated over the trailing 6-month period

12.92%

13.92%

-1.00%

Volatility (1Y)

Calculated over the trailing 1-year period

17.61%

18.77%

-1.16%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

21.12%

22.05%

-0.93%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

21.81%

22.75%

-0.94%

SMLF vs. SCHA - Expense Ratio Comparison

SMLF has a 0.30% expense ratio, which is higher than SCHA's 0.04% expense ratio.

Dividends

SMLF vs. SCHA - Dividend Comparison

SMLF's dividend yield for the trailing twelve months is around 1.02%, more than SCHA's 0.98% yield.

PositionTTM20252024202320222021202020192018201720162015
SCHA
Schwab U.S. Small-Cap ETF		0.98%1.26%1.51%1.42%1.37%1.19%1.05%1.39%1.58%1.24%1.50%1.48%
SMLF
iShares MSCI USA Small-Cap Multifactor ETF		1.02%1.14%1.33%1.13%1.23%1.07%1.33%1.39%1.17%0.93%0.78%0.79%

Frequently Asked Questions

With a correlation of 0.97, SMLF and SCHA move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

SCHA has higher volatility (6.71%) compared to SMLF (5.35%). In terms of maximum drawdown, SMLF dropped -41.89% vs SCHA's -42.41%.

On 10-year performance, SMLF leads with 12.68% vs 11.72% for SCHA. On fees, SCHA is cheaper at 0.04% per year. On volatility, SMLF has been the lower-risk option at 5.35%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, SMLF has performed better with a 12.68% return vs 11.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

SCHA is cheaper with a 0.04% expense ratio, compared with 0.30% for SMLF.

SMLF has the higher dividend yield at 1.02%, compared with 0.98% for SCHA.

SMLF tracks MSCI USA Small Cap Diversified Multi-Factor, while SCHA tracks Dow Jones U.S. Small-Cap Total Stock Market Index. They also come from different issuers: iShares and Charles Schwab. Their fees differ too: 0.30% for SMLF and 0.04% for SCHA.

SCHA currently has the higher Sharpe Ratio (2.24 vs 1.83), 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.

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