SMMD vs. SCHA

Last updated Jun 5, 2026

SMMD (iShares Russell 2500 ETF) and SCHA (Schwab U.S. Small-Cap ETF) are both exchange-traded funds - SMMD is a Small Cap Growth Equities fund tracking the Russell 2500 Index, while SCHA is a Small Cap Blend Equities fund tracking the Dow Jones U.S. Small-Cap Total Stock Market Index. Both are passively managed. Over the past 5 years, SMMD returned 7.75%/yr vs 7.31%/yr for SCHA. Their correlation of 0.95 suggests significant overlap in exposure. SMMD charges 0.15%/yr vs 0.04%/yr for SCHA.

Performance

SMMD vs. SCHA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Russell 2500 ETF (SMMD) and Schwab U.S. Small-Cap ETF (SCHA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMMD achieves a 18.99% return, which is significantly lower than SCHA's 20.80% return.

SMMD

• 1D: 0.52%
• 1M: 3.44%
• YTD: 18.99%
• 6M: 17.98%
• 1Y: 36.93%
• 3Y*: 19.07%
• 5Y*: 7.75%
• 10Y*: —

SCHA

• 1D: 0.85%
• 1M: 3.65%
• YTD: 20.80%
• 6M: 19.63%
• 1Y: 41.92%
• 3Y*: 19.74%
• 5Y*: 7.31%
• 10Y*: 11.12%

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

SMMD vs. SCHA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SMMD iShares Russell 2500 ETF	18.99%	11.72%	11.87%	17.71%	-18.53%	18.30%	19.98%	28.01%	-10.58%	10.82%
SCHA Schwab U.S. Small-Cap ETF	20.80%	11.60%	11.16%	18.46%	-19.81%	16.45%	19.34%	26.50%	-11.79%	9.86%

Correlation

The correlation between SMMD and SCHA is 0.99 - 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	0.99
Correlation (3Y) Calculated over the trailing 3-year period	0.99
Correlation (5Y) Calculated over the trailing 5-year period	0.99
Correlation (All Time) Calculated using the full available price history since Jul 10, 2017	0.95

The correlation between SMMD and SCHA has been stable across timeframes, ranging from 0.95 to 0.99 - a consistent structural relationship.

SMMD vs. SCHA - Sectors Allocation Comparison

Sectors	SMMD	SCHA
Industrials	21.0%	15.4%
Technology	18.8%	23.3%
Financial Services	13.8%	15.7%
Healthcare	11.8%	13.5%
Consumer Cyclical	10.6%	9.0%
Real Estate	6.7%	6.0%
Energy	4.9%	5.5%
Basic Materials	4.4%	4.2%
Consumer Defensive	2.8%	2.6%
Utilities	2.7%	2.3%
Communication Services	2.5%	2.4%

Return for Risk

SMMD vs. SCHA — Risk / Return Rank

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

SMMD

SMMD Risk / Return Rank: 70
SMMD Sharpe Ratio Rank: 66
SMMD Sortino Ratio Rank: 67
SMMD Omega Ratio Rank: 61
SMMD Calmar Ratio Rank: 77
SMMD Martin Ratio Rank: 77

SCHA

SCHA Risk / Return Rank: 76
SCHA Sharpe Ratio Rank: 73
SCHA Sortino Ratio Rank: 73
SCHA Omega Ratio Rank: 66
SCHA Calmar Ratio Rank: 83
SCHA Martin Ratio Rank: 82

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.

SMMD vs. SCHA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2500 ETF (SMMD) 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.

	SMMD	SCHA	Difference
Sharpe ratio: Return per unit of total volatility	2.16	2.35	-0.18
Sortino ratio: Return per unit of downside risk	3.02	3.27	-0.25
Omega ratio: Gain probability vs. loss probability	1.37	1.39	-0.03
Calmar ratio: Return relative to maximum drawdown	3.84	4.43	-0.59
Martin ratio: Return relative to average drawdown	14.65	16.30	-1.66
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SMMD vs. SCHA - Sharpe Ratio Comparison

The current SMMD Sharpe Ratio is 2.16, which is comparable to the SCHA Sharpe Ratio of 2.35. The chart below compares the historical Sharpe Ratios of SMMD 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.

Sharpe Ratios by Period

	SMMD	SCHA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.16	2.35	-0.18
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.37	0.33	+0.04
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.49	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.58	-0.08

Drawdowns

SMMD vs. SCHA - Drawdown Comparison

The maximum SMMD drawdown since its inception was -41.06%, roughly equal to the maximum SCHA drawdown of -42.41%. Use the drawdown chart below to compare losses from any high point for SMMD and SCHA.

Drawdown Indicators

	SMMD	SCHA	Difference
Max Drawdown Largest peak-to-trough decline	-41.06%	-42.41%	+1.35%
Max Drawdown (1Y) Largest decline over 1 year	-9.66%	-9.50%	-0.16%
Max Drawdown (3Y) Largest decline over 3 years	-25.50%	-27.29%	+1.79%
Max Drawdown (5Y) Largest decline over 5 years	-28.26%	-30.79%	+2.53%
Max Drawdown (10Y) Largest decline over 10 years	—	-42.41%	—
Current Drawdown Current decline from peak	-0.11%	0.00%	-0.11%
Average Drawdown Average peak-to-trough decline	-8.37%	-7.58%	-0.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.53%	2.58%	-0.05%

Volatility

SMMD vs. SCHA - Volatility Comparison

iShares Russell 2500 ETF (SMMD) and Schwab U.S. Small-Cap ETF (SCHA) have volatilities of 5.01% and 4.81%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMMD	SCHA	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.01%	4.81%	+0.20%
Volatility (6M) Calculated over the trailing 6-month period	12.58%	12.84%	-0.26%
Volatility (1Y) Calculated over the trailing 1-year period	17.16%	17.96%	-0.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.82%	21.94%	-1.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.36%	22.71%	-0.35%

SMMD vs. SCHA - Expense Ratio Comparison

SMMD has a 0.15% expense ratio, which is higher than SCHA'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

SMMD vs. SCHA - Dividend Comparison

SMMD's dividend yield for the trailing twelve months is around 1.05%, more than SCHA's 0.99% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHA Schwab U.S. Small-Cap ETF	0.99%	1.26%	1.51%	1.42%	1.37%	1.19%	1.05%	1.39%	1.58%	1.24%	1.50%	1.48%
SMMD iShares Russell 2500 ETF	1.05%	1.28%	1.27%	1.44%	1.79%	1.12%	1.31%	1.50%	2.45%	0.68%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SMMD and SCHA in my portfolio?

With a correlation of 0.99, SMMD 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.

Which is riskier, SMMD or SCHA?

SMMD has higher volatility (5.01%) compared to SCHA (4.81%). In terms of maximum drawdown, SMMD dropped -41.06% vs SCHA's -42.41%.

Which ETF is better, SMMD or SCHA?

On 5-year performance, SMMD leads with 7.75% vs 7.31% for SCHA. On fees, SCHA is cheaper at 0.04% per year. On volatility, SCHA has been the lower-risk option at 4.81%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMMD or SCHA?

Over the 5-year period, SMMD has performed better with a 7.75% return vs 7.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMMD or SCHA?

SCHA is cheaper with a 0.04% expense ratio, compared with 0.15% for SMMD.

Which ETF pays a higher dividend yield, SMMD or SCHA?

SMMD has the higher dividend yield at 1.05%, compared with 0.99% for SCHA.

What is the main difference between SMMD and SCHA?

SMMD is categorized as Small Cap Growth Equities, while SCHA is Small Cap Blend Equities. SMMD tracks Russell 2500 Index, 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: 0.15% for SMMD and 0.04% for SCHA.

Which has better risk-adjusted returns?

SCHA currently has the higher Sharpe Ratio (2.35 vs 2.16), 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.