SCHD vs SMHB
Schwab US Dividend Equity ETF vs ETRACS Monthly Pay 2xLeveraged US Small Cap High Dividend ETN Series B
Which is better, SCHD or SMHB?
Large Cap Value against Trading-Leveraged Equity.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SCHD | SMHB |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.85% |
| AUM | $111.6B | $22M |
| Dividend Yield | 3.24% | 19.44% |
| Holdings | 206 | - |
| YTD Return | +24.55%Best | -11.44% |
| 1Y Return | +29.85%Best | -16.12% |
| 3Y Return (annualized) | +16.64%Best | -3.71% |
| 5Y Return (annualized) | +9.54%Best | -10.44% |
| Volatility (annualized) | 16.6%Best | 54.9% |
| Max Drawdown | -33.4%Best | -92.4% |
| $10,000 over 5 years | $15,771Best | $5,762 |
| Fund Family | Charles Schwab Asset Management | UBS AG |
| Category | Equity | Alternative |
| Style | Large Cap Value | Trading-Leveraged Equity |
| Inception | Oct 20, 2011 | Nov 8, 2018 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 9, 2018 to Oct 14, 2026 (7.9 years).
SCHD vs SMHB growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 7.9 years both funds cover.
SCHD vs SMHB Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and ETRACS Monthly Pay 2xLeveraged US Small Cap High Dividend ETN Series B (SMHB) is an ETF from UBS AG. Over the past year SCHD returned +29.85% while SMHB returned -16.12%. Year to date, SCHD is up 24.55% versus a loss of 11.44% for SMHB.
Over three years, SCHD compounded at +16.64% per year against -3.71% for SMHB; over five years the annualized figures are +9.54% and -10.44% respectively. Across the full 8-year window we track, SCHD has the edge at +11.67% annualized vs -13.37%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SMHB has been the more volatile fund, with annualized monthly volatility of 54.9% compared with 16.6% for SCHD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -33.4% for SCHD and -92.4% for SMHB. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while SMHB charges 0.85%. On a $10,000 position that is $6 vs $85 annually, a gap of $79 per year that compounds over a long holding period. On income, SCHD currently yields 3.24% against 19.44% for SMHB.
You are not choosing between two funds in isolation.
Whichever of SCHD and SMHB you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SCHD or SMHB?
SCHD has an expense ratio of 0.06% while SMHB charges 0.85%. SCHD is the cheaper option, by $79 a year on a $10,000 investment.
Which performed better, SCHD or SMHB?
Over the past year SCHD returned +29.85% vs -16.12% for SMHB, so SCHD leads on 1-year performance. Over the longest common window we track (8 years), SCHD annualized +11.67% vs -13.37% for SMHB. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or SMHB?
SMHB has been the more volatile fund at 54.9% annualized versus 16.6% for SCHD. Worst drawdown: SCHD -33.4% vs SMHB -92.4%.
Should I hold both SCHD and SMHB?
SCHD and SMHB have a monthly-return correlation of 0.79, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, SCHD or SMHB?
SCHD yields 3.24% while SMHB yields 19.44%, so SMHB currently pays the higher dividend yield.
Is SMHB better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.