What is the main difference between SCHA and SCHD?

SCHA (Schwab US Small-Cap ETF) focuses on smaller companies in the US market, while SCHD (US Dividend Equity ETF) targets large, stable companies with a strong history of paying dividends. The difference lies in their investment strategy: SCHA seeks growth potential from smaller firms, whereas SCHD aims for regular income and stability from established corporations.

What does 'expense ratio' mean for ETFs?

An expense ratio is the annual fee charged by an ETF to manage its investments, expressed as a percentage of assets. For example, SCHA has a 0.03% expense ratio, while SCHD has a 0.06%. This means for every £10,000 invested, SCHA costs £3 per year, and SCHD costs £6. Lower fees can help preserve long-term returns.

How do expense ratios differ between these funds?

The expense ratio is a direct cost deducted from an investor's returns. SCHA has a lower expense ratio of 0.03% compared to SCHD's 0.06%. While this might seem minor, over a long investment period, even small differences can impact compounded growth. It is an important consideration when comparing similar funds.

Which fund offers a higher dividend yield?

SCHD provides a significantly higher dividend yield of 3.11%, compared to SCHA's 1.06%. This reflects SCHD's focus on established companies that regularly distribute profits to shareholders. If you are seeking regular income, SCHD aligns more closely with this goal. SCHA's lower yield suggests its companies are likely reinvesting earnings for growth rather than paying dividends.

What sectors are SCHA and SCHD exposed to?

SCHA has a top holding of SNDK at 5.18%, and SCHD has MRK at 4.89%. While specific sector weights for both are not available in the provided data, SCHD's top holdings suggest a tilt towards healthcare and consumer staples. SCHA's holdings indicate broader exposure to technology and industrial sectors.

Do SCHA and SCHD share the same top holdings?

No, there is no overlap between the top ten holdings of SCHA and SCHD. SCHA's largest position is SNDK at 5.18%, while SCHD's largest is MRK at 4.89%. This indicates that the two funds invest in entirely different sets of companies, reflecting their distinct market caps and strategies.

How large are the funds' net assets?

The net assets of an ETF can influence liquidity and trading ease. SCHA has $25.5 billion in assets, while SCHD has $112.8 billion. Both funds possess substantial size, which generally supports efficient trading and tracking of their respective indices, ensuring investors can buy or sell shares with minimal market impact.

What are the historical track records of SCHA and SCHD?

SCHA was launched on November 3, 2009, while SCHD was launched on October 20, 2011. SCHA has a slightly longer history, providing an additional two years of performance data. Both funds have long enough track records to assess their behaviour across different market conditions.

How do SCHA and SCHD handle market volatility?

SCHA targets small-cap stocks, which often exhibit higher price fluctuations during volatile markets due to their smaller size and less established operations. SCHD focuses on large-cap value companies that typically pay dividends and are less volatile. Investors should consider their risk tolerance when choosing between these funds.

What type of stocks do SCHA and SCHD invest in?

SCHA invests in US small-cap companies with potential for growth, classified as a 'Small Blend' fund. SCHD invests in large-cap 'Value' stocks that offer high dividend yields and stable cash flows. These funds target different market segments and investor objectives.

Is SCHA or SCHD easier to trade?

Both funds are highly liquid due to their large net assets. However, SCHD has significantly higher assets under management at $112.8 billion, which generally translates to tighter bid-ask spreads and smoother trading experiences, especially for large investors.

How do SCHA and SCHD compare for retirement investing?

For retirement, income and stability are paramount. SCHD's dividend yield of 3.11% supports this goal. SCHA, with a lower yield of 1.06%, is more growth-oriented and may be suited for investors seeking long-term capital appreciation rather than immediate income.

SCHA vs SCHD

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

This page compares the Schwab US Small-Cap ETF (SCHA) and the US Dividend Equity ETF Schwab (SCHD), examining their fees, holdings, dividends and how each fund tracks its market. SCHA has a 0.03% expense ratio, while SCHD is 0.06%. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SCHA

Metric

SCHD

0.03%

Expense Ratio

0.06%

1.06%

Dividend Yield

3.11%

$25.48B

Net Assets

$112.77B

1,704

Holdings

102

Nov 3, 2009

Inception Date

Oct 20, 2011

–

Index Tracked

–

Small Blend

Fund Category

Large Value

SCHA costs about $3.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

Discover More Comparisons

SCHA vs SCHB

Compare SCHA and SCHB fees, holdings and dividends. Both Schwab ETFs track distinct markets with a 0.03% expense ratio. Review data to inform decisions.

SCHA vs VOO

Compare SCHA and VOO ETFs. Analyze fees, holdings, dividends, and tracking. SCHA offers small-cap exposure; VOO provides large-cap blend performance.

SCHA vs SCHM

Compare Schwab US Small-Cap and Mid-Cap ETFs. Review 0.03% fees, assets, dividends, top holdings and tracking to assess differences in these index funds.

Investment Analysis

SCHA

Pros

Low expense ratio of 0.03% reduces costs for investors in small blend equities.
Huge asset base of $25.5 billion ensures deep liquidity for trading SCHA.
Long history since 2009 provides ample tracking data for this small cap ETF.

Considerations

Small cap stocks can have significant price fluctuations in volatile markets.
Dividend yield of 1.06% is relatively modest compared to income funds.
The top holding SNDK at 5.18% creates a concentration risk in SCHA.

SCHD

Pros

High dividend yield of 3.11% attracts investors seeking regular income.
Low expense ratio of 0.06% is competitive for a dividend strategy fund.
Massive net assets of $112.8 billion ensure excellent liquidity and trading ease.

Considerations

Concentration risk arises as top holding MRK has a 4.89% weight.
Large Value category means the fund may lag during growth stock rallies.
Top ten holdings are heavily weighted towards specific sectors like healthcare and staples.

Related Market Insights

Capital Returns: The Shareholder Yield Play

Explore Capital Returns, a Neme focused on companies rewarding shareholders via buybacks & dividends. Invest in robust firms like Schwab with Nemo's thematic baskets.

Aimee Silverwood | Financial Analyst

25 July 2025

Read Insight

Related Market Insights

Capital Returns: The Shareholder Yield Play

Explore Capital Returns, a Neme focused on companies rewarding shareholders via buybacks & dividends. Invest in robust firms like Schwab with Nemo's thematic baskets.

Aimee Silverwood | Financial Analyst

25 July 2025

Read Insight

About SCHA and SCHD

SCHA (SCHA)

Schwab US Small‑Cap ETF (SCHA) offers broad exposure to US small-capitalisation companies through a low-cost, market‑weighted fund managed by Charles Schwab. It seeks to track a small‑cap index, providing diversified access to hundreds of smaller US-listed firms across sectors. Investors often use SCHA to complement large‑cap holdings, potentially enhancing long‑term growth and diversification, though small caps can be more volatile and sensitive to economic cycles. As an ETF, SCHA trades like a stock on exchanges, making it easy to buy or sell during market hours. It typically has a low expense ratio, but investors should also consider bid‑ask spreads, tracking error, and tax implications. This is general educational information and not personalised advice; returns are not guaranteed and the value of an investment can fall as well as rise. Suitability will depend on an individual’s goals, risk tolerance and investment horizon.

SCHD (SCHD)

SCHD (Schwab US Dividend Equity ETF) is an exchange‑traded fund that aims to provide exposure to high-quality U.S. companies that have a history of paying dividends. Managed by Charles Schwab, the ETF screens for firms with stable earnings, reasonable payout ratios and consistent dividend records, concentrating on large‑cap names across a range of sectors. Investors often use SCHD for income and as a core holding to capture dividend yield with the diversification and liquidity of an ETF. It is designed to be a low‑cost, transparent vehicle, though dividends and share prices can fall and past performance is not a guarantee of future results. Suitable for investors seeking income and long‑term total return, it may not fit those focused solely on capital growth or who require guarantees. As with any investment, consider costs, tax treatment and how it fits your wider portfolio before investing.

Which Baskets Do They Appear In?

Capital Returns: The Shareholder Yield Play

Following Charles Schwab's massive $20 billion stock buyback and dividend increase, this theme focuses on other financially robust companies that are similarly rewarding their investors. The strategy is to invest in firms with strong cash flows and a commitment to returning capital to shareholders.

Published: 25 July 2025

Explore Basket

Which Baskets Do They Appear In?

Capital Returns: The Shareholder Yield Play

Published: 25 July 2025

Explore Basket

Buy SCHA or SCHD in Nemo

🆓

Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

🔒

Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

💰

6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

SCHA vs SCHD

Fund Snapshot