ETF Versus

SCHM vs SCHZ

Schwab U.S. Mid-Cap ETF vs Schwab U.S. Aggregate Bond ETF

Last updated: 2026-04-02

SCHM Schwab

Schwab U.S. Mid-Cap ETF (SCHM) is an exchange-traded fund issued by Schwab that provides exposure to mid-cap U.S. companies balancing growth potential and stability. It charges a very low expense ratio of 0.04%. The fund offers a moderate dividend yield of 1.40%. Launched in 2011, the fund has a 15-year track record.

AUM: $12.6B ER: 0.04% Yield: 1.40% Since: Jan 13, 2011
SCHZ Schwab

Schwab U.S. Aggregate Bond ETF (SCHZ) is an exchange-traded fund issued by Schwab that provides exposure to the broad U.S. investment-grade bond market. It charges a very low expense ratio of 0.03%. The fund offers a high dividend yield of 4.09%. Launched in 2011, the fund has a 15-year track record.

AUM: $9.9B ER: 0.03% Yield: 4.09% Since: Jul 14, 2011

Quick Verdict

Both funds have nearly identical expense ratios (0.03% vs 0.04%), so fees are not a differentiator here. Over the past year, SCHM has significantly outperformed with a 18.8% return vs -0.1%. Income investors may prefer SCHZ for its higher yield (4.1% vs 1.4%).

Key Metrics

Metric SCHM SCHZ
Expense Ratio 0.04% 0.03%
Dividend Yield 1.4% 4.1%
Fund Family Schwab Schwab
Category US Mid Cap US Aggregate Bond

Performance Chart

Indexed to 100 at start (5-year comparison)

80 91 102 113 124 135 2021-04 2022-06 2023-09 2024-12 2026-04
SCHM +23.5%
SCHZ -14.1%

Performance Comparison

Period SCHM SCHZ Difference
1 Month -5.47% -1.66% -3.81%
3 Months +2.53% -0.90% +3.43%
6 Months +4.03% -1.24% +5.27%
YTD +2.53% -0.90% +3.43%
1 Year +18.78% -0.09% +18.87%
3 Years +38.25% -1.43% +39.68%
5 Years +23.49% -14.13% +37.62%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period SCHM Fees SCHZ Fees You Save
$10.000 10 years $80 $60 $20
$10.000 20 years $344 $258 $86
$10.000 30 years $1.112 $835 $277
$50.000 10 years $399 $299 $100
$50.000 30 years $5.560 $4.176 $1.385
$100.000 30 years $11.121 $8.352 $2.769

Risk Metrics

Based on 5 years of daily returns

Metric SCHM SCHZ
Annualized Volatility 19.5% 6.1%
Max Drawdown -27.4% -21.9%
Sharpe Ratio 0.08 -1.21

Dividend Comparison

Metric SCHM SCHZ
Annual Dividend (per share) $0.44 $0.95
Dividend Yield 1.40% 4.08%
Distribution Frequency Quarterly Monthly

Top Holdings

SCHM Top Holdings

NameWeight
Sandisk CorporationSNDK1.95%
Ciena CorporationCIEN1.21%
Lumentum Holdings Inc.LITE1.07%
Coherent Corp.COHR0.98%
Bloom Energy CorporationBE0.74%
Texas Pacific Land CorporationTPL0.63%
TechnipFMC plcFTI0.62%
Tapestry, Inc.TPR0.60%
Casey's General Stores, Inc.CASY0.57%
FTAI Aviation Ltd.FTAI0.53%

Which One Should You Choose?

Choose SCHM if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose SCHZ if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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