EDD vs SCHD
EDD vs SCHD
Morgan Stanley Emerging Markets Domestic Debt Fund Inc. vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | EDD | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.90% | 0.06% | |
| AUM | - | $103.7B | |
| Dividend Yield | 10.70% | 3.31% | |
| Holdings | 684 | 104 | |
| YTD Return | +14.27% | +24.08% | |
| 1Y Return | +28.62% | +31.88% | |
| 3Y Return (annualized) | +19.64% | +14.92% | |
| 5Y Return (annualized) | +8.44% | +9.85% | |
| Volatility (annualized) | 20.9% | 13.6% | |
| Max Drawdown | -81.5% | -33.4% | |
| Fund Family | Morgan Stanley Investment Management | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Apr 24, 2007 | Oct 20, 2011 |
EDD vs SCHD Performance
Morgan Stanley Emerging Markets Domestic Debt Fund Inc. (EDD) is a ETF from Morgan Stanley Investment Management and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year EDD returned +28.62% while SCHD returned +31.88%. Year to date, EDD is up 14.27% versus a gain of 24.08% for SCHD.
Over three years, EDD compounded at +19.64% per year against +14.92% for SCHD; over five years the annualized figures are +8.44% and +9.85% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs -3.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EDD has been the more volatile fund, with annualized monthly volatility of 20.9% compared with 13.6% 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 -81.5% for EDD and -33.4% for SCHD. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EDD charges 1.90% per year while SCHD charges 0.06%. On a $10,000 position that is $190 vs $6 annually, a gap of $184 per year that compounds over a long holding period. On income, EDD currently yields 10.70% against 3.31% for SCHD.
Holdings Overlap
EDD and SCHD share 0 holdings out of 109 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, EDD or SCHD?
EDD has an expense ratio of 1.90% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $184 per year of difference.
Which performed better, EDD or SCHD?
Over the past year EDD returned +28.62% vs +31.88% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), EDD annualized -3.75% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, EDD or SCHD?
EDD has been the more volatile fund at 20.9% annualized versus 13.6% for SCHD. Worst drawdown: EDD -81.5% vs SCHD -33.4%.
Should I hold both EDD and SCHD?
EDD and SCHD have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EDD and SCHD?
EDD and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 109 unique securities.
Which pays a higher dividend, EDD or SCHD?
EDD yields 10.70% while SCHD yields 3.31%, so EDD currently pays the higher dividend yield.
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