EMD vs SCHD
EMD vs SCHD
Western Asset Emerging Markets Debt Fund Inc vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. EMD offers more diversification with 136 holdings.
Side-by-Side Comparison
| Metric | EMD | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.59% | 0.06% | |
| AUM | $636M | $103.7B | |
| Dividend Yield | 9.68% | 3.31% | |
| Holdings | 278 | 104 | |
| YTD Return | +4.47% | +23.31% | |
| 1Y Return | +16.22% | +30.42% | |
| 3Y Return (annualized) | +17.43% | +14.66% | |
| 5Y Return (annualized) | +5.13% | +9.59% | |
| Volatility (annualized) | 17.2% | 13.6% | |
| Max Drawdown | -64.5% | -33.4% | |
| Fund Family | Franklin Templeton Investments (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Dec 1, 2003 | Oct 20, 2011 |
EMD vs SCHD Performance
Western Asset Emerging Markets Debt Fund Inc (EMD) is a ETF from Franklin Templeton Investments (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year EMD returned +16.22% while SCHD returned +30.42%. Year to date, EMD is up 4.47% versus a gain of 23.31% for SCHD.
Over three years, EMD compounded at +17.43% per year against +14.66% for SCHD; over five years the annualized figures are +5.13% and +9.59% respectively. Across the full 15-year window we track, SCHD has the edge at +11.34% annualized vs -0.33%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EMD has been the more volatile fund, with annualized monthly volatility of 17.2% 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 -64.5% for EMD 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EMD charges 1.59% per year while SCHD charges 0.06%. On a $10,000 position that is $159 vs $6 annually, a gap of $153 per year that compounds over a long holding period. On income, EMD currently yields 9.68% against 3.31% for SCHD.
Holdings Overlap
EMD and SCHD share 0 holdings out of 236 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, EMD or SCHD?
EMD has an expense ratio of 1.59% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $153 per year of difference.
Which performed better, EMD or SCHD?
Over the past year EMD returned +16.22% vs +30.42% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), EMD annualized -0.33% vs +11.34% for SCHD. Past performance does not guarantee future results.
Which is riskier, EMD or SCHD?
EMD has been the more volatile fund at 17.2% annualized versus 13.6% for SCHD. Worst drawdown: EMD -64.5% vs SCHD -33.4%.
Should I hold both EMD and SCHD?
EMD and SCHD have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EMD and SCHD?
EMD and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 236 unique securities.
Which pays a higher dividend, EMD or SCHD?
EMD yields 9.68% while SCHD yields 3.31%, so EMD currently pays the higher dividend yield.
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