GDO vs SCHD
GDO vs SCHD
Western Asset Global Corporate Defined Opportunity Fund Inc. vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. GDO offers more diversification with 213 holdings.
Side-by-Side Comparison
| Metric | GDO | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.20% | 0.06% | |
| AUM | $84M | $103.7B | |
| Dividend Yield | 12.86% | 3.31% | |
| Holdings | 330 | 104 | |
| YTD Return | -6.16% | +22.69% | |
| 1Y Return | -0.53% | +30.94% | |
| 3Y Return (annualized) | +5.43% | +14.20% | |
| 5Y Return (annualized) | -1.18% | +9.59% | |
| Volatility (annualized) | 12.7% | 13.7% | |
| Max Drawdown | -41.8% | -33.4% | |
| Fund Family | Franklin Templeton Investments (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Nov 24, 2009 | Oct 20, 2011 |
GDO vs SCHD Performance
Western Asset Global Corporate Defined Opportunity Fund Inc. (GDO) 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 GDO returned -0.53% while SCHD returned +30.94%. Year to date, GDO is down 6.16% versus a gain of 22.69% for SCHD.
Over three years, GDO compounded at +5.43% per year against +14.20% for SCHD; over five years the annualized figures are -1.18% and +9.59% respectively. Across the full 15-year window we track, SCHD has the edge at +11.31% annualized vs -0.63%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 12.7% for GDO. 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 -41.8% for GDO 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
GDO charges 1.20% per year while SCHD charges 0.06%. On a $10,000 position that is $120 vs $6 annually, a gap of $114 per year that compounds over a long holding period. On income, GDO currently yields 12.86% against 3.31% for SCHD.
Holdings Overlap
GDO and SCHD share 0 holdings out of 313 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, GDO or SCHD?
GDO has an expense ratio of 1.20% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $114 per year of difference.
Which performed better, GDO or SCHD?
Over the past year GDO returned -0.53% vs +30.94% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), GDO annualized -0.63% vs +11.31% for SCHD. Past performance does not guarantee future results.
Which is riskier, GDO or SCHD?
SCHD has been the more volatile fund at 13.7% annualized versus 12.7% for GDO. Worst drawdown: GDO -41.8% vs SCHD -33.4%.
Should I hold both GDO and SCHD?
GDO 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 GDO and SCHD?
GDO and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 313 unique securities.
Which pays a higher dividend, GDO or SCHD?
GDO yields 12.86% while SCHD yields 3.31%, so GDO currently pays the higher dividend yield.
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