HIX vs SCHD
HIX vs SCHD
Western Asset High Income Fund II Inc. vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. HIX offers more diversification with 288 holdings.
Side-by-Side Comparison
| Metric | HIX | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 3.82% | 0.06% | |
| AUM | $363M | $103.7B | |
| Dividend Yield | 14.27% | 3.31% | |
| Holdings | 437 | 104 | |
| YTD Return | +2.33% | +23.31% | |
| 1Y Return | +6.90% | +30.42% | |
| 3Y Return (annualized) | +6.00% | +14.66% | |
| 5Y Return (annualized) | -0.71% | +9.59% | |
| Volatility (annualized) | 18.7% | 13.6% | |
| Max Drawdown | -75.2% | -33.4% | |
| Fund Family | Franklin Templeton Investments (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | May 22, 1998 | Oct 20, 2011 |
HIX vs SCHD Performance
Western Asset High Income Fund II Inc. (HIX) 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 HIX returned +6.90% while SCHD returned +30.42%. Year to date, HIX is up 2.33% versus a gain of 23.31% for SCHD.
Over three years, HIX compounded at +6.00% per year against +14.66% for SCHD; over five years the annualized figures are -0.71% and +9.59% respectively. Across the full 15-year window we track, SCHD has the edge at +11.34% annualized vs -2.37%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HIX has been the more volatile fund, with annualized monthly volatility of 18.7% 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 -75.2% for HIX 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HIX charges 3.82% per year while SCHD charges 0.06%. On a $10,000 position that is $382 vs $6 annually, a gap of $376 per year that compounds over a long holding period. On income, HIX currently yields 14.27% against 3.31% for SCHD.
Holdings Overlap
HIX and SCHD share 0 holdings out of 388 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, HIX or SCHD?
HIX has an expense ratio of 3.82% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $376 per year of difference.
Which performed better, HIX or SCHD?
Over the past year HIX returned +6.90% vs +30.42% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), HIX annualized -2.37% vs +11.34% for SCHD. Past performance does not guarantee future results.
Which is riskier, HIX or SCHD?
HIX has been the more volatile fund at 18.7% annualized versus 13.6% for SCHD. Worst drawdown: HIX -75.2% vs SCHD -33.4%.
Should I hold both HIX and SCHD?
HIX and SCHD have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HIX and SCHD?
HIX and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 388 unique securities.
Which pays a higher dividend, HIX or SCHD?
HIX yields 14.27% while SCHD yields 3.31%, so HIX currently pays the higher dividend yield.
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