MSD vs SCHD
MSD vs SCHD
Morgan Stanley 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. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | MSD | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.19% | 0.06% | |
| AUM | - | $103.7B | |
| Dividend Yield | 7.66% | 3.31% | |
| Holdings | 358 | 104 | |
| YTD Return | +2.36% | +22.69% | |
| 1Y Return | +5.66% | +30.94% | |
| 3Y Return (annualized) | +15.09% | +14.20% | |
| 5Y Return (annualized) | +3.91% | +9.59% | |
| Volatility (annualized) | 18.4% | 13.7% | |
| Max Drawdown | -66.0% | -33.4% | |
| Fund Family | Morgan Stanley Investment Management | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Jul 23, 1993 | Oct 20, 2011 |
MSD vs SCHD Performance
Morgan Stanley Emerging Markets Debt Fund Inc. (MSD) 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 MSD returned +5.66% while SCHD returned +30.94%. Year to date, MSD is up 2.36% versus a gain of 22.69% for SCHD.
Over three years, MSD compounded at +15.09% per year against +14.20% for SCHD; over five years the annualized figures are +3.91% and +9.59% respectively. Across the full 15-year window we track, SCHD has the edge at +11.31% annualized vs -0.28%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MSD has been the more volatile fund, with annualized monthly volatility of 18.4% compared with 13.7% 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 -66.0% for MSD 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MSD charges 1.19% per year while SCHD charges 0.06%. On a $10,000 position that is $119 vs $6 annually, a gap of $113 per year that compounds over a long holding period. On income, MSD currently yields 7.66% against 3.31% for SCHD.
Holdings Overlap
MSD and SCHD share 0 holdings out of 153 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, MSD or SCHD?
MSD has an expense ratio of 1.19% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $113 per year of difference.
Which performed better, MSD or SCHD?
Over the past year MSD returned +5.66% vs +30.94% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), MSD annualized -0.28% vs +11.31% for SCHD. Past performance does not guarantee future results.
Which is riskier, MSD or SCHD?
MSD has been the more volatile fund at 18.4% annualized versus 13.7% for SCHD. Worst drawdown: MSD -66.0% vs SCHD -33.4%.
Should I hold both MSD and SCHD?
MSD and SCHD have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MSD and SCHD?
MSD and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 153 unique securities.
Which pays a higher dividend, MSD or SCHD?
MSD yields 7.66% while SCHD yields 3.31%, so MSD currently pays the higher dividend yield.
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