MSTI vs SCHD
MSTI vs SCHD
Madison Short-Term Strategic Income ETF 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 | MSTI | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.36% | 0.06% | |
| AUM | $49M | $103.7B | |
| Dividend Yield | 5.33% | 3.31% | |
| Holdings | 99 | 104 | |
| YTD Return | +0.68% | +23.02% | |
| 1Y Return | +2.87% | +30.75% | |
| 3Y Return (annualized) | +5.79% | +14.89% | |
| 5Y Return (annualized) | - | +9.38% | |
| Volatility (annualized) | 2.5% | 13.6% | |
| Max Drawdown | -1.5% | -33.4% | |
| Fund Family | Madison Funds | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 5, 2023 | Oct 20, 2011 |
MSTI vs SCHD Performance
Madison Short-Term Strategic Income ETF (MSTI) is a ETF from Madison Funds and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MSTI returned +2.87% while SCHD returned +30.75%. Year to date, MSTI is up 0.68% versus a gain of 23.02% for SCHD.
Over three years, MSTI compounded at +5.79% per year against +14.89% for SCHD. Across the full 3-year window we track, SCHD has the edge at +11.33% annualized vs +5.79%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 2.5% for MSTI. 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 -1.5% for MSTI 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MSTI charges 0.36% per year while SCHD charges 0.06%. On a $10,000 position that is $36 vs $6 annually, a gap of $30 per year that compounds over a long holding period. On income, MSTI currently yields 5.33% against 3.31% for SCHD.
Holdings Overlap
MSTI and SCHD share 0 holdings out of 156 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, MSTI or SCHD?
MSTI has an expense ratio of 0.36% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $30 per year of difference.
Which performed better, MSTI or SCHD?
Over the past year MSTI returned +2.87% vs +30.75% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), MSTI annualized +5.79% vs +11.33% for SCHD. Past performance does not guarantee future results.
Which is riskier, MSTI or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 2.5% for MSTI. Worst drawdown: MSTI -1.5% vs SCHD -33.4%.
Should I hold both MSTI and SCHD?
MSTI and SCHD have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MSTI and SCHD?
MSTI and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 156 unique securities.
Which pays a higher dividend, MSTI or SCHD?
MSTI yields 5.33% while SCHD yields 3.31%, so MSTI currently pays the higher dividend yield.
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