PAI vs SCHD
PAI vs SCHD
Western Asset Investment Grade Income Fund Inc. vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. PAI offers more diversification with 321 holdings.
Side-by-Side Comparison
| Metric | PAI | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.73% | 0.06% | |
| AUM | $123M | $103.7B | |
| Dividend Yield | 4.81% | 3.31% | |
| Holdings | 476 | 104 | |
| YTD Return | -1.98% | +23.31% | |
| 1Y Return | -2.57% | +30.42% | |
| 3Y Return (annualized) | +6.20% | +14.66% | |
| 5Y Return (annualized) | -0.97% | +9.59% | |
| Volatility (annualized) | 12.6% | 13.6% | |
| Max Drawdown | -49.6% | -33.4% | |
| Fund Family | Franklin Templeton Investments (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Mar 22, 1973 | Oct 20, 2011 |
PAI vs SCHD Performance
Western Asset Investment Grade Income Fund Inc. (PAI) 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 PAI returned -2.57% while SCHD returned +30.42%. Year to date, PAI is down 1.98% versus a gain of 23.31% for SCHD.
Over three years, PAI compounded at +6.20% per year against +14.66% for SCHD; over five years the annualized figures are -0.97% and +9.59% respectively. Across the full 15-year window we track, SCHD has the edge at +11.34% annualized vs +0.09%. 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 12.6% for PAI. 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 -49.6% for PAI 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PAI charges 0.73% per year while SCHD charges 0.06%. On a $10,000 position that is $73 vs $6 annually, a gap of $67 per year that compounds over a long holding period. On income, PAI currently yields 4.81% against 3.31% for SCHD.
Holdings Overlap
PAI and SCHD share 0 holdings out of 421 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, PAI or SCHD?
PAI has an expense ratio of 0.73% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $67 per year of difference.
Which performed better, PAI or SCHD?
Over the past year PAI returned -2.57% vs +30.42% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), PAI annualized +0.09% vs +11.34% for SCHD. Past performance does not guarantee future results.
Which is riskier, PAI or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 12.6% for PAI. Worst drawdown: PAI -49.6% vs SCHD -33.4%.
Should I hold both PAI and SCHD?
PAI and SCHD have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PAI and SCHD?
PAI and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 421 unique securities.
Which pays a higher dividend, PAI or SCHD?
PAI yields 4.81% while SCHD yields 3.31%, so PAI currently pays the higher dividend yield.
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