RAVI vs SCHD
RAVI vs SCHD
FlexShares Ultra Short Income Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. RAVI offers more diversification with 195 holdings.
Side-by-Side Comparison
| Metric | RAVI | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.06% | |
| AUM | $1.5B | $103.7B | |
| Dividend Yield | 4.37% | 3.31% | |
| Holdings | 254 | 104 | |
| YTD Return | +1.85% | +24.26% | |
| 1Y Return | +3.79% | +31.38% | |
| 3Y Return (annualized) | +4.96% | +15.08% | |
| 5Y Return (annualized) | +3.56% | +9.72% | |
| Volatility (annualized) | 1.2% | 13.6% | |
| Max Drawdown | -3.8% | -33.4% | |
| Fund Family | Flexshares Trust | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Oct 9, 2012 | Oct 20, 2011 |
RAVI vs SCHD Performance
FlexShares Ultra Short Income Fund (RAVI) is a ETF from Flexshares Trust and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year RAVI returned +3.79% while SCHD returned +31.38%. Year to date, RAVI is up 1.85% versus a gain of 24.26% for SCHD.
Over three years, RAVI compounded at +4.96% per year against +15.08% for SCHD; over five years the annualized figures are +3.56% and +9.72% respectively. Across the full 14-year window we track, SCHD has the edge at +11.39% annualized vs +1.40%. 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 1.2% for RAVI. 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 -3.8% for RAVI 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
RAVI charges 0.25% per year while SCHD charges 0.06%. On a $10,000 position that is $25 vs $6 annually, a gap of $19 per year that compounds over a long holding period. On income, RAVI currently yields 4.37% against 3.31% for SCHD.
Holdings Overlap
RAVI and SCHD share 0 holdings out of 295 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, RAVI or SCHD?
RAVI has an expense ratio of 0.25% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, RAVI or SCHD?
Over the past year RAVI returned +3.79% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (14 years), RAVI annualized +1.40% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, RAVI or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 1.2% for RAVI. Worst drawdown: RAVI -3.8% vs SCHD -33.4%.
Should I hold both RAVI and SCHD?
RAVI and SCHD have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RAVI and SCHD?
RAVI and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 295 unique securities.
Which pays a higher dividend, RAVI or SCHD?
RAVI yields 4.37% while SCHD yields 3.31%, so RAVI currently pays the higher dividend yield.
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