SCHD vs SDSI
SCHD vs SDSI
Schwab US Dividend Equity ETF vs American Century Short Duration Strategic Income ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SDSI offers more diversification with 142 holdings.
Side-by-Side Comparison
| Metric | SCHD | SDSI | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.32% | |
| AUM | $103.7B | $245M | |
| Dividend Yield | 3.31% | 4.78% | |
| Holdings | 104 | 400 | |
| YTD Return | +22.69% | +1.57% | |
| 1Y Return | +30.94% | +4.49% | |
| 3Y Return (annualized) | +14.20% | +5.83% | |
| 5Y Return (annualized) | +9.59% | - | |
| Volatility (annualized) | 13.7% | 1.9% | |
| Max Drawdown | -33.4% | -1.3% | |
| Fund Family | Charles Schwab Asset Management | American Century Investments | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Oct 11, 2022 |
SCHD vs SDSI Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and American Century Short Duration Strategic Income ETF (SDSI) is a ETF from American Century Investments. Over the past year SCHD returned +30.94% while SDSI returned +4.49%. Year to date, SCHD is up 22.69% versus a gain of 1.57% for SDSI.
Over three years, SCHD compounded at +14.20% per year against +5.83% for SDSI. Across the full 4-year window we track, SCHD has the edge at +11.31% annualized vs +5.63%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 1.9% for SDSI. 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 -33.4% for SCHD and -1.3% for SDSI. 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SDSI charges 0.32%. On a $10,000 position that is $6 vs $32 annually, a gap of $26 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 4.78% for SDSI.
Holdings Overlap
SCHD and SDSI share 0 holdings out of 242 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, SCHD or SDSI?
SCHD has an expense ratio of 0.06% while SDSI charges 0.32%. SCHD is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, SCHD or SDSI?
Over the past year SCHD returned +30.94% vs +4.49% for SDSI, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), SCHD annualized +11.31% vs +5.63% for SDSI. Past performance does not guarantee future results.
Which is riskier, SCHD or SDSI?
SCHD has been the more volatile fund at 13.7% annualized versus 1.9% for SDSI. Worst drawdown: SCHD -33.4% vs SDSI -1.3%.
Should I hold both SCHD and SDSI?
SCHD and SDSI have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SDSI?
SCHD and SDSI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 242 unique securities.
Which pays a higher dividend, SCHD or SDSI?
SCHD yields 3.31% while SDSI yields 4.78%, so SDSI currently pays the higher dividend yield.
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