SCHD vs TSI
SCHD vs TSI
Schwab US Dividend Equity ETF vs TCW Strategic Income Fund Inc.
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. TSI offers more diversification with 247 holdings.
Side-by-Side Comparison
| Metric | SCHD | TSI | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 1.03% | |
| AUM | $103.7B | - | |
| Dividend Yield | 3.31% | 6.21% | |
| Holdings | 104 | 746 | |
| YTD Return | +23.02% | -7.05% | |
| 1Y Return | +30.75% | -3.71% | |
| 3Y Return (annualized) | +14.89% | +5.96% | |
| 5Y Return (annualized) | +9.38% | +1.72% | |
| Volatility (annualized) | 13.6% | 18.3% | |
| Max Drawdown | -33.4% | -83.3% | |
| Fund Family | Charles Schwab Asset Management | TCW Funds | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Mar 5, 1987 |
SCHD vs TSI Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and TCW Strategic Income Fund Inc. (TSI) is a ETF from TCW Funds. Over the past year SCHD returned +30.75% while TSI returned -3.71%. Year to date, SCHD is up 23.02% versus a loss of 7.05% for TSI.
Over three years, SCHD compounded at +14.89% per year against +5.96% for TSI; over five years the annualized figures are +9.38% and +1.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.33% annualized vs +0.20%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TSI has been the more volatile fund, with annualized monthly volatility of 18.3% compared with 13.6% 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 -33.4% for SCHD and -83.3% for TSI. 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TSI charges 1.03%. On a $10,000 position that is $6 vs $103 annually, a gap of $97 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 6.21% for TSI.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, SCHD or TSI?
SCHD has an expense ratio of 0.06% while TSI charges 1.03%. SCHD is the cheaper option. On a $10,000 investment, that is $97 per year of difference.
Which performed better, SCHD or TSI?
Over the past year SCHD returned +30.75% vs -3.71% for TSI, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.33% vs +0.20% for TSI. Past performance does not guarantee future results.
Which is riskier, SCHD or TSI?
TSI has been the more volatile fund at 18.3% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TSI -83.3%.
Should I hold both SCHD and TSI?
SCHD and TSI have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TSI?
SCHD and TSI share 2 common holdings with a 0.3% weight overlap. Combined, they hold 345 unique securities.
Which pays a higher dividend, SCHD or TSI?
SCHD yields 3.31% while TSI yields 6.21%, so TSI currently pays the higher dividend yield.
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