SCHD vs WDI
SCHD vs WDI
Schwab US Dividend Equity ETF vs Western Asset Diversified Income Fund
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. WDI offers more diversification with 192 holdings.
Side-by-Side Comparison
| Metric | SCHD | WDI | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 1.82% | |
| AUM | $103.7B | $723M | |
| Dividend Yield | 3.31% | 12.55% | |
| Holdings | 104 | 410 | |
| YTD Return | +23.31% | +1.81% | |
| 1Y Return | +30.42% | -0.60% | |
| 3Y Return (annualized) | +14.66% | +10.76% | |
| 5Y Return (annualized) | +9.59% | +2.56% | |
| Volatility (annualized) | 13.6% | 13.9% | |
| Max Drawdown | -33.4% | -32.5% | |
| Fund Family | Charles Schwab Asset Management | Franklin Templeton Investments (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Jun 24, 2021 |
SCHD vs WDI Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Western Asset Diversified Income Fund (WDI) is a ETF from Franklin Templeton Investments (US). Over the past year SCHD returned +30.42% while WDI returned -0.60%. Year to date, SCHD is up 23.31% versus a gain of 1.81% for WDI.
Over three years, SCHD compounded at +14.66% per year against +10.76% for WDI; over five years the annualized figures are +9.59% and +2.56% respectively. Across the full 5-year window we track, SCHD has the edge at +11.34% annualized vs +2.81%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
WDI has been the more volatile fund, with annualized monthly volatility of 13.9% 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 -32.5% for WDI. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while WDI charges 1.82%. On a $10,000 position that is $6 vs $182 annually, a gap of $176 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 12.55% for WDI.
Holdings Overlap
SCHD and WDI share 0 holdings out of 292 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 WDI?
SCHD has an expense ratio of 0.06% while WDI charges 1.82%. SCHD is the cheaper option. On a $10,000 investment, that is $176 per year of difference.
Which performed better, SCHD or WDI?
Over the past year SCHD returned +30.42% vs -0.60% for WDI, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), SCHD annualized +11.34% vs +2.81% for WDI. Past performance does not guarantee future results.
Which is riskier, SCHD or WDI?
WDI has been the more volatile fund at 13.9% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs WDI -32.5%.
Should I hold both SCHD and WDI?
SCHD and WDI have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and WDI?
SCHD and WDI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 292 unique securities.
Which pays a higher dividend, SCHD or WDI?
SCHD yields 3.31% while WDI yields 12.55%, so WDI currently pays the higher dividend yield.
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