SCHD vs WEA
SCHD vs WEA
Schwab US Dividend Equity ETF vs Western Asset Premier Bond Fund
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. WEA offers more diversification with 246 holdings.
Side-by-Side Comparison
| Metric | SCHD | WEA | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 1.22% | |
| AUM | $103.7B | $132M | |
| Dividend Yield | 3.31% | 7.44% | |
| Holdings | 104 | 386 | |
| YTD Return | +23.31% | -1.61% | |
| 1Y Return | +30.42% | +4.17% | |
| 3Y Return (annualized) | +14.66% | +6.66% | |
| 5Y Return (annualized) | +9.59% | +0.51% | |
| Volatility (annualized) | 13.6% | 15.7% | |
| Max Drawdown | -33.4% | -64.9% | |
| Fund Family | Charles Schwab Asset Management | Franklin Templeton Investments (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Mar 28, 2002 |
SCHD vs WEA Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Western Asset Premier Bond Fund (WEA) is a ETF from Franklin Templeton Investments (US). Over the past year SCHD returned +30.42% while WEA returned +4.17%. Year to date, SCHD is up 23.31% versus a loss of 1.61% for WEA.
Over three years, SCHD compounded at +14.66% per year against +6.66% for WEA; over five years the annualized figures are +9.59% and +0.51% respectively. Across the full 15-year window we track, SCHD has the edge at +11.34% annualized vs +0.16%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
WEA has been the more volatile fund, with annualized monthly volatility of 15.7% 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 -64.9% for WEA. 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while WEA charges 1.22%. On a $10,000 position that is $6 vs $122 annually, a gap of $116 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 7.44% for WEA.
Holdings Overlap
SCHD and WEA share 0 holdings out of 346 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 WEA?
SCHD has an expense ratio of 0.06% while WEA charges 1.22%. SCHD is the cheaper option. On a $10,000 investment, that is $116 per year of difference.
Which performed better, SCHD or WEA?
Over the past year SCHD returned +30.42% vs +4.17% for WEA, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.34% vs +0.16% for WEA. Past performance does not guarantee future results.
Which is riskier, SCHD or WEA?
WEA has been the more volatile fund at 15.7% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs WEA -64.9%.
Should I hold both SCHD and WEA?
SCHD and WEA have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and WEA?
SCHD and WEA share 0 common holdings with a 0.0% weight overlap. Combined, they hold 346 unique securities.
Which pays a higher dividend, SCHD or WEA?
SCHD yields 3.31% while WEA yields 7.44%, so WEA currently pays the higher dividend yield.
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