EDD vs SCHD
Morgan Stanley Emerging Markets Domestic Debt Fund Inc. vs Schwab US Dividend Equity ETF
Which is better, EDD or SCHD?
Emerging Markets Bond against Large Cap Value.
SCHD has a lower expense ratio. EDD led over 3Y, SCHD over 1Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | EDD | SCHD |
|---|---|---|
| Expense Ratio | 1.90% | 0.06%Best |
| AUM | - | $112.1B |
| Dividend Yield | 10.73% | 3.00% |
| Holdings | 684 | 103 |
| YTD Return | +10.01% | +24.23%Best |
| 1Y Return | +12.45% | +27.90%Best |
| 3Y Return (annualized) | +18.43%Best | +15.55% |
| 5Y Return (annualized) | +7.87% | +9.97%Best |
| Volatility (annualized) | 17.8% | 13.6%Best |
| Max Drawdown | -77.2% | -33.4%Best |
| $10,000 over 5 years | $14,605 | $16,083Best |
| Fund Family | Morgan Stanley Investment Management | Charles Schwab Asset Management |
| Category | Fixed Income | Equity |
| Style | Emerging Markets Bond | Large Cap Value |
| Inception | Apr 24, 2007 | Oct 20, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 17, 2026 (14.9 years).
EDD vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 14.9 years both funds cover.
EDD vs SCHD Performance
Morgan Stanley Emerging Markets Domestic Debt Fund Inc. (EDD) is an ETF from Morgan Stanley Investment Management and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year EDD returned +12.45% while SCHD returned +27.90%. Year to date, EDD is up 10.01% versus a gain of 24.23% for SCHD.
Over three years, EDD compounded at +18.43% per year against +15.55% for SCHD; over five years the annualized figures are +7.87% and +9.97% respectively. Across the full 15-year window we track, SCHD has the edge at +11.30% annualized vs -3.31%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EDD has been the more volatile fund, with annualized monthly volatility of 17.8% 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 -77.2% for EDD and -33.4% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.55. They move together some of the time, and apart the rest.
Fees and Cost Over Time
EDD charges 1.90% per year while SCHD charges 0.06%. On a $10,000 position that is $190 vs $6 annually, a gap of $184 per year that compounds over a long holding period. On income, EDD currently yields 10.73% against 3.00% for SCHD.
Holdings Overlap
We hold position weights for 9 holdings in EDD and 100 in SCHD, totalling 4.1% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 212 days apart, EDD as of Jan 31, 2026 and SCHD as of Aug 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 9 positions we hold weights for in EDD and 100 in SCHD, against full books of 684 and 103.
You are not choosing between two funds in isolation.
Whichever of EDD and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, EDD or SCHD?
EDD has an expense ratio of 1.90% while SCHD charges 0.06%. SCHD is the cheaper option, by $184 a year on a $10,000 investment.
Which performed better, EDD or SCHD?
Over the past year EDD returned +12.45% vs +27.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), EDD annualized -3.31% vs +11.30% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, EDD or SCHD?
EDD has been the more volatile fund at 17.8% annualized versus 13.6% for SCHD. Worst drawdown: EDD -77.2% vs SCHD -33.4%.
Should I hold both EDD and SCHD?
EDD and SCHD have a monthly-return correlation of 0.55, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, EDD or SCHD?
EDD yields 10.73% while SCHD yields 3.00%, so EDD currently pays the higher dividend yield.
Is SCHD better than EDD?
SCHD has a lower expense ratio. EDD led over 3Y, SCHD over 1Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.