HYI vs SCHD
Western Asset High Yield Defined Opportunity Fund Inc. vs Schwab US Dividend Equity ETF
Which is better, HYI or SCHD?
High Yield Bond against Large Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 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 | HYI | SCHD |
|---|---|---|
| Expense Ratio | 0.96% | 0.06%Best |
| AUM | $145M | $112.1B |
| Dividend Yield | 10.04% | 3.00% |
| Holdings | 258 | 103 |
| YTD Return | -2.29% | +23.46%Best |
| 1Y Return | -6.59% | +27.20%Best |
| 3Y Return (annualized) | +5.58% | +15.41%Best |
| 5Y Return (annualized) | +0.59% | +10.16%Best |
| Volatility (annualized) | 12.1%Best | 13.7% |
| Max Drawdown | -48.2% | -33.4%Best |
| $10,000 over 5 years | $10,299 | $16,223Best |
| Fund Family | Franklin Templeton Investments (US) | Charles Schwab Asset Management |
| Category | Fixed Income | Equity |
| Style | High Yield Bond | Large Cap Value |
| Inception | Oct 27, 2010 | 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 18, 2026 (14.9 years).
HYI 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
HYI vs SCHD Performance
Western Asset High Yield Defined Opportunity Fund Inc. (HYI) is an ETF from Franklin Templeton Investments (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year HYI returned -6.59% while SCHD returned +27.20%. Year to date, HYI is down 2.29% versus a gain of 23.46% for SCHD.
Over three years, HYI compounded at +5.58% per year against +15.41% for SCHD; over five years the annualized figures are +0.59% and +10.16% respectively. Across the full 15-year window we track, SCHD has the edge at +11.25% annualized vs +0.05%.
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 12.1% for HYI. 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 -48.2% for HYI 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 0.62. They move together some of the time, and apart the rest.
Fees and Cost Over Time
HYI charges 0.96% per year while SCHD charges 0.06%. On a $10,000 position that is $96 vs $6 annually, a gap of $90 per year that compounds over a long holding period. On income, HYI currently yields 10.04% against 3.00% for SCHD.
Holdings Overlap
We hold position weights for 191 holdings in HYI and 100 in SCHD, totalling 80.1% 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 213 days apart, HYI as of Jan 30, 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 191 positions we hold weights for in HYI and 100 in SCHD, against full books of 258 and 103.
You are not choosing between two funds in isolation.
Whichever of HYI 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, HYI or SCHD?
HYI has an expense ratio of 0.96% while SCHD charges 0.06%. SCHD is the cheaper option, by $90 a year on a $10,000 investment.
Which performed better, HYI or SCHD?
Over the past year HYI returned -6.59% vs +27.20% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), HYI annualized +0.05% vs +11.25% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, HYI or SCHD?
SCHD has been the more volatile fund at 13.7% annualized versus 12.1% for HYI. Worst drawdown: HYI -48.2% vs SCHD -33.4%.
Should I hold both HYI and SCHD?
HYI and SCHD have a monthly-return correlation of 0.62, 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, HYI or SCHD?
HYI yields 10.04% while SCHD yields 3.00%, so HYI currently pays the higher dividend yield.
Is SCHD better than HYI?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.