IGI vs SCHD
Western Asset Investment Grade Defined Opportunity Trust Inc. vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. IGI offers more diversification with 285 holdings.
Side-by-Side Comparison
| Metric | IGI | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.06% | |
| AUM | $102M | $103.7B | |
| Dividend Yield | 4.91% | 3.31% | |
| Holdings | 415 | 104 | |
| YTD Return | -0.95% | +25.33% | |
| 1Y Return | +0.77% | +32.31% | |
| 3Y Return (annualized) | +4.26% | +15.40% | |
| 5Y Return (annualized) | -1.71% | +9.70% | |
| Volatility (annualized) | 11.2% | 13.6% | |
| Max Drawdown | -34.0% | -33.4% | |
| Fund Family | Franklin Templeton Investments (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Jun 26, 2009 | Oct 20, 2011 |
IGI vs SCHD Performance
Western Asset Investment Grade Defined Opportunity Trust Inc. (IGI) is a ETF from Franklin Templeton Investments (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year IGI returned +0.77% while SCHD returned +32.31%. Year to date, IGI is down 0.95% versus a gain of 25.33% for SCHD.
Over three years, IGI compounded at +4.26% per year against +15.40% for SCHD; over five years the annualized figures are -1.71% and +9.70% respectively. Across the full 15-year window we track, SCHD has the edge at +11.45% annualized vs +0.16%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 11.2% for IGI. 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 -34.0% for IGI and -33.4% for SCHD. 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IGI charges 0.85% per year while SCHD charges 0.06%. On a $10,000 position that is $85 vs $6 annually, a gap of $79 per year that compounds over a long holding period. On income, IGI currently yields 4.91% against 3.31% for SCHD.
Holdings Overlap
IGI and SCHD share 0 holdings out of 385 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, IGI or SCHD?
IGI has an expense ratio of 0.85% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $79 per year of difference.
Which performed better, IGI or SCHD?
Over the past year IGI returned +0.77% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), IGI annualized +0.16% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, IGI or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 11.2% for IGI. Worst drawdown: IGI -34.0% vs SCHD -33.4%.
Should I hold both IGI and SCHD?
IGI and SCHD have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IGI and SCHD?
IGI and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 385 unique securities.
Which pays a higher dividend, IGI or SCHD?
IGI yields 4.91% while SCHD yields 3.31%, so IGI currently pays the higher dividend yield.
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