IIF vs SCHD
Morgan Stanley India Investment Fund Inc. vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | IIF | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.28% | 0.06% | |
| AUM | $318M | $108.7B | |
| Dividend Yield | 7.69% | 3.13% | |
| Holdings | 46 | 104 | |
| YTD Return | -8.31% | +28.63% | |
| 1Y Return | -9.12% | +32.53% | |
| 3Y Return (annualized) | +12.76% | +16.97% | |
| 5Y Return (annualized) | +8.52% | +10.47% | |
| Volatility (annualized) | 31.0% | 13.7% | |
| Max Drawdown | -62.1% | -33.4% | |
| Fund Family | Morgan Stanley Investment Management | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Feb 25, 1994 | Oct 20, 2011 |
IIF vs SCHD Performance
Morgan Stanley India Investment Fund Inc. (IIF) is a ETF from Morgan Stanley Investment Management and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year IIF returned -9.12% while SCHD returned +32.53%. Year to date, IIF is down 8.31% versus a gain of 28.63% for SCHD.
Over three years, IIF compounded at +12.76% per year against +16.97% for SCHD; over five years the annualized figures are +8.52% and +10.47% respectively. Across the full 15-year window we track, IIF has the edge at +17.66% annualized vs +11.63%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IIF has been the more volatile fund, with annualized monthly volatility of 31.0% compared with 13.7% 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 -62.1% for IIF 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IIF charges 1.28% per year while SCHD charges 0.06%. On a $10,000 position that is $128 vs $6 annually, a gap of $122 per year that compounds over a long holding period. On income, IIF currently yields 7.69% against 3.13% for SCHD.
Holdings Overlap
IIF and SCHD share 0 holdings out of 146 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, IIF or SCHD?
IIF has an expense ratio of 1.28% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $122 per year of difference.
Which performed better, IIF or SCHD?
Over the past year IIF returned -9.12% vs +32.53% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), IIF annualized +17.66% vs +11.63% for SCHD. Past performance does not guarantee future results.
Which is riskier, IIF or SCHD?
IIF has been the more volatile fund at 31.0% annualized versus 13.7% for SCHD. Worst drawdown: IIF -62.1% vs SCHD -33.4%.
Should I hold both IIF and SCHD?
IIF and SCHD have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IIF and SCHD?
IIF and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 146 unique securities.
Which pays a higher dividend, IIF or SCHD?
IIF yields 7.69% while SCHD yields 3.13%, so IIF currently pays the higher dividend yield.
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