KAT vs SCHD
Scharf ETF 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 100 holdings.
Side-by-Side Comparison
| Metric | KAT | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.06% | |
| AUM | $675M | $103.7B | |
| Dividend Yield | 0.48% | 3.31% | |
| Holdings | 38 | 104 | |
| YTD Return | +6.96% | +25.62% | |
| 1Y Return | +8.03% | +32.62% | |
| 3Y Return (annualized) | - | +15.58% | |
| 5Y Return (annualized) | - | +9.63% | |
| Volatility (annualized) | 12.7% | 13.6% | |
| Max Drawdown | -9.3% | -33.4% | |
| Fund Family | Scharf Funds | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Dec 30, 2011 | Oct 20, 2011 |
KAT vs SCHD Performance
Scharf ETF (KAT) is a ETF from Scharf Funds and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year KAT returned +8.03% while SCHD returned +32.62%. Year to date, KAT is up 6.96% versus a gain of 25.62% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 12.7% for KAT. 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 -9.3% for KAT 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KAT charges 0.75% per year while SCHD charges 0.06%. On a $10,000 position that is $75 vs $6 annually, a gap of $69 per year that compounds over a long holding period. On income, KAT currently yields 0.48% against 3.31% for SCHD.
Holdings Overlap
KAT and SCHD share 3 holdings out of 130 unique holdings combined, representing a 4.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, KAT or SCHD?
KAT has an expense ratio of 0.75% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $69 per year of difference.
Which performed better, KAT or SCHD?
Over the past year KAT returned +8.03% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Past performance does not guarantee future results.
Which is riskier, KAT or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 12.7% for KAT. Worst drawdown: KAT -9.3% vs SCHD -33.4%.
Should I hold both KAT and SCHD?
KAT and SCHD have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KAT and SCHD?
KAT and SCHD share 3 common holdings with a 4.7% weight overlap. Combined, they hold 130 unique securities.
Which pays a higher dividend, KAT or SCHD?
KAT yields 0.48% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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