KCAI vs SCHD
KraneShares China Alpha Index ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. KCAI delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | KCAI | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.79% | 0.06% | |
| AUM | $3M | $108.7B | |
| Dividend Yield | 32.81% | 3.13% | |
| Holdings | 42 | 104 | |
| YTD Return | +6.72% | +26.50% | |
| 1Y Return | +34.74% | +31.25% | |
| 3Y Return (annualized) | - | +16.34% | |
| 5Y Return (annualized) | - | +10.10% | |
| Volatility (annualized) | 17.0% | 13.6% | |
| Max Drawdown | -26.6% | -33.4% | |
| Fund Family | KraneShares | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Aug 28, 2024 | Oct 20, 2011 |
KCAI vs SCHD Performance
KraneShares China Alpha Index ETF (KCAI) is a ETF from KraneShares and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year KCAI returned +34.74% while SCHD returned +31.25%. Year to date, KCAI is up 6.72% versus a gain of 26.50% for SCHD.
Risk: Volatility and Drawdowns
KCAI has been the more volatile fund, with annualized monthly volatility of 17.0% 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 -26.6% for KCAI 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 0.22. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KCAI charges 0.79% per year while SCHD charges 0.06%. On a $10,000 position that is $79 vs $6 annually, a gap of $73 per year that compounds over a long holding period. On income, KCAI currently yields 32.81% against 3.13% for SCHD.
Holdings Overlap
KCAI and SCHD share 0 holdings out of 140 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, KCAI or SCHD?
KCAI has an expense ratio of 0.79% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $73 per year of difference.
Which performed better, KCAI or SCHD?
Over the past year KCAI returned +34.74% vs +31.25% for SCHD, so KCAI leads on 1-year performance. Over the longest common window we track (2 years), KCAI annualized +35.34% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, KCAI or SCHD?
KCAI has been the more volatile fund at 17.0% annualized versus 13.6% for SCHD. Worst drawdown: KCAI -26.6% vs SCHD -33.4%.
Should I hold both KCAI and SCHD?
KCAI and SCHD have a monthly-return correlation of 0.22, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KCAI and SCHD?
KCAI and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 140 unique securities.
Which pays a higher dividend, KCAI or SCHD?
KCAI yields 32.81% while SCHD yields 3.13%, so KCAI currently pays the higher dividend yield.
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