KIO vs SCHD
KKR Income Opportunities Fund 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 | KIO | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 4.59% | 0.06% | |
| AUM | $488M | $103.7B | |
| Dividend Yield | 12.12% | 3.31% | |
| Holdings | 327 | 104 | |
| YTD Return | +3.80% | +24.26% | |
| 1Y Return | -1.56% | +31.38% | |
| 3Y Return (annualized) | +9.38% | +15.08% | |
| 5Y Return (annualized) | +3.27% | +9.72% | |
| Volatility (annualized) | 14.3% | 13.6% | |
| Max Drawdown | -54.5% | -33.4% | |
| Fund Family | KKR Funds | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Jul 26, 2013 | Oct 20, 2011 |
KIO vs SCHD Performance
KKR Income Opportunities Fund (KIO) is a ETF from KKR Funds and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year KIO returned -1.56% while SCHD returned +31.38%. Year to date, KIO is up 3.80% versus a gain of 24.26% for SCHD.
Over three years, KIO compounded at +9.38% per year against +15.08% for SCHD; over five years the annualized figures are +3.27% and +9.72% respectively. Across the full 13-year window we track, SCHD has the edge at +11.39% annualized vs +0.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KIO has been the more volatile fund, with annualized monthly volatility of 14.3% 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 -54.5% for KIO 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KIO charges 4.59% per year while SCHD charges 0.06%. On a $10,000 position that is $459 vs $6 annually, a gap of $453 per year that compounds over a long holding period. On income, KIO currently yields 12.12% against 3.31% for SCHD.
Holdings Overlap
KIO and SCHD share 0 holdings out of 197 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, KIO or SCHD?
KIO has an expense ratio of 4.59% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $453 per year of difference.
Which performed better, KIO or SCHD?
Over the past year KIO returned -1.56% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (13 years), KIO annualized +0.09% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, KIO or SCHD?
KIO has been the more volatile fund at 14.3% annualized versus 13.6% for SCHD. Worst drawdown: KIO -54.5% vs SCHD -33.4%.
Should I hold both KIO and SCHD?
KIO and SCHD have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KIO and SCHD?
KIO and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 197 unique securities.
Which pays a higher dividend, KIO or SCHD?
KIO yields 12.12% while SCHD yields 3.31%, so KIO currently pays the higher dividend yield.
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