KLIP vs SCHD
KraneShares KWEB Covered Call Strategy 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 | KLIP | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.06% | |
| AUM | $102M | $103.7B | |
| Dividend Yield | 32.52% | 3.31% | |
| Holdings | 10 | 104 | |
| YTD Return | -9.63% | +25.62% | |
| 1Y Return | -4.94% | +32.62% | |
| 3Y Return (annualized) | +6.03% | +15.58% | |
| 5Y Return (annualized) | - | +9.63% | |
| Volatility (annualized) | 14.6% | 13.6% | |
| Max Drawdown | -21.5% | -33.4% | |
| Fund Family | KraneShares | Charles Schwab Asset Management | |
| Category | Alternative | Equity | |
| Inception | Jan 11, 2023 | Oct 20, 2011 |
KLIP vs SCHD Performance
KraneShares KWEB Covered Call Strategy ETF (KLIP) is a ETF from KraneShares and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year KLIP returned -4.94% while SCHD returned +32.62%. Year to date, KLIP is down 9.63% versus a gain of 25.62% for SCHD.
Over three years, KLIP compounded at +6.03% per year against +15.58% for SCHD. Across the full 4-year window we track, SCHD has the edge at +11.47% annualized vs +5.73%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KLIP has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -21.5% for KLIP 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KLIP charges 0.95% per year while SCHD charges 0.06%. On a $10,000 position that is $95 vs $6 annually, a gap of $89 per year that compounds over a long holding period. On income, KLIP currently yields 32.52% against 3.31% for SCHD.
Holdings Overlap
KLIP and SCHD share 0 holdings out of 101 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, KLIP or SCHD?
KLIP has an expense ratio of 0.95% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $89 per year of difference.
Which performed better, KLIP or SCHD?
Over the past year KLIP returned -4.94% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), KLIP annualized +5.73% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, KLIP or SCHD?
KLIP has been the more volatile fund at 14.6% annualized versus 13.6% for SCHD. Worst drawdown: KLIP -21.5% vs SCHD -33.4%.
Should I hold both KLIP and SCHD?
KLIP and SCHD have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KLIP and SCHD?
KLIP and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 101 unique securities.
Which pays a higher dividend, KLIP or SCHD?
KLIP yields 32.52% while SCHD yields 3.31%, so KLIP currently pays the higher dividend yield.
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