Quick Verdict

SCHD has a lower expense ratio. KSTR delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: KSTRMore Diversified: SCHD

Side-by-Side Comparison

MetricKSTRSCHDWinner
Expense Ratio0.89%0.06%
AUM$398M$103.7B
Dividend Yield0.00%3.31%
Holdings53104
YTD Return+31.34%+24.26%
1Y Return+74.66%+31.38%
3Y Return (annualized)+21.96%+15.08%
5Y Return (annualized)-1.10%+9.72%
Volatility (annualized)2736.8%13.6%
Max Drawdown-99.8%-33.4%
Fund FamilyKraneSharesCharles Schwab Asset Management
CategoryEquityEquity
InceptionJan 27, 2021Oct 20, 2011

KSTR vs SCHD Performance

KraneShares China Technology & Semiconductor STAR 50 Index ETF (KSTR) is a ETF from KraneShares and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year KSTR returned +74.66% while SCHD returned +31.38%. Year to date, KSTR is up 31.34% versus a gain of 24.26% for SCHD.

Over three years, KSTR compounded at +21.96% per year against +15.08% for SCHD; over five years the annualized figures are -1.10% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs -8.42%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

KSTR has been the more volatile fund, with annualized monthly volatility of 2736.8% 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 -99.8% for KSTR 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 0.17. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

KSTR charges 0.89% per year while SCHD charges 0.06%. On a $10,000 position that is $89 vs $6 annually, a gap of $83 per year that compounds over a long holding period. On income, KSTR currently yields 0.00% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

KSTR and SCHD share 0 holdings out of 149 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, KSTR or SCHD?

KSTR has an expense ratio of 0.89% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $83 per year of difference.

Which performed better, KSTR or SCHD?

Over the past year KSTR returned +74.66% vs +31.38% for SCHD, so KSTR leads on 1-year performance. Over the longest common window we track (15 years), KSTR annualized -8.42% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, KSTR or SCHD?

KSTR has been the more volatile fund at 2736.8% annualized versus 13.6% for SCHD. Worst drawdown: KSTR -99.8% vs SCHD -33.4%.

Should I hold both KSTR and SCHD?

KSTR and SCHD have a monthly-return correlation of 0.17, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between KSTR and SCHD?

KSTR and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 149 unique securities.

Which pays a higher dividend, KSTR or SCHD?

KSTR yields 0.00% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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