LKOR vs SCHD
FlexShares Credit-Scored US Long Corporate Bond Index Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. LKOR offers more diversification with 771 holdings.
Side-by-Side Comparison
| Metric | LKOR | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.06% | |
| AUM | $30M | $103.7B | |
| Dividend Yield | 5.70% | 3.31% | |
| Holdings | 817 | 104 | |
| YTD Return | -5.77% | +25.33% | |
| 1Y Return | -4.15% | +32.31% | |
| 3Y Return (annualized) | +2.87% | +15.40% | |
| 5Y Return (annualized) | -3.65% | +9.70% | |
| Volatility (annualized) | 27.9% | 13.6% | |
| Max Drawdown | -42.4% | -33.4% | |
| Fund Family | Flexshares Trust | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 23, 2015 | Oct 20, 2011 |
LKOR vs SCHD Performance
FlexShares Credit-Scored US Long Corporate Bond Index Fund (LKOR) is a ETF from Flexshares Trust and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year LKOR returned -4.15% while SCHD returned +32.31%. Year to date, LKOR is down 5.77% versus a gain of 25.33% for SCHD.
Over three years, LKOR compounded at +2.87% per year against +15.40% for SCHD; over five years the annualized figures are -3.65% and +9.70% respectively. Across the full 11-year window we track, SCHD has the edge at +11.45% annualized vs +2.13%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
LKOR has been the more volatile fund, with annualized monthly volatility of 27.9% 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 -42.4% for LKOR 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 0.11. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LKOR charges 0.15% per year while SCHD charges 0.06%. On a $10,000 position that is $15 vs $6 annually, a gap of $9 per year that compounds over a long holding period. On income, LKOR currently yields 5.70% against 3.31% for SCHD.
Holdings Overlap
LKOR and SCHD share 0 holdings out of 871 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, LKOR or SCHD?
LKOR has an expense ratio of 0.15% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, LKOR or SCHD?
Over the past year LKOR returned -4.15% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (11 years), LKOR annualized +2.13% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, LKOR or SCHD?
LKOR has been the more volatile fund at 27.9% annualized versus 13.6% for SCHD. Worst drawdown: LKOR -42.4% vs SCHD -33.4%.
Should I hold both LKOR and SCHD?
LKOR and SCHD have a monthly-return correlation of 0.11, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LKOR and SCHD?
LKOR and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 871 unique securities.
Which pays a higher dividend, LKOR or SCHD?
LKOR yields 5.70% while SCHD yields 3.31%, so LKOR currently pays the higher dividend yield.
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