Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. LSST offers more diversification with 235 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: LSST

Side-by-Side Comparison

MetricLSSTSCHDWinner
Expense Ratio0.35%0.06%
AUM$15M$103.7B
Dividend Yield4.59%3.31%
Holdings235104
YTD Return+4.89%+24.26%
1Y Return+7.37%+31.38%
3Y Return (annualized)+2.14%+15.08%
5Y Return (annualized)+2.47%+9.72%
Volatility (annualized)2.4%13.6%
Max Drawdown-6.2%-33.4%
Fund FamilyNatixis FundsCharles Schwab Asset Management
CategoryFixed IncomeEquity
InceptionDec 27, 2017Oct 20, 2011

LSST vs SCHD Performance

Natixis Loomis Sayles Short Duration Income ETF (LSST) is a ETF from Natixis Funds and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year LSST returned +7.37% while SCHD returned +31.38%. Year to date, LSST is up 4.89% versus a gain of 24.26% for SCHD.

Over three years, LSST compounded at +2.14% per year against +15.08% for SCHD; over five years the annualized figures are +2.47% and +9.72% respectively. Across the full 7-year window we track, SCHD has the edge at +11.39% annualized vs +2.64%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 2.4% for LSST. 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 -6.2% for LSST 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

LSST charges 0.35% per year while SCHD charges 0.06%. On a $10,000 position that is $35 vs $6 annually, a gap of $29 per year that compounds over a long holding period. On income, LSST currently yields 4.59% against 3.31% for SCHD.

Frequently Asked Questions

Which is cheaper, LSST or SCHD?

LSST has an expense ratio of 0.35% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $29 per year of difference.

Which performed better, LSST or SCHD?

Over the past year LSST returned +7.37% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (7 years), LSST annualized +2.64% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, LSST or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 2.4% for LSST. Worst drawdown: LSST -6.2% vs SCHD -33.4%.

Should I hold both LSST and SCHD?

LSST and SCHD have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, LSST or SCHD?

LSST yields 4.59% while SCHD yields 3.31%, so LSST currently pays the higher dividend yield.

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