RAYJ vs SCHD
Rayliant SMDAM Japan Equity 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 104 holdings.
Side-by-Side Comparison
| Metric | RAYJ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.72% | 0.06% | |
| AUM | $24M | $108.7B | |
| Dividend Yield | 4.76% | 3.13% | |
| Holdings | 34 | 104 | |
| YTD Return | +15.34% | +25.69% | |
| 1Y Return | +23.69% | +30.41% | |
| 3Y Return (annualized) | - | +16.03% | |
| 5Y Return (annualized) | - | +9.64% | |
| Volatility (annualized) | 20.6% | 13.6% | |
| Max Drawdown | -16.6% | -33.4% | |
| Fund Family | Rayliant Asset Management | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Apr 4, 2024 | Oct 20, 2011 |
RAYJ vs SCHD Performance
Rayliant SMDAM Japan Equity ETF (RAYJ) is a ETF from Rayliant Asset Management and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year RAYJ returned +23.69% while SCHD returned +30.41%. Year to date, RAYJ is up 15.34% versus a gain of 25.69% for SCHD.
Risk: Volatility and Drawdowns
RAYJ has been the more volatile fund, with annualized monthly volatility of 20.6% 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 -16.6% for RAYJ 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
RAYJ charges 0.72% per year while SCHD charges 0.06%. On a $10,000 position that is $72 vs $6 annually, a gap of $66 per year that compounds over a long holding period. On income, RAYJ currently yields 4.76% against 3.13% for SCHD.
Holdings Overlap
RAYJ and SCHD share 0 holdings out of 132 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, RAYJ or SCHD?
RAYJ has an expense ratio of 0.72% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $66 per year of difference.
Which performed better, RAYJ or SCHD?
Over the past year RAYJ returned +23.69% vs +30.41% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), RAYJ annualized +20.92% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, RAYJ or SCHD?
RAYJ has been the more volatile fund at 20.6% annualized versus 13.6% for SCHD. Worst drawdown: RAYJ -16.6% vs SCHD -33.4%.
Should I hold both RAYJ and SCHD?
RAYJ and SCHD have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RAYJ and SCHD?
RAYJ and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 132 unique securities.
Which pays a higher dividend, RAYJ or SCHD?
RAYJ yields 4.76% while SCHD yields 3.13%, so RAYJ currently pays the higher dividend yield.
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