SCHD vs TDF
Schwab US Dividend Equity ETF vs Templeton Dragon Fund
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 | SCHD | TDF | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 1.33% | |
| AUM | $108.7B | $5,054.4 | |
| Dividend Yield | 3.13% | 3.61% | |
| Holdings | 104 | 68 | |
| YTD Return | +26.54% | -5.17% | |
| 1Y Return | +30.90% | +7.13% | |
| 3Y Return (annualized) | +16.29% | +8.81% | |
| 5Y Return (annualized) | +9.65% | -6.58% | |
| Volatility (annualized) | 13.6% | 26.9% | |
| Max Drawdown | -33.4% | -75.1% | |
| Fund Family | Charles Schwab Asset Management | Franklin Templeton Investments (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Sep 8, 1994 |
SCHD vs TDF Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Templeton Dragon Fund (TDF) is a ETF from Franklin Templeton Investments (US). Over the past year SCHD returned +30.90% while TDF returned +7.13%. Year to date, SCHD is up 26.54% versus a loss of 5.17% for TDF.
Over three years, SCHD compounded at +16.29% per year against +8.81% for TDF; over five years the annualized figures are +9.65% and -6.58% respectively. Across the full 15-year window we track, SCHD has the edge at +11.51% annualized vs +0.27%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TDF has been the more volatile fund, with annualized monthly volatility of 26.9% 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 -33.4% for SCHD and -75.1% for TDF. 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TDF charges 1.33%. On a $10,000 position that is $6 vs $133 annually, a gap of $127 per year that compounds over a long holding period. On income, SCHD currently yields 3.13% against 3.61% for TDF.
Holdings Overlap
SCHD and TDF share 0 holdings out of 162 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, SCHD or TDF?
SCHD has an expense ratio of 0.06% while TDF charges 1.33%. SCHD is the cheaper option. On a $10,000 investment, that is $127 per year of difference.
Which performed better, SCHD or TDF?
Over the past year SCHD returned +30.90% vs +7.13% for TDF, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.51% vs +0.27% for TDF. Past performance does not guarantee future results.
Which is riskier, SCHD or TDF?
TDF has been the more volatile fund at 26.9% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TDF -75.1%.
Should I hold both SCHD and TDF?
SCHD and TDF have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TDF?
SCHD and TDF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 162 unique securities.
Which pays a higher dividend, SCHD or TDF?
SCHD yields 3.13% while TDF yields 3.61%, so TDF currently pays the higher dividend yield.
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