SCHD vs TEI
SCHD vs TEI
Schwab US Dividend Equity ETF vs Templeton Emerging Markets Income Fund Inc.
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | TEI | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 1.14% | |
| AUM | $103.7B | $2,711.9 | |
| Dividend Yield | 3.31% | 12.41% | |
| Holdings | 104 | 151 | |
| YTD Return | +24.26% | +9.87% | |
| 1Y Return | +31.38% | +28.63% | |
| 3Y Return (annualized) | +15.08% | +23.94% | |
| 5Y Return (annualized) | +9.72% | +8.86% | |
| Volatility (annualized) | 13.6% | 17.9% | |
| Max Drawdown | -33.4% | -71.1% | |
| Fund Family | Charles Schwab Asset Management | Franklin Templeton Investments (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Sep 23, 1993 |
SCHD vs TEI Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Templeton Emerging Markets Income Fund Inc. (TEI) is a ETF from Franklin Templeton Investments (US). Over the past year SCHD returned +31.38% while TEI returned +28.63%. Year to date, SCHD is up 24.26% versus a gain of 9.87% for TEI.
Over three years, SCHD compounded at +15.08% per year against +23.94% for TEI; over five years the annualized figures are +9.72% and +8.86% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +0.38%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TEI has been the more volatile fund, with annualized monthly volatility of 17.9% 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 -71.1% for TEI. 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TEI charges 1.14%. On a $10,000 position that is $6 vs $114 annually, a gap of $108 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 12.41% for TEI.
Holdings Overlap
SCHD and TEI share 0 holdings out of 120 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 TEI?
SCHD has an expense ratio of 0.06% while TEI charges 1.14%. SCHD is the cheaper option. On a $10,000 investment, that is $108 per year of difference.
Which performed better, SCHD or TEI?
Over the past year SCHD returned +31.38% vs +28.63% for TEI, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs +0.38% for TEI. Past performance does not guarantee future results.
Which is riskier, SCHD or TEI?
TEI has been the more volatile fund at 17.9% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TEI -71.1%.
Should I hold both SCHD and TEI?
SCHD and TEI have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TEI?
SCHD and TEI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 120 unique securities.
Which pays a higher dividend, SCHD or TEI?
SCHD yields 3.31% while TEI yields 12.41%, so TEI currently pays the higher dividend yield.
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