SCHD vs TEI
Schwab US Dividend Equity ETF vs Templeton Emerging Markets Income Fund Inc.
Which is better, SCHD or TEI?
Large Cap Value against Emerging Markets Bond.
SCHD has a lower expense ratio. SCHD led over 1Y, 5Y and the full window, TEI over 3Y.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SCHD | TEI |
|---|---|---|
| Expense Ratio | 0.06%Best | 1.14% |
| AUM | $112.1B | $2,711.9 |
| Dividend Yield | 3.00% | 12.51% |
| Holdings | 103 | 151 |
| YTD Return | +24.23%Best | +6.34% |
| 1Y Return | +27.90%Best | +16.24% |
| 3Y Return (annualized) | +15.55% | +22.79%Best |
| 5Y Return (annualized) | +9.97%Best | +7.55% |
| Volatility (annualized) | 13.6%Best | 14.8% |
| Max Drawdown | -33.4%Best | -71.1% |
| $10,000 over 5 years | $16,083Best | $14,390 |
| Fund Family | Charles Schwab Asset Management | Franklin Templeton Investments (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Value | Emerging Markets Bond |
| Inception | Oct 20, 2011 | Sep 23, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 17, 2026 (14.9 years).
SCHD vs TEI growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 14.9 years both funds cover.
SCHD vs TEI Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and Templeton Emerging Markets Income Fund Inc. (TEI) is an ETF from Franklin Templeton Investments (US). Over the past year SCHD returned +27.90% while TEI returned +16.24%. Year to date, SCHD is up 24.23% versus a gain of 6.34% for TEI.
Over three years, SCHD compounded at +15.55% per year against +22.79% for TEI; over five years the annualized figures are +9.97% and +7.55% respectively. Across the full 15-year window we track, SCHD has the edge at +11.30% annualized vs -1.62%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TEI has been the more volatile fund, with annualized monthly volatility of 14.8% 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 what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.52. They move together some of the time, and apart the rest.
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 3.00% against 12.51% for TEI.
Holdings Overlap
We hold position weights for 100 holdings in SCHD and 18 in TEI, totalling 100.0% and 29.8% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 153 days apart, SCHD as of Aug 31, 2026 and TEI as of Mar 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 100 positions we hold weights for in SCHD and 18 in TEI, against full books of 103 and 151.
You are not choosing between two funds in isolation.
Whichever of SCHD and TEI you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $108 a year on a $10,000 investment.
Which performed better, SCHD or TEI?
Over the past year SCHD returned +27.90% vs +16.24% for TEI, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.30% vs -1.62% for TEI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or TEI?
TEI has been the more volatile fund at 14.8% 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 their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, SCHD or TEI?
SCHD yields 3.00% while TEI yields 12.51%, so TEI currently pays the higher dividend yield.
Is TEI better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 5Y and the full window, TEI over 3Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.