SCHD vs TWN
Schwab US Dividend Equity ETF vs Taiwan Fund Inc.
Quick Verdict
SCHD has a lower expense ratio. TWN delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | TWN | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.96% | |
| AUM | $103.7B | $311M | |
| Dividend Yield | 3.31% | 6.55% | |
| Holdings | 104 | 28 | |
| YTD Return | +26.21% | +78.52% | |
| 1Y Return | +29.99% | +125.86% | |
| 3Y Return (annualized) | +15.73% | +62.78% | |
| 5Y Return (annualized) | +9.67% | +32.26% | |
| Volatility (annualized) | 13.6% | 36.2% | |
| Max Drawdown | -33.4% | -70.2% | |
| Fund Family | Charles Schwab Asset Management | The Taiwan Fund | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Dec 23, 1986 |
SCHD vs TWN Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Taiwan Fund Inc. (TWN) is a ETF from The Taiwan Fund. Over the past year SCHD returned +29.99% while TWN returned +125.86%. Year to date, SCHD is up 26.21% versus a gain of 78.52% for TWN.
Over three years, SCHD compounded at +15.73% per year against +62.78% for TWN; over five years the annualized figures are +9.67% and +32.26% respectively. Across the full 15-year window we track, TWN has the edge at +13.22% annualized vs +11.50%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TWN has been the more volatile fund, with annualized monthly volatility of 36.2% 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 -70.2% for TWN. 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TWN charges 0.96%. On a $10,000 position that is $6 vs $96 annually, a gap of $90 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 6.55% for TWN.
Holdings Overlap
SCHD and TWN share 0 holdings out of 128 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 TWN?
SCHD has an expense ratio of 0.06% while TWN charges 0.96%. SCHD is the cheaper option. On a $10,000 investment, that is $90 per year of difference.
Which performed better, SCHD or TWN?
Over the past year SCHD returned +29.99% vs +125.86% for TWN, so TWN leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.50% vs +13.22% for TWN. Past performance does not guarantee future results.
Which is riskier, SCHD or TWN?
TWN has been the more volatile fund at 36.2% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TWN -70.2%.
Should I hold both SCHD and TWN?
SCHD and TWN have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TWN?
SCHD and TWN share 0 common holdings with a 0.0% weight overlap. Combined, they hold 128 unique securities.
Which pays a higher dividend, SCHD or TWN?
SCHD yields 3.31% while TWN yields 6.55%, so TWN currently pays the higher dividend yield.
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