SCHD vs WDI
Schwab US Dividend Equity ETF vs Western Asset Diversified Income Fund
Which is better, SCHD or WDI?
Large Cap Value against Diversified Sectoral Bond.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.
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 | WDI |
|---|---|---|
| Expense Ratio | 0.06%Best | 1.82% |
| AUM | $111.6B | $722M |
| Dividend Yield | 3.24% | 12.77% |
| Holdings | 206 | 410 |
| YTD Return | +24.55%Best | -8.20% |
| 1Y Return | +29.85%Best | -11.35% |
| 3Y Return (annualized) | +16.64%Best | +9.21% |
| 5Y Return (annualized) | +9.54%Best | +0.79% |
| Volatility (annualized) | 14.8% | 14.1%Best |
| Max Drawdown | -16.9%Best | -32.5% |
| $10,000 over 5 years | $15,771Best | $10,401 |
| Fund Family | Charles Schwab Asset Management | Franklin Templeton Investments (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Value | Diversified Sectoral Bond |
| Inception | Oct 20, 2011 | Jun 24, 2021 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jun 25, 2021 to Oct 14, 2026 (5.3 years).
SCHD vs WDI 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 5.3 years both funds cover.
SCHD vs WDI Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and Western Asset Diversified Income Fund (WDI) is an ETF from Franklin Templeton Investments (US). Over the past year SCHD returned +29.85% while WDI returned -11.35%. Year to date, SCHD is up 24.55% versus a loss of 8.20% for WDI.
Over three years, SCHD compounded at +16.64% per year against +9.21% for WDI; over five years the annualized figures are +9.54% and +0.79% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 14.8% compared with 14.1% for WDI. 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 -16.9% for SCHD and -32.5% for WDI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.60. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SCHD charges 0.06% per year while WDI charges 1.82%. On a $10,000 position that is $6 vs $182 annually, a gap of $176 per year that compounds over a long holding period. On income, SCHD currently yields 3.24% against 12.77% for WDI.
Holdings Overlap
We hold position weights for 98 holdings in SCHD and 192 in WDI, totalling 99.8% and 79.1% 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 276 days apart, SCHD as of Oct 3, 2026 and WDI as of Dec 31, 2025, 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 98 positions we hold weights for in SCHD and 192 in WDI, against full books of 206 and 410.
You are not choosing between two funds in isolation.
Whichever of SCHD and WDI 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 WDI?
SCHD has an expense ratio of 0.06% while WDI charges 1.82%. SCHD is the cheaper option, by $176 a year on a $10,000 investment.
Which performed better, SCHD or WDI?
Over the past year SCHD returned +29.85% vs -11.35% for WDI, so SCHD leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or WDI?
SCHD has been the more volatile fund at 14.8% annualized versus 14.1% for WDI. Worst drawdown: SCHD -16.9% vs WDI -32.5%.
Should I hold both SCHD and WDI?
SCHD and WDI have a monthly-return correlation of 0.60, 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 WDI?
SCHD yields 3.24% while WDI yields 12.77%, so WDI currently pays the higher dividend yield.
Is WDI better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.