KXI vs SCHD Fund Comparison

A comparison between KXI and SCHD based on their expense ratio, growth, holdings and how well they match their benchmark performance.

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Minafi's Take on KXI vs SCHD

Here's an in depth look at the differences between iShares Global Consumer Staples ETF ($KXI) and Schwab U.S. Dividend Equity ETF ($SCHD).

To start off, here's a look at the basics of each fund. Keep an eye on the FI Score. That's a custom score from 0 to 100 that we generate based on how good this fund is for the casual investor. Most investors only need a handful of total funds in their portfolio. The higher the score, the more likely this is one of those few. Score alone isn't enough! Keep reading on to see how different (or perhaps similar) these two funds are.

64% FI Score
  • kxi
  • ETF
  • Sector Equity
  • Consumer Defensive

iShares Global Consumer Staples ETF

Expenses: 0.46% (Better than 1% of similar funds)

This is an OK choice for a Consumer Defensive Sector Equity fund. See why »

92% FI Score
  • schd
  • ETF
  • US Stocks
  • Large Value

Schwab U.S. Dividend Equity ETF

Expenses: 0.06% (Better than 1% of similar funds)

This is a great choice for a Large Value US Stocks fund. See why »

Both $KXI and $SCHD are categorized as ETFs. ETFs have an added bonus over mutual funds of being more widely available. Mutual funds are often limited to only the issuing investment brokerage. Since these are both ETFs, you may be able to find these at a wider number of investment apps and websites.

The biggest disadvantage of ETFs is that some platforms only allow you to purchase ETFs in whole shares. So if an ETF is going for $75, you may need to invest in increments of $75. Most 401(k)'s allow for investing down to the penny, but you'll want to verify your platform allows for "fractional ETF Shares".

To learn more about the difference between these two, you can read about the difference between ETFs and Mutual Funds.

When evaluating a fund, the first things I look at are:

  • What it invests in
  • How much it charges in fees
  • How large the fund is

Let's look into these criteria one by one and see if either of these funds stands out.

Fund Holdings Comparison

Minafi's FI Score algorithm takes into account the category and market. The more niche a fund is, the lower the score. This doesn't mean it's a worse fund, but it does mean you should stop and make sure this a fund you need to diversify your portfolio.

KXI SCHD
Market Score 8.3 /10 9.2 /10
Category Score 0.0 /10 8.0 /10
Total 8.3 17.2

A score of 10 means this is a solid market and category that almost every investor will want to have investments in. The lower the score, the more specific the investment. These scores are based on when most investors would add these funds to their portfolio. A score of 10 means that this fund (or one like it) belongs in a three-fund portfolio. The lower the score, the farther down in your portfolio a fund would go.

For each fund we've created a "diversification score" – a metric to indicate how closely each funds asset allocation matches it's benchmark. For example, an S&P 500 fund would have a diversification score of 10 if it's fully in line with the actual S&P 500.

The diversification score for KXI is 8.9/10, while SCHD has a diversification score of 0.0/10.

In other words, KXI more closely matches it's benchmark.

Winner: $SCHD

Fee Comparison

Fees are one of the biggest killers of portfolio growth. The difference between a 2% fee and a 0.04% fee over 30 years can result in your portfolio having half the total value!

If you're just getting started investing and learning how fees impact your portfolio, I'd encourage you to read through my free investment course (specifically '2.2 - All About Fees') where I go over all the different types of fees you can be charged and how to lower them.

For these two funds, KXI has an expense ratio of 0.46% while SCHD has an expense ratio of 0.06%.

Winner: $SCHD

Fund Size Comparison

Both KXI and SCHD have a similar number of assets under management. KXI has 664 Million in assets under management, while SCHD has 11.6 Billion.

Minafi categorizes both of these funds as large funds. Fund size is a good indication of how many other investors trust this fund. A large fund by itself doesn't mean it's a good fund, but it is one thing to consider when figuring out how to choose the right fund.

Winner: tie

Which Should You Choose? KXI or SCHD?

Comparing these two funds isn't an apples to apples comparison. KXI is a Sector Equity Consumer Defensive fund, while SCHD is a US Stocks Large Value fund.

If you're aiming to build a diversified, low-fee, tax-optimized portfolio you likely won't be choosing between these two funds since they're different enough.

Running both of these funds through Minafi's FI Score algorithm, gives KXI a score of 64 and SCHD a score of 92.

Winner: $SCHD, Schwab U.S. Dividend Equity ETF

$KXI

iShares Global Consumer Staples ETF

64

Read More
Ratings
Rating Type Rating
Diversification Score 9 /10
Expense Ratio Score 6 /10
Expense Rating 5 /10
Market Score 8 /10
Category Score 0 /10
Overview
Overview Details
Fund Type ETF
Inception Date Sep-12-2006
Exchange NYSE ARCA
Expense Ratio 0.460%
Net Assets 664 Million
Yield 2.32%
Holdings
Description Info
Market Sector Equity
Category Consumer Defensive
Sectors
  • Basic Materials 0.00%
  • Communication Services 0.00%
  • Consumer Cyclicals 0.69%
  • Consumer Defensive 98.36%
  • Energy 0.00%
  • Financial Services 0.00%
  • Healthcare 0.96%
  • Industrials 0.00%
  • Real Estate 0.00%
  • Technology 0.00%
  • Utilities 0.00%
Regions
  • Asia Developed 0.42%
  • Australasia 1.93%
  • Europe Developed 23.97%
  • Japan 7.75%
  • Latin America 1.32%
  • North America 52.50%
  • United Kingdom 12.10%

$SCHD

Schwab U.S. Dividend Equity ETF

92

Read More
Ratings
Rating Type Rating
Diversification Score 0 /10
Expense Ratio Score 10 /10
Expense Rating 9 /10
Market Score 9 /10
Category Score 8 /10
Overview
Overview Details
Fund Type ETF
Inception Date Oct-20-2011
Exchange NYSE ARCA
Expense Ratio 0.060%
Net Assets 11.6 Billion
Yield 3.45%
Holdings
Description Info
Market US Stocks
Category Large Value
Sectors
  • Basic Materials 0.72%
  • Communication Services 4.38%
  • Consumer Cyclicals 9.54%
  • Consumer Defensive 21.72%
  • Energy 6.80%
  • Financial Services 8.74%
  • Healthcare 11.75%
  • Industrials 17.97%
  • Real Estate 0.01%
  • Technology 18.35%
  • Utilities 0.01%
Regions
  • Europe Developed 0.48%
  • North America 99.52%
  • United Kingdom 0.00%

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