^N225 vs. SCHD

Last updated Jun 4, 2026

^N225 (Nikkei 225) is an index, while SCHD (Schwab U.S. Dividend Equity ETF) is Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. Over the past 10 years, ^N225 returned 15.04%/yr vs 17.45%/yr for SCHD. At a 0.18 correlation, their price movements are largely independent.

Performance

^N225 vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a ¥10,000 investment in Nikkei 225 (^N225) and Schwab U.S. Dividend Equity ETF (SCHD). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

^N225 is traded in JPY, while SCHD is traded in USD. To make them comparable, the SCHD values have been converted to JPY using the latest available exchange rates.

Returns By Period

In the year-to-date period, ^N225 achieves a 33.76% return, which is significantly higher than SCHD's 21.33% return. Over the past 10 years, ^N225 has underperformed SCHD with an annualized return of 15.04%, while SCHD has yielded a comparatively higher 17.45% annualized return.

^N225

• 1D: -1.56%
• 1M: 13.14%
• YTD: 33.76%
• 6M: 35.03%
• 1Y: 79.81%
• 3Y*: 27.85%
• 5Y*: 18.40%
• 10Y*: 15.04%

SCHD

• 1D: 0.18%
• 1M: 4.46%
• YTD: 21.33%
• 6M: 22.22%
• 1Y: 41.25%
• 3Y*: 20.33%
• 5Y*: 16.89%
• 10Y*: 17.45%

*Multi-year figures are annualized to reflect compound growth (CAGR)

^N225 vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
^N225 Nikkei 225	33.76%	26.18%	19.22%	28.24%	-9.37%	4.91%	16.01%	18.20%	-12.08%	19.10%
SCHD Schwab U.S. Dividend Equity ETF	21.33%	4.04%	24.59%	12.42%	10.20%	44.76%	9.34%	26.06%	-8.05%	16.38%

Correlation

The correlation between ^N225 and SCHD is 0.01, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.01
Correlation (3Y) Calculated over the trailing 3-year period	0.08
Correlation (5Y) Calculated over the trailing 5-year period	0.11
Correlation (10Y) Calculated over the trailing 10-year period	0.16
Correlation (All Time) Calculated using the full available price history since Oct 21, 2011	0.18

The correlation between ^N225 and SCHD shifts across timeframes, from 0.01 (1 year) to 0.18 (all time), reflecting how their relationship changes across market environments.

Return for Risk

^N225 vs. SCHD — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

^N225

^N225 Risk / Return Rank: 96
^N225 Sharpe Ratio Rank: 95
^N225 Sortino Ratio Rank: 96
^N225 Omega Ratio Rank: 95
^N225 Calmar Ratio Rank: 96
^N225 Martin Ratio Rank: 96

SCHD

SCHD Risk / Return Rank: 80
SCHD Sharpe Ratio Rank: 75
SCHD Sortino Ratio Rank: 84
SCHD Omega Ratio Rank: 73
SCHD Calmar Ratio Rank: 91
SCHD Martin Ratio Rank: 75

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

^N225 vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Nikkei 225 (^N225) and Schwab U.S. Dividend Equity ETF (SCHD). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	^N225	SCHD	Difference
Sharpe ratio Return per unit of total volatility	3.33	3.30	+0.03
Sortino ratio Return per unit of downside risk	4.37	4.59	-0.21
Omega ratio Gain probability vs. loss probability	1.55	1.58	-0.03
Calmar ratio Return relative to maximum drawdown	6.18	10.97	-4.78
Martin ratio Return relative to average drawdown	21.90	30.01	-8.11
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

^N225 vs. SCHD - Sharpe Ratio Comparison

The current ^N225 Sharpe Ratio is 3.33, which is comparable to the SCHD Sharpe Ratio of 3.30. The chart below compares the historical Sharpe Ratios of ^N225 and SCHD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	^N225	SCHD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.33	3.30	+0.03
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.85	0.98	-0.13
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.75	0.87	-0.12
Sharpe Ratio (All Time) Calculated using the full available price history	0.29	0.99	-0.70

Drawdowns

^N225 vs. SCHD - Drawdown Comparison

The maximum ^N225 drawdown since its inception was -81.87%, which is greater than SCHD's maximum drawdown of -33.14%. Use the drawdown chart below to compare losses from any high point for ^N225 and SCHD.

Drawdown Indicators

	^N225	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-81.87%	-33.14%	-48.73%
Max Drawdown (1Y) Largest decline over 1 year	-13.23%	-3.78%	-9.45%
Max Drawdown (3Y) Largest decline over 3 years	-26.26%	-21.08%	-5.18%
Max Drawdown (5Y) Largest decline over 5 years	-26.26%	-21.08%	-5.18%
Max Drawdown (10Y) Largest decline over 10 years	-31.80%	-33.14%	+1.34%
Current Drawdown Current decline from peak	-1.56%	-0.94%	-0.62%
Average Drawdown Average peak-to-trough decline	-34.22%	-4.38%	-29.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.69%	1.38%	+2.31%

Volatility

^N225 vs. SCHD - Volatility Comparison

Nikkei 225 (^N225) has a higher volatility of 8.68% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 3.17%. This indicates that ^N225's price experiences larger fluctuations and is considered to be riskier than SCHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	^N225	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.68%	3.17%	+5.51%
Volatility (6M) Calculated over the trailing 6-month period	19.93%	8.94%	+10.99%
Volatility (1Y) Calculated over the trailing 1-year period	24.60%	12.66%	+11.94%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.33%	17.26%	+5.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.84%	20.13%	+0.71%

Frequently Asked Questions

Can I hold both ^N225 and SCHD in my portfolio?

^N225 and SCHD have a correlation of 0.01, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ^N225 or SCHD?

^N225 has higher volatility (8.68%) compared to SCHD (3.17%). In terms of maximum drawdown, ^N225 dropped -81.87% vs SCHD's -33.14%.

Which has better risk-adjusted returns?

^N225 currently has the higher Sharpe Ratio (3.33 vs 3.30), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.