MSDL vs. SCHD
MSDL (Morgan Stanley Direct Lending Fund) is a stock, while SCHD (Schwab U.S. Dividend Equity ETF) is Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. Over the past year, MSDL returned -11.39% vs 23.21% for SCHD. At a 0.26 correlation, their price movements are largely independent.
Performance
MSDL vs. SCHD - Performance Comparison
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Returns By Period
In the year-to-date period, MSDL achieves a -5.73% return, which is significantly lower than SCHD's 16.62% return.
MSDL
- 1D
- -1.12%
- 1M
- -0.33%
- YTD
- -5.73%
- 6M
- -4.55%
- 1Y
- -11.39%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
SCHD
- 1D
- -0.94%
- 1M
- -3.38%
- YTD
- 16.62%
- 6M
- 15.65%
- 1Y
- 23.21%
- 3Y*
- 14.25%
- 5Y*
- 8.36%
- 10Y*
- 12.62%
MSDL vs. SCHD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
MSDL Morgan Stanley Direct Lending Fund | -5.73% | -10.85% | 11.98% |
SCHD Schwab U.S. Dividend Equity ETF | 16.62% | 4.34% | 10.48% |
Correlation
The correlation between MSDL and SCHD is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.27 |
Correlation (All Time) Calculated using the full available price history since Jan 24, 2024 | 0.26 |
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Return for Risk
MSDL vs. SCHD — Risk / Return Rank
MSDL
SCHD
MSDL vs. SCHD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Morgan Stanley Direct Lending Fund (MSDL) 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| MSDL | SCHD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.65 | ||
| Sortino ratioReturn per unit of downside risk | -3.89 | ||
| Omega ratioGain probability vs. loss probability | 0.92 | 1.37 | -0.45 |
| Calmar ratioReturn relative to maximum drawdown | -0.46 | 5.05 | -5.51 |
| Martin ratioReturn relative to average drawdown | -0.82 | 12.16 | -12.98 |
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Drawdowns
MSDL vs. SCHD - Drawdown Comparison
The maximum MSDL drawdown since its inception was -29.68%, smaller than the maximum SCHD drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for MSDL and SCHD.
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Drawdown Indicators
| MSDL | SCHD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -29.68% | -33.37% | +3.69% |
Max Drawdown (1Y)Largest decline over 1 year | -24.80% | -4.61% | -20.19% |
Max Drawdown (3Y)Largest decline over 3 years | — | -16.13% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -16.85% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -33.37% | — |
Current DrawdownCurrent decline from peak | -22.02% | -3.38% | -18.64% |
Average DrawdownAverage peak-to-trough decline | -12.23% | -3.31% | -8.92% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 13.84% | 1.92% | +11.92% |
Volatility
MSDL vs. SCHD - Volatility Comparison
Morgan Stanley Direct Lending Fund (MSDL) has a higher volatility of 7.09% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 3.13%. This indicates that MSDL'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.
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Volatility by Period
| MSDL | SCHD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.09% | 3.13% | +3.96% |
Volatility (6M)Calculated over the trailing 6-month period | 16.93% | 7.80% | +9.13% |
Volatility (1Y)Calculated over the trailing 1-year period | 20.58% | 11.12% | +9.46% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 23.19% | 14.36% | +8.83% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.19% | 16.71% | +6.48% |
Dividends
MSDL vs. SCHD - Dividend Comparison
MSDL's dividend yield for the trailing twelve months is around 12.97%, more than SCHD's 3.33% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MSDL Morgan Stanley Direct Lending Fund | 12.97% | 12.14% | 10.65% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
SCHD Schwab U.S. Dividend Equity ETF | 3.33% | 3.82% | 3.64% | 3.49% | 3.39% | 2.78% | 3.16% | 2.98% | 3.06% | 2.63% | 2.89% | 2.97% |
Frequently Asked Questions
MSDL and SCHD have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MSDL has higher volatility (7.09%) compared to SCHD (3.13%). In terms of maximum drawdown, MSDL dropped -29.68% vs SCHD's -33.37%.
SCHD currently has the higher Sharpe Ratio (2.10 vs -0.56), 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.
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