MSTI vs. SCHJ

Last updated Aug 4, 2026

MSTI (Madison Short-Term Strategic Income ETF) and SCHJ (Schwab 1-5 Year Corporate Bond ETF) are both Short-Term Bond funds. MSTI is actively managed, while SCHJ is passively managed. Over the past year, MSTI returned 2.90% vs 3.10% for SCHJ. Their 0.75 correlation means they have sometimes moved together and sometimes differently. MSTI charges 0.40%/yr vs 0.03%/yr for SCHJ.

Performance

MSTI vs. SCHJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Madison Short-Term Strategic Income ETF (MSTI) and Schwab 1-5 Year Corporate Bond ETF (SCHJ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MSTI achieves a 0.73% return, which is significantly lower than SCHJ's 0.85% return.

MSTI

• 1D: 0.07%
• 1M: -0.19%
• 6M: 0.52%
• YTD: 0.73%
• 1Y: 2.90%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 5.53%

SCHJ

• 1D: 0.10%
• 1M: -0.18%
• 6M: 0.56%
• YTD: 0.85%
• 1Y: 3.10%
• 3Y*: 5.41%
• 5Y*: 2.32%
• 10Y*: —
• ALL TIME*: 2.61%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
MSTI Madison Short-Term Strategic Income ETF	$18.44K	$19.64K	$49.42K
SCHJ Schwab 1-5 Year Corporate Bond ETF	$5.83M	$7.78M	$6.51M

MSTI vs. SCHJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
MSTI Madison Short-Term Strategic Income ETF	0.73%	6.33%	4.84%	4.13%
SCHJ Schwab 1-5 Year Corporate Bond ETF	0.85%	6.80%	4.89%	3.95%

Correlation

The correlation between MSTI and SCHJ is 0.69, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.69
Correlation (All Time) Calculated using the full available price history since Sep 6, 2023	0.75

The correlation between MSTI and SCHJ has been stable across timeframes, ranging from 0.69 to 0.75 - a consistent structural relationship.

Return for Risk

MSTI vs. SCHJ — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

MSTI

MSTI Risk / Return Rank: 54
MSTI Sharpe Ratio Rank: 47
MSTI Sortino Ratio Rank: 47
MSTI Omega Ratio Rank: 50
MSTI Calmar Ratio Rank: 59
MSTI Martin Ratio Rank: 68

SCHJ

SCHJ Risk / Return Rank: 68
SCHJ Sharpe Ratio Rank: 71
SCHJ Sortino Ratio Rank: 73
SCHJ Omega Ratio Rank: 72
SCHJ Calmar Ratio Rank: 58
SCHJ Martin Ratio Rank: 64

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

MSTI vs. SCHJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Madison Short-Term Strategic Income ETF (MSTI) and Schwab 1-5 Year Corporate Bond ETF (SCHJ). 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.

	MSTI	SCHJ	Difference
Sharpe ratio: Return per unit of total volatility	1.24	1.68	-0.44
Sortino ratio: Return per unit of downside risk	1.81	2.43	-0.62
Omega ratio: Gain probability vs. loss probability	1.24	1.31	-0.07
Calmar ratio: Return relative to maximum drawdown	2.21	2.11	+0.10
Martin ratio: Return relative to average drawdown	8.78	7.94	+0.83

MSTI vs. SCHJ - Sharpe Ratio Comparison

The current MSTI Sharpe Ratio is 1.24, which is comparable to the SCHJ Sharpe Ratio of 1.68. The chart below compares the historical Sharpe Ratios of MSTI and SCHJ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

MSTI vs. SCHJ - Drawdown Comparison

The maximum MSTI drawdown since its inception was -1.48%, smaller than the maximum SCHJ drawdown of -13.62%. Use the drawdown chart below to compare losses from any high point for MSTI and SCHJ.

Drawdown Indicators

	MSTI	SCHJ	Difference
Max Drawdown Largest peak-to-trough decline	-1.48%	-13.62%	+12.14%
Max Drawdown (1Y) Largest decline over 1 year	-1.32%	-1.47%	+0.15%
Max Drawdown (3Y) Largest decline over 3 years	—	-1.47%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-9.35%	—
Current Drawdown Current decline from peak	-0.32%	-0.22%	-0.10%
Average Drawdown Average peak-to-trough decline	-0.29%	-1.84%	+1.55%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.33%	0.39%	-0.06%

Volatility

MSTI vs. SCHJ - Volatility Comparison

Madison Short-Term Strategic Income ETF (MSTI) has a higher volatility of 0.55% compared to Schwab 1-5 Year Corporate Bond ETF (SCHJ) at 0.51%. This indicates that MSTI's price experiences larger fluctuations and is considered to be riskier than SCHJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSTI	SCHJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.55%	0.51%	+0.04%
Volatility (6M) Calculated over the trailing 6-month period	1.61%	1.53%	+0.08%
Volatility (1Y) Calculated over the trailing 1-year period	2.35%	1.86%	+0.49%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.67%	2.96%	-0.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.67%	4.10%	-1.43%

MSTI vs. SCHJ - Expense Ratio Comparison

MSTI has a 0.40% expense ratio, which is higher than SCHJ's 0.03% expense ratio.

Dividends

MSTI vs. SCHJ - Dividend Comparison

MSTI's dividend yield for the trailing twelve months is around 5.44%, more than SCHJ's 4.53% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
MSTI Madison Short-Term Strategic Income ETF	5.44%	5.40%	5.48%	1.55%	0.00%	0.00%	0.00%	0.00%
SCHJ Schwab 1-5 Year Corporate Bond ETF	4.53%	4.42%	4.00%	2.98%	1.64%	0.94%	2.54%	0.42%

Frequently Asked Questions

Can I hold both MSTI and SCHJ in my portfolio?

MSTI and SCHJ have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MSTI or SCHJ?

MSTI has higher volatility (0.55%) compared to SCHJ (0.51%). In terms of maximum drawdown, MSTI dropped -1.48% vs SCHJ's -13.62%.

Which ETF is better, MSTI or SCHJ?

On 1-year performance, SCHJ leads with 3.10% vs 2.90% for MSTI. On fees, SCHJ is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSTI or SCHJ?

Over the 1-year period, SCHJ has performed better with a 3.10% return vs 2.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSTI or SCHJ?

SCHJ is cheaper with a 0.03% expense ratio, compared with 0.40% for MSTI.

Which ETF pays a higher dividend yield, MSTI or SCHJ?

MSTI has the higher dividend yield at 5.44%, compared with 4.53% for SCHJ.

What is the main difference between MSTI and SCHJ?

They also come from different issuers: Madison and Charles Schwab. Their fees differ too: 0.40% for MSTI and 0.03% for SCHJ.

Which has better risk-adjusted returns?

SCHJ currently has the higher Sharpe Ratio (1.68 vs 1.24), 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.