BIT vs SCHD
BIT vs SCHD
BlackRock Multi-Sector Income Trust vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. BIT offers more diversification with 955 holdings.
Side-by-Side Comparison
| Metric | BIT | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 4.26% | 0.06% | |
| AUM | $746M | $103.7B | |
| Dividend Yield | 11.16% | 3.31% | |
| Holdings | 1,589 | 104 | |
| YTD Return | -0.08% | +24.08% | |
| 1Y Return | -6.98% | +31.88% | |
| 3Y Return (annualized) | +3.75% | +14.92% | |
| 5Y Return (annualized) | +1.54% | +9.85% | |
| Volatility (annualized) | 13.1% | 13.6% | |
| Max Drawdown | -53.3% | -33.4% | |
| Fund Family | BlackRock, Inc. (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Feb 25, 2013 | Oct 20, 2011 |
BIT vs SCHD Performance
BlackRock Multi-Sector Income Trust (BIT) is a ETF from BlackRock, Inc. (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year BIT returned -6.98% while SCHD returned +31.88%. Year to date, BIT is down 0.08% versus a gain of 24.08% for SCHD.
Over three years, BIT compounded at +3.75% per year against +14.92% for SCHD; over five years the annualized figures are +1.54% and +9.85% respectively. Across the full 13-year window we track, SCHD has the edge at +11.39% annualized vs +0.38%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 13.1% for BIT. 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 -53.3% for BIT and -33.4% for SCHD. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BIT charges 4.26% per year while SCHD charges 0.06%. On a $10,000 position that is $426 vs $6 annually, a gap of $420 per year that compounds over a long holding period. On income, BIT currently yields 11.16% against 3.31% for SCHD.
Holdings Overlap
BIT and SCHD share 0 holdings out of 1055 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BIT or SCHD?
BIT has an expense ratio of 4.26% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $420 per year of difference.
Which performed better, BIT or SCHD?
Over the past year BIT returned -6.98% vs +31.88% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (13 years), BIT annualized +0.38% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, BIT or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 13.1% for BIT. Worst drawdown: BIT -53.3% vs SCHD -33.4%.
Should I hold both BIT and SCHD?
BIT and SCHD have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BIT and SCHD?
BIT and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1055 unique securities.
Which pays a higher dividend, BIT or SCHD?
BIT yields 11.16% while SCHD yields 3.31%, so BIT currently pays the higher dividend yield.
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