BKT vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricBKTSCHDWinner
Expense Ratio2.75%0.06%
AUM$350M$103.7B
Dividend Yield9.60%3.31%
Holdings336104
YTD Return+0.35%+23.53%
1Y Return-2.07%+30.95%
3Y Return (annualized)+5.00%+14.72%
5Y Return (annualized)-3.13%+9.56%
Volatility (annualized)9.2%13.6%
Max Drawdown-46.0%-33.4%
Fund FamilyBlackRock, Inc. (US)Charles Schwab Asset Management
CategoryFixed IncomeEquity
InceptionAug 1, 1988Oct 20, 2011

BKT vs SCHD Performance

BlackRock Income Trust Inc (BKT) 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 BKT returned -2.07% while SCHD returned +30.95%. Year to date, BKT is up 0.35% versus a gain of 23.53% for SCHD.

Over three years, BKT compounded at +5.00% per year against +14.72% for SCHD; over five years the annualized figures are -3.13% and +9.56% respectively. Across the full 15-year window we track, SCHD has the edge at +11.35% annualized vs -0.35%. 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 9.2% for BKT. 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 -46.0% for BKT 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BKT charges 2.75% per year while SCHD charges 0.06%. On a $10,000 position that is $275 vs $6 annually, a gap of $269 per year that compounds over a long holding period. On income, BKT currently yields 9.60% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

BKT and SCHD share 0 holdings out of 194 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, BKT or SCHD?

BKT has an expense ratio of 2.75% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $269 per year of difference.

Which performed better, BKT or SCHD?

Over the past year BKT returned -2.07% vs +30.95% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), BKT annualized -0.35% vs +11.35% for SCHD. Past performance does not guarantee future results.

Which is riskier, BKT or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 9.2% for BKT. Worst drawdown: BKT -46.0% vs SCHD -33.4%.

Should I hold both BKT and SCHD?

BKT and SCHD have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BKT and SCHD?

BKT and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 194 unique securities.

Which pays a higher dividend, BKT or SCHD?

BKT yields 9.60% while SCHD yields 3.31%, so BKT currently pays the higher dividend yield.

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