BND vs SCHD
BND vs SCHD
Vanguard Total Bond Market ETF vs Schwab US Dividend Equity ETF
Quick Verdict
BND has a lower expense ratio. SCHD delivered stronger 1-year returns. BND offers more diversification with 10790 holdings.
Side-by-Side Comparison
| Metric | BND | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.06% | |
| AUM | $159.8B | $103.7B | |
| Dividend Yield | 3.94% | 3.31% | |
| Holdings | 17,528 | 104 | |
| YTD Return | -0.21% | +24.08% | |
| 1Y Return | +1.98% | +31.88% | |
| 3Y Return (annualized) | +4.12% | +14.92% | |
| 5Y Return (annualized) | -0.42% | +9.85% | |
| Volatility (annualized) | 4.6% | 13.6% | |
| Max Drawdown | -19.6% | -33.4% | |
| Fund Family | Vanguard (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Oct 20, 2011 |
BND vs SCHD Performance
Vanguard Total Bond Market ETF (BND) is a ETF from Vanguard (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year BND returned +1.98% while SCHD returned +31.88%. Year to date, BND is down 0.21% versus a gain of 24.08% for SCHD.
Over three years, BND compounded at +4.12% per year against +14.92% for SCHD; over five years the annualized figures are -0.42% and +9.85% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +0.69%. 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 4.6% for BND. 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 -19.6% for BND 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 0.27. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BND charges 0.03% per year while SCHD charges 0.06%. On a $10,000 position that is $3 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, BND currently yields 3.94% against 3.31% for SCHD.
Holdings Overlap
BND and SCHD share 0 holdings out of 10890 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, BND or SCHD?
BND has an expense ratio of 0.03% while SCHD charges 0.06%. BND is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, BND or SCHD?
Over the past year BND returned +1.98% vs +31.88% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), BND annualized +0.69% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, BND or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 4.6% for BND. Worst drawdown: BND -19.6% vs SCHD -33.4%.
Should I hold both BND and SCHD?
BND and SCHD have a monthly-return correlation of 0.27, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BND and SCHD?
BND and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 10890 unique securities.
Which pays a higher dividend, BND or SCHD?
BND yields 3.94% while SCHD yields 3.31%, so BND currently pays the higher dividend yield.
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