BNDC vs SCHD
BNDC vs SCHD
FlexShares Core Select Bond Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | BNDC | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.06% | |
| AUM | $169M | $103.7B | |
| Dividend Yield | 4.13% | 3.31% | |
| Holdings | 21 | 104 | |
| YTD Return | -0.54% | +23.53% | |
| 1Y Return | +1.69% | +30.95% | |
| 3Y Return (annualized) | +3.93% | +14.72% | |
| 5Y Return (annualized) | -0.62% | +9.56% | |
| Volatility (annualized) | 5.2% | 13.6% | |
| Max Drawdown | -23.2% | -33.4% | |
| Fund Family | Flexshares Trust | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Nov 18, 2016 | Oct 20, 2011 |
BNDC vs SCHD Performance
FlexShares Core Select Bond Fund (BNDC) is a ETF from Flexshares Trust and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year BNDC returned +1.69% while SCHD returned +30.95%. Year to date, BNDC is down 0.54% versus a gain of 23.53% for SCHD.
Over three years, BNDC compounded at +3.93% per year against +14.72% for SCHD; over five years the annualized figures are -0.62% and +9.56% respectively. Across the full 10-year window we track, SCHD has the edge at +11.35% annualized vs +0.37%. 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 5.2% for BNDC. 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 -23.2% for BNDC 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BNDC charges 0.38% per year while SCHD charges 0.06%. On a $10,000 position that is $38 vs $6 annually, a gap of $32 per year that compounds over a long holding period. On income, BNDC currently yields 4.13% against 3.31% for SCHD.
Holdings Overlap
BNDC and SCHD share 0 holdings out of 114 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, BNDC or SCHD?
BNDC has an expense ratio of 0.38% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, BNDC or SCHD?
Over the past year BNDC returned +1.69% vs +30.95% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (10 years), BNDC annualized +0.37% vs +11.35% for SCHD. Past performance does not guarantee future results.
Which is riskier, BNDC or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 5.2% for BNDC. Worst drawdown: BNDC -23.2% vs SCHD -33.4%.
Should I hold both BNDC and SCHD?
BNDC and SCHD have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BNDC and SCHD?
BNDC and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 114 unique securities.
Which pays a higher dividend, BNDC or SCHD?
BNDC yields 4.13% while SCHD yields 3.31%, so BNDC currently pays the higher dividend yield.
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