BNDS 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

MetricBNDSSCHDWinner
Expense Ratio0.88%0.06%
AUM$94M$103.7B
Dividend Yield8.71%3.31%
Holdings77104
YTD Return+3.88%+22.69%
1Y Return+9.12%+30.94%
3Y Return (annualized)-+14.20%
5Y Return (annualized)-+9.59%
Volatility (annualized)5.4%13.7%
Max Drawdown-7.0%-33.4%
Fund FamilyInfraCapCharles Schwab Asset Management
CategoryFixed IncomeEquity
InceptionJan 15, 2025Oct 20, 2011

BNDS vs SCHD Performance

Infrastructure Capital Bond Income ETF (BNDS) is a ETF from InfraCap and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year BNDS returned +9.12% while SCHD returned +30.94%. Year to date, BNDS is up 3.88% versus a gain of 22.69% for SCHD.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 5.4% for BNDS. 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 -7.0% for BNDS 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BNDS charges 0.88% per year while SCHD charges 0.06%. On a $10,000 position that is $88 vs $6 annually, a gap of $82 per year that compounds over a long holding period. On income, BNDS currently yields 8.71% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

BNDS and SCHD share 0 holdings out of 170 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, BNDS or SCHD?

BNDS has an expense ratio of 0.88% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $82 per year of difference.

Which performed better, BNDS or SCHD?

Over the past year BNDS returned +9.12% vs +30.94% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), BNDS annualized +8.11% vs +11.31% for SCHD. Past performance does not guarantee future results.

Which is riskier, BNDS or SCHD?

SCHD has been the more volatile fund at 13.7% annualized versus 5.4% for BNDS. Worst drawdown: BNDS -7.0% vs SCHD -33.4%.

Should I hold both BNDS and SCHD?

BNDS and SCHD have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BNDS and SCHD?

BNDS and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 170 unique securities.

Which pays a higher dividend, BNDS or SCHD?

BNDS yields 8.71% while SCHD yields 3.31%, so BNDS currently pays the higher dividend yield.

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