BOND vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. BOND offers more diversification with 1027 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: BOND

Side-by-Side Comparison

MetricBONDSCHDWinner
Expense Ratio0.54%0.06%
AUM$8.4B$103.7B
Dividend Yield5.15%3.31%
Holdings1,944104
YTD Return-0.25%+22.69%
1Y Return+3.85%+30.94%
3Y Return (annualized)+4.86%+14.20%
5Y Return (annualized)-0.05%+9.59%
Volatility (annualized)5.0%13.7%
Max Drawdown-19.7%-33.4%
Fund FamilyPIMCO (US)Charles Schwab Asset Management
CategoryFixed IncomeEquity
InceptionFeb 29, 2012Oct 20, 2011

BOND vs SCHD Performance

PIMCO Active Bond Exchange-Traded Fund (BOND) is a ETF from PIMCO (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year BOND returned +3.85% while SCHD returned +30.94%. Year to date, BOND is down 0.25% versus a gain of 22.69% for SCHD.

Over three years, BOND compounded at +4.86% per year against +14.20% for SCHD; over five years the annualized figures are -0.05% and +9.59% respectively. Across the full 14-year window we track, SCHD has the edge at +11.31% annualized vs +0.86%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 5.0% for BOND. 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 -19.7% for BOND 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BOND charges 0.54% per year while SCHD charges 0.06%. On a $10,000 position that is $54 vs $6 annually, a gap of $48 per year that compounds over a long holding period. On income, BOND currently yields 5.15% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

BOND and SCHD share 0 holdings out of 1127 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, BOND or SCHD?

BOND has an expense ratio of 0.54% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $48 per year of difference.

Which performed better, BOND or SCHD?

Over the past year BOND returned +3.85% vs +30.94% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (14 years), BOND annualized +0.86% vs +11.31% for SCHD. Past performance does not guarantee future results.

Which is riskier, BOND or SCHD?

SCHD has been the more volatile fund at 13.7% annualized versus 5.0% for BOND. Worst drawdown: BOND -19.7% vs SCHD -33.4%.

Should I hold both BOND and SCHD?

BOND and SCHD have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BOND and SCHD?

BOND and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1127 unique securities.

Which pays a higher dividend, BOND or SCHD?

BOND yields 5.15% while SCHD yields 3.31%, so BOND currently pays the higher dividend yield.

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