BSV vs SCHD
BSV vs SCHD
Vanguard Short-Term Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
BSV has a lower expense ratio. SCHD delivered stronger 1-year returns. BSV offers more diversification with 2787 holdings.
Side-by-Side Comparison
| Metric | BSV | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.06% | |
| AUM | $44.8B | $103.7B | |
| Dividend Yield | 3.98% | 3.31% | |
| Holdings | 3,125 | 104 | |
| YTD Return | +0.41% | +24.26% | |
| 1Y Return | +2.34% | +31.38% | |
| 3Y Return (annualized) | +4.28% | +15.08% | |
| 5Y Return (annualized) | +1.59% | +9.72% | |
| Volatility (annualized) | 2.4% | 13.6% | |
| Max Drawdown | -9.0% | -33.4% | |
| Fund Family | Vanguard (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Oct 20, 2011 |
BSV vs SCHD Performance
Vanguard Short-Term Bond ETF (BSV) 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 BSV returned +2.34% while SCHD returned +31.38%. Year to date, BSV is up 0.41% versus a gain of 24.26% for SCHD.
Over three years, BSV compounded at +4.28% per year against +15.08% for SCHD; over five years the annualized figures are +1.59% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +0.91%. 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 2.4% for BSV. 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 -9.0% for BSV 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 0.19. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BSV 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, BSV currently yields 3.98% against 3.31% for SCHD.
Holdings Overlap
BSV and SCHD share 0 holdings out of 2887 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, BSV or SCHD?
BSV has an expense ratio of 0.03% while SCHD charges 0.06%. BSV is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, BSV or SCHD?
Over the past year BSV returned +2.34% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), BSV annualized +0.91% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, BSV or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 2.4% for BSV. Worst drawdown: BSV -9.0% vs SCHD -33.4%.
Should I hold both BSV and SCHD?
BSV and SCHD have a monthly-return correlation of 0.19, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BSV and SCHD?
BSV and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2887 unique securities.
Which pays a higher dividend, BSV or SCHD?
BSV yields 3.98% while SCHD yields 3.31%, so BSV currently pays the higher dividend yield.
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