CGCB vs SCHD
CGCB vs SCHD
Capital Group Core Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. CGCB offers more diversification with 351 holdings.
Side-by-Side Comparison
| Metric | CGCB | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.27% | 0.06% | |
| AUM | $5.8B | $103.7B | |
| Dividend Yield | 4.19% | 3.31% | |
| Holdings | 727 | 104 | |
| YTD Return | +0.13% | +24.08% | |
| 1Y Return | +2.36% | +31.88% | |
| 3Y Return (annualized) | - | +14.92% | |
| 5Y Return (annualized) | - | +9.85% | |
| Volatility (annualized) | 5.5% | 13.6% | |
| Max Drawdown | -5.2% | -33.4% | |
| Fund Family | Capital Group (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 26, 2023 | Oct 20, 2011 |
CGCB vs SCHD Performance
Capital Group Core Bond ETF (CGCB) is a ETF from Capital Group (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year CGCB returned +2.36% while SCHD returned +31.88%. Year to date, CGCB is up 0.13% versus a gain of 24.08% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 5.5% for CGCB. 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 -5.2% for CGCB 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CGCB charges 0.27% per year while SCHD charges 0.06%. On a $10,000 position that is $27 vs $6 annually, a gap of $21 per year that compounds over a long holding period. On income, CGCB currently yields 4.19% against 3.31% for SCHD.
Holdings Overlap
CGCB and SCHD share 0 holdings out of 451 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, CGCB or SCHD?
CGCB has an expense ratio of 0.27% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, CGCB or SCHD?
Over the past year CGCB returned +2.36% vs +31.88% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), CGCB annualized +5.41% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, CGCB or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 5.5% for CGCB. Worst drawdown: CGCB -5.2% vs SCHD -33.4%.
Should I hold both CGCB and SCHD?
CGCB and SCHD have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGCB and SCHD?
CGCB and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 451 unique securities.
Which pays a higher dividend, CGCB or SCHD?
CGCB yields 4.19% while SCHD yields 3.31%, so CGCB currently pays the higher dividend yield.
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