CMBS vs SCHD
CMBS vs SCHD
iShares CMBS ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. CMBS offers more diversification with 444 holdings.
Side-by-Side Comparison
| Metric | CMBS | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.06% | |
| AUM | $473M | $103.7B | |
| Dividend Yield | 3.57% | 3.31% | |
| Holdings | 467 | 104 | |
| YTD Return | +0.12% | +23.53% | |
| 1Y Return | +2.36% | +30.95% | |
| 3Y Return (annualized) | +5.31% | +14.72% | |
| 5Y Return (annualized) | +0.60% | +9.56% | |
| Volatility (annualized) | 3.9% | 13.6% | |
| Max Drawdown | -16.4% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Feb 14, 2012 | Oct 20, 2011 |
CMBS vs SCHD Performance
iShares CMBS ETF (CMBS) is a ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year CMBS returned +2.36% while SCHD returned +30.95%. Year to date, CMBS is up 0.12% versus a gain of 23.53% for SCHD.
Over three years, CMBS compounded at +5.31% per year against +14.72% for SCHD; over five years the annualized figures are +0.60% and +9.56% respectively. Across the full 15-year window we track, SCHD has the edge at +11.35% annualized vs +0.83%. 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 3.9% for CMBS. 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 -16.4% for CMBS 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 0.20. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CMBS charges 0.25% per year while SCHD charges 0.06%. On a $10,000 position that is $25 vs $6 annually, a gap of $19 per year that compounds over a long holding period. On income, CMBS currently yields 3.57% against 3.31% for SCHD.
Holdings Overlap
CMBS and SCHD share 0 holdings out of 544 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, CMBS or SCHD?
CMBS has an expense ratio of 0.25% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, CMBS or SCHD?
Over the past year CMBS returned +2.36% vs +30.95% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), CMBS annualized +0.83% vs +11.35% for SCHD. Past performance does not guarantee future results.
Which is riskier, CMBS or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 3.9% for CMBS. Worst drawdown: CMBS -16.4% vs SCHD -33.4%.
Should I hold both CMBS and SCHD?
CMBS and SCHD have a monthly-return correlation of 0.20, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CMBS and SCHD?
CMBS and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 544 unique securities.
Which pays a higher dividend, CMBS or SCHD?
CMBS yields 3.57% while SCHD yields 3.31%, so CMBS currently pays the higher dividend yield.
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