GHYG vs SCHD
GHYG vs SCHD
iShares US & International High Yield Corp Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. GHYG offers more diversification with 780 holdings.
Side-by-Side Comparison
| Metric | GHYG | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.06% | |
| AUM | $193M | $103.7B | |
| Dividend Yield | 6.24% | 3.31% | |
| Holdings | 1,730 | 104 | |
| YTD Return | -1.95% | +24.26% | |
| 1Y Return | +0.27% | +31.38% | |
| 3Y Return (annualized) | +6.95% | +15.08% | |
| 5Y Return (annualized) | +2.71% | +9.72% | |
| Volatility (annualized) | 8.0% | 13.6% | |
| Max Drawdown | -52.4% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2012 | Oct 20, 2011 |
GHYG vs SCHD Performance
iShares US & International High Yield Corp Bond ETF (GHYG) 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 GHYG returned +0.27% while SCHD returned +31.38%. Year to date, GHYG is down 1.95% versus a gain of 24.26% for SCHD.
Over three years, GHYG compounded at +6.95% per year against +15.08% for SCHD; over five years the annualized figures are +2.71% and +9.72% respectively. Across the full 14-year window we track, SCHD has the edge at +11.39% annualized vs +4.23%. 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 8.0% for GHYG. 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 -52.4% for GHYG 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GHYG charges 0.40% per year while SCHD charges 0.06%. On a $10,000 position that is $40 vs $6 annually, a gap of $34 per year that compounds over a long holding period. On income, GHYG currently yields 6.24% against 3.31% for SCHD.
Holdings Overlap
GHYG and SCHD share 0 holdings out of 880 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, GHYG or SCHD?
GHYG has an expense ratio of 0.40% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $34 per year of difference.
Which performed better, GHYG or SCHD?
Over the past year GHYG returned +0.27% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (14 years), GHYG annualized +4.23% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, GHYG or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 8.0% for GHYG. Worst drawdown: GHYG -52.4% vs SCHD -33.4%.
Should I hold both GHYG and SCHD?
GHYG and SCHD have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GHYG and SCHD?
GHYG and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 880 unique securities.
Which pays a higher dividend, GHYG or SCHD?
GHYG yields 6.24% while SCHD yields 3.31%, so GHYG currently pays the higher dividend yield.
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