GOVT vs SCHD
GOVT vs SCHD
iShares US Treasury Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
GOVT has a lower expense ratio. SCHD delivered stronger 1-year returns. GOVT offers more diversification with 188 holdings.
Side-by-Side Comparison
| Metric | GOVT | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.06% | |
| AUM | $43.6B | $103.7B | |
| Dividend Yield | 3.57% | 3.31% | |
| Holdings | 216 | 104 | |
| YTD Return | -2.19% | +23.31% | |
| 1Y Return | -0.85% | +30.42% | |
| 3Y Return (annualized) | +2.49% | +14.66% | |
| 5Y Return (annualized) | -1.33% | +9.59% | |
| Volatility (annualized) | 4.5% | 13.6% | |
| Max Drawdown | -23.4% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Feb 14, 2012 | Oct 20, 2011 |
GOVT vs SCHD Performance
iShares US Treasury Bond ETF (GOVT) 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 GOVT returned -0.85% while SCHD returned +30.42%. Year to date, GOVT is down 2.19% versus a gain of 23.31% for SCHD.
Over three years, GOVT compounded at +2.49% per year against +14.66% for SCHD; over five years the annualized figures are -1.33% and +9.59% respectively. Across the full 14-year window we track, SCHD has the edge at +11.34% annualized vs +1.05%. 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 4.5% for GOVT. 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 -23.4% for GOVT 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 0.03. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GOVT charges 0.05% per year while SCHD charges 0.06%. On a $10,000 position that is $5 vs $6 annually, a gap of $1 per year that compounds over a long holding period. On income, GOVT currently yields 3.57% against 3.31% for SCHD.
Holdings Overlap
GOVT and SCHD share 0 holdings out of 288 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, GOVT or SCHD?
GOVT has an expense ratio of 0.05% while SCHD charges 0.06%. GOVT is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, GOVT or SCHD?
Over the past year GOVT returned -0.85% vs +30.42% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (14 years), GOVT annualized +1.05% vs +11.34% for SCHD. Past performance does not guarantee future results.
Which is riskier, GOVT or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 4.5% for GOVT. Worst drawdown: GOVT -23.4% vs SCHD -33.4%.
Should I hold both GOVT and SCHD?
GOVT and SCHD have a monthly-return correlation of 0.03, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GOVT and SCHD?
GOVT and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 288 unique securities.
Which pays a higher dividend, GOVT or SCHD?
GOVT yields 3.57% while SCHD yields 3.31%, so GOVT currently pays the higher dividend yield.
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