GTO vs SCHD
GTO vs SCHD
Invesco Total Return Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. GTO offers more diversification with 1255 holdings.
Side-by-Side Comparison
| Metric | GTO | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.06% | |
| AUM | $2.4B | $103.7B | |
| Dividend Yield | 4.80% | 3.31% | |
| Holdings | 1,621 | 104 | |
| YTD Return | -0.01% | +23.02% | |
| 1Y Return | +2.90% | +30.75% | |
| 3Y Return (annualized) | +4.70% | +14.89% | |
| 5Y Return (annualized) | -0.43% | +9.38% | |
| Volatility (annualized) | 5.7% | 13.6% | |
| Max Drawdown | -21.1% | -33.4% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Feb 10, 2016 | Oct 20, 2011 |
GTO vs SCHD Performance
Invesco Total Return Bond ETF (GTO) is a ETF from Invesco (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year GTO returned +2.90% while SCHD returned +30.75%. Year to date, GTO is down 0.01% versus a gain of 23.02% for SCHD.
Over three years, GTO compounded at +4.70% per year against +14.89% for SCHD; over five years the annualized figures are -0.43% and +9.38% respectively. Across the full 11-year window we track, SCHD has the edge at +11.33% annualized vs +1.24%. 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 5.7% for GTO. 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 -21.1% for GTO 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GTO charges 0.35% per year while SCHD charges 0.06%. On a $10,000 position that is $35 vs $6 annually, a gap of $29 per year that compounds over a long holding period. On income, GTO currently yields 4.80% against 3.31% for SCHD.
Holdings Overlap
GTO and SCHD share 0 holdings out of 1355 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, GTO or SCHD?
GTO has an expense ratio of 0.35% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, GTO or SCHD?
Over the past year GTO returned +2.90% vs +30.75% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (11 years), GTO annualized +1.24% vs +11.33% for SCHD. Past performance does not guarantee future results.
Which is riskier, GTO or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 5.7% for GTO. Worst drawdown: GTO -21.1% vs SCHD -33.4%.
Should I hold both GTO and SCHD?
GTO and SCHD have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GTO and SCHD?
GTO and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1355 unique securities.
Which pays a higher dividend, GTO or SCHD?
GTO yields 4.80% while SCHD yields 3.31%, so GTO currently pays the higher dividend yield.
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