HYDB vs SCHD
HYDB vs SCHD
iShares High Yield Systematic Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. HYDB offers more diversification with 203 holdings.
Side-by-Side Comparison
| Metric | HYDB | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.06% | |
| AUM | $1.6B | $103.7B | |
| Dividend Yield | 6.99% | 3.31% | |
| Holdings | 265 | 104 | |
| YTD Return | -2.44% | +23.02% | |
| 1Y Return | +0.19% | +30.75% | |
| 3Y Return (annualized) | +6.95% | +14.89% | |
| 5Y Return (annualized) | +3.61% | +9.38% | |
| Volatility (annualized) | 7.7% | 13.6% | |
| Max Drawdown | -21.6% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Jul 11, 2017 | Oct 20, 2011 |
HYDB vs SCHD Performance
iShares High Yield Systematic Bond ETF (HYDB) 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 HYDB returned +0.19% while SCHD returned +30.75%. Year to date, HYDB is down 2.44% versus a gain of 23.02% for SCHD.
Over three years, HYDB compounded at +6.95% per year against +14.89% for SCHD; over five years the annualized figures are +3.61% and +9.38% respectively. Across the full 9-year window we track, SCHD has the edge at +11.33% annualized vs +4.90%. 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 7.7% for HYDB. 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 -21.6% for HYDB 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HYDB 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, HYDB currently yields 6.99% against 3.31% for SCHD.
Holdings Overlap
HYDB and SCHD share 0 holdings out of 303 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, HYDB or SCHD?
HYDB 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, HYDB or SCHD?
Over the past year HYDB returned +0.19% vs +30.75% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), HYDB annualized +4.90% vs +11.33% for SCHD. Past performance does not guarantee future results.
Which is riskier, HYDB or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 7.7% for HYDB. Worst drawdown: HYDB -21.6% vs SCHD -33.4%.
Should I hold both HYDB and SCHD?
HYDB and SCHD have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYDB and SCHD?
HYDB and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 303 unique securities.
Which pays a higher dividend, HYDB or SCHD?
HYDB yields 6.99% while SCHD yields 3.31%, so HYDB currently pays the higher dividend yield.
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