HYGH vs SCHD
HYGH vs SCHD
iShares Interest Rate Hedged High Yield Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. HYGH offers more diversification with 867 holdings.
Side-by-Side Comparison
| Metric | HYGH | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.52% | 0.06% | |
| AUM | $595M | $103.7B | |
| Dividend Yield | 6.61% | 3.31% | |
| Holdings | 177 | 104 | |
| YTD Return | +3.68% | +24.26% | |
| 1Y Return | +6.87% | +31.38% | |
| 3Y Return (annualized) | +9.05% | +15.08% | |
| 5Y Return (annualized) | +7.05% | +9.72% | |
| Volatility (annualized) | 6.8% | 13.6% | |
| Max Drawdown | -33.0% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | May 27, 2014 | Oct 20, 2011 |
HYGH vs SCHD Performance
iShares Interest Rate Hedged High Yield Bond ETF (HYGH) 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 HYGH returned +6.87% while SCHD returned +31.38%. Year to date, HYGH is up 3.68% versus a gain of 24.26% for SCHD.
Over three years, HYGH compounded at +9.05% per year against +15.08% for SCHD; over five years the annualized figures are +7.05% and +9.72% respectively. Across the full 12-year window we track, SCHD has the edge at +11.39% annualized vs +1.85%. 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 6.8% for HYGH. 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 -33.0% for HYGH 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HYGH charges 0.52% per year while SCHD charges 0.06%. On a $10,000 position that is $52 vs $6 annually, a gap of $46 per year that compounds over a long holding period. On income, HYGH currently yields 6.61% against 3.31% for SCHD.
Holdings Overlap
HYGH and SCHD share 0 holdings out of 967 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, HYGH or SCHD?
HYGH has an expense ratio of 0.52% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, HYGH or SCHD?
Over the past year HYGH returned +6.87% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (12 years), HYGH annualized +1.85% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, HYGH or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 6.8% for HYGH. Worst drawdown: HYGH -33.0% vs SCHD -33.4%.
Should I hold both HYGH and SCHD?
HYGH and SCHD have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYGH and SCHD?
HYGH and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 967 unique securities.
Which pays a higher dividend, HYGH or SCHD?
HYGH yields 6.61% while SCHD yields 3.31%, so HYGH currently pays the higher dividend yield.
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