IBHI vs SCHD
IBHI vs SCHD
iShares iBonds 2029 Term High Yield and Income ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. IBHI offers more diversification with 376 holdings.
Side-by-Side Comparison
| Metric | IBHI | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.06% | |
| AUM | $495M | $103.7B | |
| Dividend Yield | 6.70% | 3.31% | |
| Holdings | 381 | 104 | |
| YTD Return | -1.36% | +22.69% | |
| 1Y Return | +1.40% | +30.94% | |
| 3Y Return (annualized) | +7.06% | +14.20% | |
| 5Y Return (annualized) | - | +9.59% | |
| Volatility (annualized) | 8.8% | 13.7% | |
| Max Drawdown | -13.7% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Mar 8, 2022 | Oct 20, 2011 |
IBHI vs SCHD Performance
iShares iBonds 2029 Term High Yield and Income ETF (IBHI) 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 IBHI returned +1.40% while SCHD returned +30.94%. Year to date, IBHI is down 1.36% versus a gain of 22.69% for SCHD.
Over three years, IBHI compounded at +7.06% per year against +14.20% for SCHD. Across the full 4-year window we track, SCHD has the edge at +11.31% annualized vs +4.18%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 8.8% for IBHI. 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 -13.7% for IBHI 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
IBHI 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, IBHI currently yields 6.70% against 3.31% for SCHD.
Holdings Overlap
IBHI and SCHD share 0 holdings out of 476 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, IBHI or SCHD?
IBHI 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, IBHI or SCHD?
Over the past year IBHI returned +1.40% vs +30.94% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), IBHI annualized +4.18% vs +11.31% for SCHD. Past performance does not guarantee future results.
Which is riskier, IBHI or SCHD?
SCHD has been the more volatile fund at 13.7% annualized versus 8.8% for IBHI. Worst drawdown: IBHI -13.7% vs SCHD -33.4%.
Should I hold both IBHI and SCHD?
IBHI 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 IBHI and SCHD?
IBHI and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 476 unique securities.
Which pays a higher dividend, IBHI or SCHD?
IBHI yields 6.70% while SCHD yields 3.31%, so IBHI currently pays the higher dividend yield.
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