IBHK vs SCHD
IBHK vs SCHD
iShares iBonds 2031 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. IBHK offers more diversification with 186 holdings.
Side-by-Side Comparison
| Metric | IBHK | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.06% | |
| AUM | $71M | $103.7B | |
| Dividend Yield | 6.47% | 3.31% | |
| Holdings | 283 | 104 | |
| YTD Return | -1.74% | +23.02% | |
| 1Y Return | +0.73% | +30.75% | |
| 3Y Return (annualized) | - | +14.89% | |
| 5Y Return (annualized) | - | +9.38% | |
| Volatility (annualized) | 4.0% | 13.6% | |
| Max Drawdown | -4.8% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | May 22, 2024 | Oct 20, 2011 |
IBHK vs SCHD Performance
iShares iBonds 2031 Term High Yield and Income ETF (IBHK) 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 IBHK returned +0.73% while SCHD returned +30.75%. Year to date, IBHK is down 1.74% versus a gain of 23.02% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 4.0% for IBHK. 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 -4.8% for IBHK 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBHK 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, IBHK currently yields 6.47% against 3.31% for SCHD.
Holdings Overlap
IBHK and SCHD share 0 holdings out of 286 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, IBHK or SCHD?
IBHK 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, IBHK or SCHD?
Over the past year IBHK returned +0.73% vs +30.75% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), IBHK annualized +5.30% vs +11.33% for SCHD. Past performance does not guarantee future results.
Which is riskier, IBHK or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 4.0% for IBHK. Worst drawdown: IBHK -4.8% vs SCHD -33.4%.
Should I hold both IBHK and SCHD?
IBHK and SCHD have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBHK and SCHD?
IBHK and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 286 unique securities.
Which pays a higher dividend, IBHK or SCHD?
IBHK yields 6.47% while SCHD yields 3.31%, so IBHK currently pays the higher dividend yield.
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