IEF vs SCHD
IEF vs SCHD
iShares 7-10 Year Treasury Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | IEF | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.06% | |
| AUM | $47.3B | $103.7B | |
| Dividend Yield | 3.88% | 3.31% | |
| Holdings | 15 | 104 | |
| YTD Return | -0.98% | +23.31% | |
| 1Y Return | +0.94% | +30.42% | |
| 3Y Return (annualized) | +3.50% | +14.66% | |
| 5Y Return (annualized) | -1.49% | +9.59% | |
| Volatility (annualized) | 6.6% | 13.6% | |
| Max Drawdown | -23.9% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Jul 22, 2002 | Oct 20, 2011 |
IEF vs SCHD Performance
iShares 7-10 Year Treasury Bond ETF (IEF) 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 IEF returned +0.94% while SCHD returned +30.42%. Year to date, IEF is down 0.98% versus a gain of 23.31% for SCHD.
Over three years, IEF compounded at +3.50% per year against +14.66% for SCHD; over five years the annualized figures are -1.49% and +9.59% respectively. Across the full 15-year window we track, SCHD has the edge at +11.34% annualized vs +3.35%. 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 6.6% for IEF. 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 -23.9% for IEF 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 0.03. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IEF charges 0.15% per year while SCHD charges 0.06%. On a $10,000 position that is $15 vs $6 annually, a gap of $9 per year that compounds over a long holding period. On income, IEF currently yields 3.88% against 3.31% for SCHD.
Holdings Overlap
IEF and SCHD share 0 holdings out of 112 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, IEF or SCHD?
IEF has an expense ratio of 0.15% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, IEF or SCHD?
Over the past year IEF returned +0.94% vs +30.42% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), IEF annualized +3.35% vs +11.34% for SCHD. Past performance does not guarantee future results.
Which is riskier, IEF or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 6.6% for IEF. Worst drawdown: IEF -23.9% vs SCHD -33.4%.
Should I hold both IEF and SCHD?
IEF and SCHD have a monthly-return correlation of 0.03, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IEF and SCHD?
IEF and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 112 unique securities.
Which pays a higher dividend, IEF or SCHD?
IEF yields 3.88% while SCHD yields 3.31%, so IEF currently pays the higher dividend yield.
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