LQDB vs SCHD
LQDB vs SCHD
iShares BBB Rated Corporate Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. LQDB offers more diversification with 1126 holdings.
Side-by-Side Comparison
| Metric | LQDB | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.06% | |
| AUM | $59M | $103.7B | |
| Dividend Yield | 4.68% | 3.31% | |
| Holdings | 1,673 | 104 | |
| YTD Return | -0.20% | +24.26% | |
| 1Y Return | +2.06% | +31.38% | |
| 3Y Return (annualized) | +5.24% | +15.08% | |
| 5Y Return (annualized) | +0.30% | +9.72% | |
| Volatility (annualized) | 7.8% | 13.6% | |
| Max Drawdown | -21.6% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | May 18, 2021 | Oct 20, 2011 |
LQDB vs SCHD Performance
iShares BBB Rated Corporate Bond ETF (LQDB) 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 LQDB returned +2.06% while SCHD returned +31.38%. Year to date, LQDB is down 0.20% versus a gain of 24.26% for SCHD.
Over three years, LQDB compounded at +5.24% per year against +15.08% for SCHD; over five years the annualized figures are +0.30% and +9.72% respectively. Across the full 5-year window we track, SCHD has the edge at +11.39% annualized vs +0.77%. 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 7.8% for LQDB. 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 LQDB 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LQDB 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, LQDB currently yields 4.68% against 3.31% for SCHD.
Holdings Overlap
LQDB and SCHD share 0 holdings out of 1226 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, LQDB or SCHD?
LQDB 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, LQDB or SCHD?
Over the past year LQDB returned +2.06% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), LQDB annualized +0.77% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, LQDB or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 7.8% for LQDB. Worst drawdown: LQDB -21.6% vs SCHD -33.4%.
Should I hold both LQDB and SCHD?
LQDB and SCHD have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LQDB and SCHD?
LQDB and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1226 unique securities.
Which pays a higher dividend, LQDB or SCHD?
LQDB yields 4.68% while SCHD yields 3.31%, so LQDB currently pays the higher dividend yield.
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