MBB vs SCHD
MBB vs SCHD
iShares MBS ETF vs Schwab US Dividend Equity ETF
Quick Verdict
MBB has a lower expense ratio. SCHD delivered stronger 1-year returns. MBB offers more diversification with 2339 holdings.
Side-by-Side Comparison
| Metric | MBB | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.06% | |
| AUM | $39.1B | $103.7B | |
| Dividend Yield | 4.26% | 3.31% | |
| Holdings | 11,178 | 104 | |
| YTD Return | +0.19% | +23.31% | |
| 1Y Return | +3.42% | +30.42% | |
| 3Y Return (annualized) | +4.63% | +14.66% | |
| 5Y Return (annualized) | +0.17% | +9.59% | |
| Volatility (annualized) | 4.3% | 13.6% | |
| Max Drawdown | -18.4% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Mar 13, 2007 | Oct 20, 2011 |
MBB vs SCHD Performance
iShares MBS ETF (MBB) 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 MBB returned +3.42% while SCHD returned +30.42%. Year to date, MBB is up 0.19% versus a gain of 23.31% for SCHD.
Over three years, MBB compounded at +4.63% per year against +14.66% for SCHD; over five years the annualized figures are +0.17% and +9.59% respectively. Across the full 15-year window we track, SCHD has the edge at +11.34% annualized vs +0.48%. 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 4.3% for MBB. 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 -18.4% for MBB 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 0.29. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MBB charges 0.04% per year while SCHD charges 0.06%. On a $10,000 position that is $4 vs $6 annually, a gap of $2 per year that compounds over a long holding period. On income, MBB currently yields 4.26% against 3.31% for SCHD.
Holdings Overlap
MBB and SCHD share 0 holdings out of 2439 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, MBB or SCHD?
MBB has an expense ratio of 0.04% while SCHD charges 0.06%. MBB is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, MBB or SCHD?
Over the past year MBB returned +3.42% vs +30.42% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), MBB annualized +0.48% vs +11.34% for SCHD. Past performance does not guarantee future results.
Which is riskier, MBB or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 4.3% for MBB. Worst drawdown: MBB -18.4% vs SCHD -33.4%.
Should I hold both MBB and SCHD?
MBB and SCHD have a monthly-return correlation of 0.29, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MBB and SCHD?
MBB and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2439 unique securities.
Which pays a higher dividend, MBB or SCHD?
MBB yields 4.26% while SCHD yields 3.31%, so MBB currently pays the higher dividend yield.
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