SBND vs SCHD
SBND vs SCHD
Columbia Short Duration Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SBND offers more diversification with 836 holdings.
Side-by-Side Comparison
| Metric | SBND | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.06% | |
| AUM | $205M | $103.7B | |
| Dividend Yield | 4.53% | 3.31% | |
| Holdings | 1,184 | 104 | |
| YTD Return | +0.69% | +23.02% | |
| 1Y Return | +3.14% | +30.75% | |
| 3Y Return (annualized) | +5.57% | +14.89% | |
| 5Y Return (annualized) | - | +9.38% | |
| Volatility (annualized) | 4.0% | 13.6% | |
| Max Drawdown | -10.8% | -33.4% | |
| Fund Family | Columbia Threadneedle Investments | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 21, 2021 | Oct 20, 2011 |
SBND vs SCHD Performance
Columbia Short Duration Bond ETF (SBND) is a ETF from Columbia Threadneedle Investments and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year SBND returned +3.14% while SCHD returned +30.75%. Year to date, SBND is up 0.69% versus a gain of 23.02% for SCHD.
Over three years, SBND compounded at +5.57% per year against +14.89% for SCHD. Across the full 5-year window we track, SCHD has the edge at +11.33% annualized vs +2.27%. 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 4.0% for SBND. 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 -10.8% for SBND 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
SBND charges 0.25% per year while SCHD charges 0.06%. On a $10,000 position that is $25 vs $6 annually, a gap of $19 per year that compounds over a long holding period. On income, SBND currently yields 4.53% against 3.31% for SCHD.
Holdings Overlap
SBND and SCHD share 0 holdings out of 936 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, SBND or SCHD?
SBND has an expense ratio of 0.25% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, SBND or SCHD?
Over the past year SBND returned +3.14% vs +30.75% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), SBND annualized +2.27% vs +11.33% for SCHD. Past performance does not guarantee future results.
Which is riskier, SBND or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 4.0% for SBND. Worst drawdown: SBND -10.8% vs SCHD -33.4%.
Should I hold both SBND and SCHD?
SBND 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 SBND and SCHD?
SBND and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 936 unique securities.
Which pays a higher dividend, SBND or SCHD?
SBND yields 4.53% while SCHD yields 3.31%, so SBND currently pays the higher dividend yield.
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