SBND vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SBND offers more diversification with 836 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SBND

Side-by-Side Comparison

MetricSBNDSCHDWinner
Expense Ratio0.25%0.06%
AUM$205M$103.7B
Dividend Yield4.53%3.31%
Holdings1,184104
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 FamilyColumbia Threadneedle InvestmentsCharles Schwab Asset Management
CategoryFixed IncomeEquity
InceptionSep 21, 2021Oct 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

0.0%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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