SCHD vs SCHJ
SCHD vs SCHJ
Schwab US Dividend Equity ETF vs Schwab 1-5 Year Corporate Bond ETF
Quick Verdict
SCHJ has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | SCHJ | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $103.7B | $848M | |
| Dividend Yield | 3.31% | 4.49% | |
| Holdings | 104 | 3,132 | |
| YTD Return | +23.53% | +0.56% | |
| 1Y Return | +30.95% | +2.72% | |
| 3Y Return (annualized) | +14.72% | +5.13% | |
| 5Y Return (annualized) | +9.56% | +2.21% | |
| Volatility (annualized) | 13.6% | 3.4% | |
| Max Drawdown | -33.4% | -13.6% | |
| Fund Family | Charles Schwab Asset Management | Charles Schwab Asset Management | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Oct 10, 2019 |
SCHD vs SCHJ Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Schwab 1-5 Year Corporate Bond ETF (SCHJ) is a ETF from Charles Schwab Asset Management. Over the past year SCHD returned +30.95% while SCHJ returned +2.72%. Year to date, SCHD is up 23.53% versus a gain of 0.56% for SCHJ.
Over three years, SCHD compounded at +14.72% per year against +5.13% for SCHJ; over five years the annualized figures are +9.56% and +2.21% respectively. Across the full 7-year window we track, SCHD has the edge at +11.35% annualized vs +2.04%. 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 3.4% for SCHJ. 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 -33.4% for SCHD and -13.6% for SCHJ. 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SCHJ charges 0.03%. On a $10,000 position that is $6 vs $3 annually, a gap of $3 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 4.49% for SCHJ.
Holdings Overlap
SCHD and SCHJ share 1 holdings out of 119 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in SCHJ | Difference |
|---|---|---|---|
| GVMXX | 0.04% | 0.38% | 0.34% |
Frequently Asked Questions
Which is cheaper, SCHD or SCHJ?
SCHD has an expense ratio of 0.06% while SCHJ charges 0.03%. SCHJ is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHD or SCHJ?
Over the past year SCHD returned +30.95% vs +2.72% for SCHJ, so SCHD leads on 1-year performance. Over the longest common window we track (7 years), SCHD annualized +11.35% vs +2.04% for SCHJ. Past performance does not guarantee future results.
Which is riskier, SCHD or SCHJ?
SCHD has been the more volatile fund at 13.6% annualized versus 3.4% for SCHJ. Worst drawdown: SCHD -33.4% vs SCHJ -13.6%.
Should I hold both SCHD and SCHJ?
SCHD and SCHJ have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SCHJ?
SCHD and SCHJ share 1 common holdings with a 0.0% weight overlap. Combined, they hold 119 unique securities.
Which pays a higher dividend, SCHD or SCHJ?
SCHD yields 3.31% while SCHJ yields 4.49%, so SCHJ currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.