SCHD vs SCHZ
SCHD vs SCHZ
Schwab US Dividend Equity ETF vs Schwab US Aggregate Bond ETF
Quick Verdict
SCHZ has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHZ offers more diversification with 696 holdings.
Side-by-Side Comparison
| Metric | SCHD | SCHZ | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $103.7B | $10.5B | |
| Dividend Yield | 3.31% | 4.10% | |
| Holdings | 104 | 11,809 | |
| YTD Return | +24.08% | -0.32% | |
| 1Y Return | +31.88% | +2.00% | |
| 3Y Return (annualized) | +14.92% | +3.97% | |
| 5Y Return (annualized) | +9.85% | -0.52% | |
| Volatility (annualized) | 13.6% | 4.5% | |
| Max Drawdown | -33.4% | -19.7% | |
| Fund Family | Charles Schwab Asset Management | Charles Schwab Asset Management | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Jul 14, 2011 |
SCHD vs SCHZ Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Schwab US Aggregate Bond ETF (SCHZ) is a ETF from Charles Schwab Asset Management. Over the past year SCHD returned +31.88% while SCHZ returned +2.00%. Year to date, SCHD is up 24.08% versus a loss of 0.32% for SCHZ.
Over three years, SCHD compounded at +14.92% per year against +3.97% for SCHZ; over five years the annualized figures are +9.85% and -0.52% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +0.56%. 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 4.5% for SCHZ. 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 -19.7% for SCHZ. 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 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SCHZ 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 4.10% for SCHZ.
Holdings Overlap
SCHD and SCHZ share 1 holdings out of 795 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 SCHZ | Difference |
|---|---|---|---|
| GVMXX | 0.04% | 1.50% | 1.46% |
Frequently Asked Questions
Which is cheaper, SCHD or SCHZ?
SCHD has an expense ratio of 0.06% while SCHZ charges 0.03%. SCHZ is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHD or SCHZ?
Over the past year SCHD returned +31.88% vs +2.00% for SCHZ, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs +0.56% for SCHZ. Past performance does not guarantee future results.
Which is riskier, SCHD or SCHZ?
SCHD has been the more volatile fund at 13.6% annualized versus 4.5% for SCHZ. Worst drawdown: SCHD -33.4% vs SCHZ -19.7%.
Should I hold both SCHD and SCHZ?
SCHD and SCHZ have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SCHZ?
SCHD and SCHZ share 1 common holdings with a 0.0% weight overlap. Combined, they hold 795 unique securities.
Which pays a higher dividend, SCHD or SCHZ?
SCHD yields 3.31% while SCHZ yields 4.10%, so SCHZ currently pays the higher dividend yield.
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