SCHD vs SPAB
SCHD vs SPAB
Schwab US Dividend Equity ETF vs State Street SPDR Portfolio Aggregate Bond ETF
Quick Verdict
SPAB has a lower expense ratio. SCHD delivered stronger 1-year returns. SPAB offers more diversification with 1516 holdings.
Side-by-Side Comparison
| Metric | SCHD | SPAB | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $103.7B | $9.8B | |
| Dividend Yield | 3.31% | 4.03% | |
| Holdings | 104 | 8,145 | |
| YTD Return | +24.08% | -0.27% | |
| 1Y Return | +31.88% | +2.00% | |
| 3Y Return (annualized) | +14.92% | +4.10% | |
| 5Y Return (annualized) | +9.85% | -0.43% | |
| Volatility (annualized) | 13.6% | 4.4% | |
| Max Drawdown | -33.4% | -19.5% | |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | May 23, 2007 |
SCHD vs SPAB Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and State Street SPDR Portfolio Aggregate Bond ETF (SPAB) is a ETF from State Street Investment Management. Over the past year SCHD returned +31.88% while SPAB returned +2.00%. Year to date, SCHD is up 24.08% versus a loss of 0.27% for SPAB.
Over three years, SCHD compounded at +14.92% per year against +4.10% for SPAB; over five years the annualized figures are +9.85% and -0.43% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +0.70%. 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 4.4% for SPAB. 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 -19.5% for SPAB. 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SPAB 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 4.03% for SPAB.
Holdings Overlap
SCHD and SPAB share 1 holdings out of 1615 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 SPAB | Difference |
|---|---|---|---|
| GVMXX | 0.04% | 2.67% | 2.63% |
Frequently Asked Questions
Which is cheaper, SCHD or SPAB?
SCHD has an expense ratio of 0.06% while SPAB charges 0.03%. SPAB is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHD or SPAB?
Over the past year SCHD returned +31.88% vs +2.00% for SPAB, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs +0.70% for SPAB. Past performance does not guarantee future results.
Which is riskier, SCHD or SPAB?
SCHD has been the more volatile fund at 13.6% annualized versus 4.4% for SPAB. Worst drawdown: SCHD -33.4% vs SPAB -19.5%.
Should I hold both SCHD and SPAB?
SCHD and SPAB have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SPAB?
SCHD and SPAB share 1 common holdings with a 0.0% weight overlap. Combined, they hold 1615 unique securities.
Which pays a higher dividend, SCHD or SPAB?
SCHD yields 3.31% while SPAB yields 4.03%, so SPAB currently pays the higher dividend yield.
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