SCHD vs SPBO
SCHD vs SPBO
Schwab US Dividend Equity ETF vs State Street SPDR Portfolio Corporate Bond ETF
Quick Verdict
SPBO has a lower expense ratio. SCHD delivered stronger 1-year returns. SPBO offers more diversification with 954 holdings.
Side-by-Side Comparison
| Metric | SCHD | SPBO | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $103.7B | $2.1B | |
| Dividend Yield | 3.31% | 5.10% | |
| Holdings | 104 | 4,021 | |
| YTD Return | +24.26% | -0.31% | |
| 1Y Return | +31.38% | +2.12% | |
| 3Y Return (annualized) | +15.08% | +5.05% | |
| 5Y Return (annualized) | +9.72% | +0.02% | |
| Volatility (annualized) | 13.6% | 6.1% | |
| Max Drawdown | -33.4% | -22.4% | |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Apr 6, 2011 |
SCHD vs SPBO Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and State Street SPDR Portfolio Corporate Bond ETF (SPBO) is a ETF from State Street Investment Management. Over the past year SCHD returned +31.38% while SPBO returned +2.12%. Year to date, SCHD is up 24.26% versus a loss of 0.31% for SPBO.
Over three years, SCHD compounded at +15.08% per year against +5.05% for SPBO; over five years the annualized figures are +9.72% and +0.02% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +1.11%. 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 6.1% for SPBO. 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 -22.4% for SPBO. 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SPBO 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 5.10% for SPBO.
Holdings Overlap
SCHD and SPBO share 1 holdings out of 1053 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 SPBO | Difference |
|---|---|---|---|
| GVMXX | 0.04% | 1.64% | 1.60% |
Frequently Asked Questions
Which is cheaper, SCHD or SPBO?
SCHD has an expense ratio of 0.06% while SPBO charges 0.03%. SPBO is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHD or SPBO?
Over the past year SCHD returned +31.38% vs +2.12% for SPBO, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs +1.11% for SPBO. Past performance does not guarantee future results.
Which is riskier, SCHD or SPBO?
SCHD has been the more volatile fund at 13.6% annualized versus 6.1% for SPBO. Worst drawdown: SCHD -33.4% vs SPBO -22.4%.
Should I hold both SCHD and SPBO?
SCHD and SPBO have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SPBO?
SCHD and SPBO share 1 common holdings with a 0.0% weight overlap. Combined, they hold 1053 unique securities.
Which pays a higher dividend, SCHD or SPBO?
SCHD yields 3.31% while SPBO yields 5.10%, so SPBO currently pays the higher dividend yield.
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