SCHD vs TAGG
SCHD vs TAGG
Schwab US Dividend Equity ETF vs T Rowe Price QM US Bond ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. TAGG offers more diversification with 1212 holdings.
Side-by-Side Comparison
| Metric | SCHD | TAGG | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.08% | |
| AUM | $103.7B | $2.3B | |
| Dividend Yield | 3.31% | 4.57% | |
| Holdings | 104 | 1,595 | |
| YTD Return | +22.69% | -0.54% | |
| 1Y Return | +30.94% | +2.99% | |
| 3Y Return (annualized) | +14.20% | +4.13% | |
| 5Y Return (annualized) | +9.59% | - | |
| Volatility (annualized) | 13.7% | 6.7% | |
| Max Drawdown | -33.4% | -17.3% | |
| Fund Family | Charles Schwab Asset Management | T.Rowe Price | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Sep 28, 2021 |
SCHD vs TAGG Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and T Rowe Price QM US Bond ETF (TAGG) is a ETF from T.Rowe Price. Over the past year SCHD returned +30.94% while TAGG returned +2.99%. Year to date, SCHD is up 22.69% versus a loss of 0.54% for TAGG.
Over three years, SCHD compounded at +14.20% per year against +4.13% for TAGG. Across the full 5-year window we track, SCHD has the edge at +11.31% annualized vs +0.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 6.7% for TAGG. 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 -17.3% for TAGG. 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TAGG charges 0.08%. On a $10,000 position that is $6 vs $8 annually, a gap of $2 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 4.57% for TAGG.
Holdings Overlap
SCHD and TAGG share 0 holdings out of 1312 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, SCHD or TAGG?
SCHD has an expense ratio of 0.06% while TAGG charges 0.08%. SCHD is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, SCHD or TAGG?
Over the past year SCHD returned +30.94% vs +2.99% for TAGG, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), SCHD annualized +11.31% vs +0.01% for TAGG. Past performance does not guarantee future results.
Which is riskier, SCHD or TAGG?
SCHD has been the more volatile fund at 13.7% annualized versus 6.7% for TAGG. Worst drawdown: SCHD -33.4% vs TAGG -17.3%.
Should I hold both SCHD and TAGG?
SCHD and TAGG have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TAGG?
SCHD and TAGG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1312 unique securities.
Which pays a higher dividend, SCHD or TAGG?
SCHD yields 3.31% while TAGG yields 4.57%, so TAGG currently pays the higher dividend yield.
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