SCHD vs TLT
SCHD vs TLT
Schwab US Dividend Equity ETF vs iShares 20+ Year Treasury Bond ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | TLT | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.15% | |
| AUM | $103.7B | $43.0B | |
| Dividend Yield | 3.31% | 4.53% | |
| Holdings | 104 | 48 | |
| YTD Return | +23.31% | -2.47% | |
| 1Y Return | +30.42% | -2.13% | |
| 3Y Return (annualized) | +14.66% | -0.26% | |
| 5Y Return (annualized) | +9.59% | -7.93% | |
| Volatility (annualized) | 13.6% | 13.4% | |
| Max Drawdown | -33.4% | -48.7% | |
| Fund Family | Charles Schwab Asset Management | iShares by BlackRock (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Jul 22, 2002 |
SCHD vs TLT Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and iShares 20+ Year Treasury Bond ETF (TLT) is a ETF from iShares by BlackRock (US). Over the past year SCHD returned +30.42% while TLT returned -2.13%. Year to date, SCHD is up 23.31% versus a loss of 2.47% for TLT.
Over three years, SCHD compounded at +14.66% per year against -0.26% for TLT; over five years the annualized figures are +9.59% and -7.93% respectively. Across the full 15-year window we track, SCHD has the edge at +11.34% annualized vs +0.82%. 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 13.4% for TLT. 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 -48.7% for TLT. 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 0.01. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TLT charges 0.15%. On a $10,000 position that is $6 vs $15 annually, a gap of $9 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 4.53% for TLT.
Holdings Overlap
SCHD and TLT share 0 holdings out of 144 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 TLT?
SCHD has an expense ratio of 0.06% while TLT charges 0.15%. SCHD is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, SCHD or TLT?
Over the past year SCHD returned +30.42% vs -2.13% for TLT, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.34% vs +0.82% for TLT. Past performance does not guarantee future results.
Which is riskier, SCHD or TLT?
SCHD has been the more volatile fund at 13.6% annualized versus 13.4% for TLT. Worst drawdown: SCHD -33.4% vs TLT -48.7%.
Should I hold both SCHD and TLT?
SCHD and TLT have a monthly-return correlation of 0.01, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TLT?
SCHD and TLT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 144 unique securities.
Which pays a higher dividend, SCHD or TLT?
SCHD yields 3.31% while TLT yields 4.53%, so TLT currently pays the higher dividend yield.
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