SCHD vs USHY
SCHD vs USHY
Schwab US Dividend Equity ETF vs iShares Broad USD High Yield Corporate Bond ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. USHY offers more diversification with 1577 holdings.
Side-by-Side Comparison
| Metric | SCHD | USHY | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.08% | |
| AUM | $103.7B | $29.0B | |
| Dividend Yield | 3.31% | 6.89% | |
| Holdings | 104 | 1,893 | |
| YTD Return | +22.69% | -1.71% | |
| 1Y Return | +30.94% | +1.21% | |
| 3Y Return (annualized) | +14.20% | +7.04% | |
| 5Y Return (annualized) | +9.59% | +3.25% | |
| Volatility (annualized) | 13.7% | 9.7% | |
| Max Drawdown | -33.4% | -31.0% | |
| Fund Family | Charles Schwab Asset Management | iShares by BlackRock (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Oct 25, 2017 |
SCHD vs USHY Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and iShares Broad USD High Yield Corporate Bond ETF (USHY) is a ETF from iShares by BlackRock (US). Over the past year SCHD returned +30.94% while USHY returned +1.21%. Year to date, SCHD is up 22.69% versus a loss of 1.71% for USHY.
Over three years, SCHD compounded at +14.20% per year against +7.04% for USHY; over five years the annualized figures are +9.59% and +3.25% respectively. Across the full 9-year window we track, SCHD has the edge at +11.31% annualized vs +2.09%. 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 9.7% for USHY. 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 -31.0% for USHY. 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while USHY 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 6.89% for USHY.
Holdings Overlap
SCHD and USHY share 0 holdings out of 1677 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 USHY?
SCHD has an expense ratio of 0.06% while USHY 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 USHY?
Over the past year SCHD returned +30.94% vs +1.21% for USHY, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), SCHD annualized +11.31% vs +2.09% for USHY. Past performance does not guarantee future results.
Which is riskier, SCHD or USHY?
SCHD has been the more volatile fund at 13.7% annualized versus 9.7% for USHY. Worst drawdown: SCHD -33.4% vs USHY -31.0%.
Should I hold both SCHD and USHY?
SCHD and USHY have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and USHY?
SCHD and USHY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1677 unique securities.
Which pays a higher dividend, SCHD or USHY?
SCHD yields 3.31% while USHY yields 6.89%, so USHY currently pays the higher dividend yield.
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