SCHD vs USIG
SCHD vs USIG
Schwab US Dividend Equity ETF vs iShares Broad USD Investment Grade Corporate Bond ETF
Quick Verdict
USIG has a lower expense ratio. SCHD delivered stronger 1-year returns. USIG offers more diversification with 9966 holdings.
Side-by-Side Comparison
| Metric | SCHD | USIG | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.04% | |
| AUM | $103.7B | $17.3B | |
| Dividend Yield | 3.31% | 4.72% | |
| Holdings | 104 | 11,462 | |
| YTD Return | +23.31% | -0.21% | |
| 1Y Return | +30.42% | +2.13% | |
| 3Y Return (annualized) | +14.66% | +5.34% | |
| 5Y Return (annualized) | +9.59% | +0.06% | |
| Volatility (annualized) | 13.6% | 7.4% | |
| Max Drawdown | -33.4% | -21.6% | |
| Fund Family | Charles Schwab Asset Management | iShares by BlackRock (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Jan 5, 2007 |
SCHD vs USIG Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and iShares Broad USD Investment Grade Corporate Bond ETF (USIG) is a ETF from iShares by BlackRock (US). Over the past year SCHD returned +30.42% while USIG returned +2.13%. Year to date, SCHD is up 23.31% versus a loss of 0.21% for USIG.
Over three years, SCHD compounded at +14.66% per year against +5.34% for USIG; over five years the annualized figures are +9.59% and +0.06% respectively. Across the full 8-year window we track, SCHD has the edge at +11.34% annualized vs +1.85%. 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 7.4% for USIG. 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 -21.6% for USIG. 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while USIG charges 0.04%. On a $10,000 position that is $6 vs $4 annually, a gap of $2 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 4.72% for USIG.
Holdings Overlap
SCHD and USIG share 1 holdings out of 10065 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 USIG | Difference |
|---|---|---|---|
| ADM | 1.07% | 0.00% | 1.07% |
Frequently Asked Questions
Which is cheaper, SCHD or USIG?
SCHD has an expense ratio of 0.06% while USIG charges 0.04%. USIG is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, SCHD or USIG?
Over the past year SCHD returned +30.42% vs +2.13% for USIG, so SCHD leads on 1-year performance. Over the longest common window we track (8 years), SCHD annualized +11.34% vs +1.85% for USIG. Past performance does not guarantee future results.
Which is riskier, SCHD or USIG?
SCHD has been the more volatile fund at 13.6% annualized versus 7.4% for USIG. Worst drawdown: SCHD -33.4% vs USIG -21.6%.
Should I hold both SCHD and USIG?
SCHD and USIG have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and USIG?
SCHD and USIG share 1 common holdings with a 0.0% weight overlap. Combined, they hold 10065 unique securities.
Which pays a higher dividend, SCHD or USIG?
SCHD yields 3.31% while USIG yields 4.72%, so USIG currently pays the higher dividend yield.
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