BABO vs SCHD
YieldMax BABA Option Income Strategy ETF vs Schwab US Dividend Equity 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 | BABO | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.00% | 0.06% | |
| AUM | $17M | $103.7B | |
| Dividend Yield | 110.77% | 3.31% | |
| Holdings | 11 | 104 | |
| YTD Return | -18.34% | +24.26% | |
| 1Y Return | +0.95% | +31.38% | |
| 3Y Return (annualized) | - | +15.08% | |
| 5Y Return (annualized) | - | +9.72% | |
| Volatility (annualized) | 41.4% | 13.6% | |
| Max Drawdown | -42.6% | -33.4% | |
| Fund Family | YieldMax ETF | Charles Schwab Asset Management | |
| Category | Alternative | Equity | |
| Inception | Aug 7, 2024 | Oct 20, 2011 |
BABO vs SCHD Performance
YieldMax BABA Option Income Strategy ETF (BABO) is a ETF from YieldMax ETF and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year BABO returned +0.95% while SCHD returned +31.38%. Year to date, BABO is down 18.34% versus a gain of 24.26% for SCHD.
Risk: Volatility and Drawdowns
BABO has been the more volatile fund, with annualized monthly volatility of 41.4% compared with 13.6% for SCHD. 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 -42.6% for BABO and -33.4% for SCHD. 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BABO charges 1.00% per year while SCHD charges 0.06%. On a $10,000 position that is $100 vs $6 annually, a gap of $94 per year that compounds over a long holding period. On income, BABO currently yields 110.77% against 3.31% for SCHD.
Holdings Overlap
BABO and SCHD share 0 holdings out of 103 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, BABO or SCHD?
BABO has an expense ratio of 1.00% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $94 per year of difference.
Which performed better, BABO or SCHD?
Over the past year BABO returned +0.95% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), BABO annualized +12.21% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, BABO or SCHD?
BABO has been the more volatile fund at 41.4% annualized versus 13.6% for SCHD. Worst drawdown: BABO -42.6% vs SCHD -33.4%.
Should I hold both BABO and SCHD?
BABO and SCHD have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BABO and SCHD?
BABO and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, BABO or SCHD?
BABO yields 110.77% while SCHD yields 3.31%, so BABO currently pays the higher dividend yield.
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