BAI vs SCHD
iShares AI Innovation and Tech Active ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. BAI delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | BAI | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.06% | |
| AUM | $12.8B | $103.7B | |
| Dividend Yield | 1.17% | 3.31% | |
| Holdings | 59 | 104 | |
| YTD Return | +31.34% | +25.62% | |
| 1Y Return | +43.25% | +32.62% | |
| 3Y Return (annualized) | - | +15.58% | |
| 5Y Return (annualized) | - | +9.63% | |
| Volatility (annualized) | 38.3% | 13.6% | |
| Max Drawdown | -34.1% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Oct 21, 2024 | Oct 20, 2011 |
BAI vs SCHD Performance
iShares AI Innovation and Tech Active ETF (BAI) is a ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year BAI returned +43.25% while SCHD returned +32.62%. Year to date, BAI is up 31.34% versus a gain of 25.62% for SCHD.
Risk: Volatility and Drawdowns
BAI has been the more volatile fund, with annualized monthly volatility of 38.3% 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 -34.1% for BAI 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 0.01. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BAI charges 0.55% per year while SCHD charges 0.06%. On a $10,000 position that is $55 vs $6 annually, a gap of $49 per year that compounds over a long holding period. On income, BAI currently yields 1.17% against 3.31% for SCHD.
Holdings Overlap
BAI and SCHD 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, BAI or SCHD?
BAI has an expense ratio of 0.55% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $49 per year of difference.
Which performed better, BAI or SCHD?
Over the past year BAI returned +43.25% vs +32.62% for SCHD, so BAI leads on 1-year performance. Over the longest common window we track (2 years), BAI annualized +38.79% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, BAI or SCHD?
BAI has been the more volatile fund at 38.3% annualized versus 13.6% for SCHD. Worst drawdown: BAI -34.1% vs SCHD -33.4%.
Should I hold both BAI and SCHD?
BAI and SCHD 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 BAI and SCHD?
BAI and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 144 unique securities.
Which pays a higher dividend, BAI or SCHD?
BAI yields 1.17% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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