BAUG vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricBAUGSCHDWinner
Expense Ratio0.79%0.06%
AUM$195M$103.7B
Dividend Yield0.00%3.31%
Holdings6104
YTD Return+10.69%+24.26%
1Y Return+17.39%+31.38%
3Y Return (annualized)+17.52%+15.08%
5Y Return (annualized)+11.75%+9.72%
Volatility (annualized)11.6%13.6%
Max Drawdown-24.2%-33.4%
Fund FamilyInnovator ETFs TrustCharles Schwab Asset Management
CategoryAlternativeEquity
InceptionJul 31, 2019Oct 20, 2011

BAUG vs SCHD Performance

Innovator U.S. Equity Buffer ETF - August (BAUG) is a ETF from Innovator ETFs Trust and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year BAUG returned +17.39% while SCHD returned +31.38%. Year to date, BAUG is up 10.69% versus a gain of 24.26% for SCHD.

Over three years, BAUG compounded at +17.52% per year against +15.08% for SCHD; over five years the annualized figures are +11.75% and +9.72% respectively. Across the full 7-year window we track, BAUG has the edge at +12.02% annualized vs +11.39%. 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 11.6% for BAUG. 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 -24.2% for BAUG 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 0.81. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

BAUG charges 0.79% per year while SCHD charges 0.06%. On a $10,000 position that is $79 vs $6 annually, a gap of $73 per year that compounds over a long holding period. On income, BAUG currently yields 0.00% against 3.31% for SCHD.

Frequently Asked Questions

Which is cheaper, BAUG or SCHD?

BAUG has an expense ratio of 0.79% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $73 per year of difference.

Which performed better, BAUG or SCHD?

Over the past year BAUG returned +17.39% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (7 years), BAUG annualized +12.02% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, BAUG or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 11.6% for BAUG. Worst drawdown: BAUG -24.2% vs SCHD -33.4%.

Should I hold both BAUG and SCHD?

BAUG and SCHD have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, BAUG or SCHD?

BAUG yields 0.00% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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