BCLO vs SCHD
iShares BBB-B CLO Active 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 104 holdings.
Side-by-Side Comparison
| Metric | BCLO | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.06% | |
| AUM | $84M | $108.7B | |
| Dividend Yield | 6.57% | 3.13% | |
| Holdings | 54 | 104 | |
| YTD Return | +3.33% | +26.21% | |
| 1Y Return | +5.77% | +29.99% | |
| 3Y Return (annualized) | - | +15.73% | |
| 5Y Return (annualized) | - | +9.67% | |
| Volatility (annualized) | 2.9% | 13.6% | |
| Max Drawdown | -3.9% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Jan 29, 2025 | Oct 20, 2011 |
BCLO vs SCHD Performance
iShares BBB-B CLO Active ETF (BCLO) 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 BCLO returned +5.77% while SCHD returned +29.99%. Year to date, BCLO is up 3.33% versus a gain of 26.21% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 2.9% for BCLO. 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 -3.9% for BCLO 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 0.14. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BCLO charges 0.45% per year while SCHD charges 0.06%. On a $10,000 position that is $45 vs $6 annually, a gap of $39 per year that compounds over a long holding period. On income, BCLO currently yields 6.57% against 3.13% for SCHD.
Holdings Overlap
BCLO and SCHD share 0 holdings out of 105 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, BCLO or SCHD?
BCLO has an expense ratio of 0.45% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $39 per year of difference.
Which performed better, BCLO or SCHD?
Over the past year BCLO returned +5.77% vs +29.99% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), BCLO annualized +6.65% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, BCLO or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 2.9% for BCLO. Worst drawdown: BCLO -3.9% vs SCHD -33.4%.
Should I hold both BCLO and SCHD?
BCLO and SCHD have a monthly-return correlation of 0.14, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BCLO and SCHD?
BCLO and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.
Which pays a higher dividend, BCLO or SCHD?
BCLO yields 6.57% while SCHD yields 3.13%, so BCLO currently pays the higher dividend yield.
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