BGH vs SCHD
Barings Global Short Duration High Yield Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. BGH offers more diversification with 107 holdings.
Side-by-Side Comparison
| Metric | BGH | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 3.88% | 0.06% | |
| AUM | $298M | $103.7B | |
| Dividend Yield | 11.44% | 3.31% | |
| Holdings | 248 | 104 | |
| YTD Return | +0.65% | +25.33% | |
| 1Y Return | -0.14% | +32.31% | |
| 3Y Return (annualized) | +13.53% | +15.40% | |
| 5Y Return (annualized) | +6.87% | +9.70% | |
| Volatility (annualized) | 15.9% | 13.6% | |
| Max Drawdown | -63.8% | -33.4% | |
| Fund Family | Barings | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Oct 26, 2012 | Oct 20, 2011 |
BGH vs SCHD Performance
Barings Global Short Duration High Yield Fund (BGH) is a ETF from Barings and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year BGH returned -0.14% while SCHD returned +32.31%. Year to date, BGH is up 0.65% versus a gain of 25.33% for SCHD.
Over three years, BGH compounded at +13.53% per year against +15.40% for SCHD; over five years the annualized figures are +6.87% and +9.70% respectively. Across the full 14-year window we track, SCHD has the edge at +11.45% annualized vs -0.14%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BGH has been the more volatile fund, with annualized monthly volatility of 15.9% 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 -63.8% for BGH 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BGH charges 3.88% per year while SCHD charges 0.06%. On a $10,000 position that is $388 vs $6 annually, a gap of $382 per year that compounds over a long holding period. On income, BGH currently yields 11.44% against 3.31% for SCHD.
Holdings Overlap
BGH and SCHD share 0 holdings out of 207 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, BGH or SCHD?
BGH has an expense ratio of 3.88% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $382 per year of difference.
Which performed better, BGH or SCHD?
Over the past year BGH returned -0.14% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (14 years), BGH annualized -0.14% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, BGH or SCHD?
BGH has been the more volatile fund at 15.9% annualized versus 13.6% for SCHD. Worst drawdown: BGH -63.8% vs SCHD -33.4%.
Should I hold both BGH and SCHD?
BGH and SCHD have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BGH and SCHD?
BGH and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 207 unique securities.
Which pays a higher dividend, BGH or SCHD?
BGH yields 11.44% while SCHD yields 3.31%, so BGH currently pays the higher dividend yield.
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