BHK vs SCHD
BlackRock Core Bond Trust vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. BHK offers more diversification with 1,627 holdings.
Side-by-Side Comparison
| Metric | BHK | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 3.68% | 0.06% | |
| AUM | $677M | $108.7B | |
| Dividend Yield | 9.61% | 3.13% | |
| Holdings | 1,627 | 104 | |
| YTD Return | +1.44% | +28.63% | |
| 1Y Return | +4.16% | +32.53% | |
| 3Y Return (annualized) | +5.26% | +16.97% | |
| 5Y Return (annualized) | -3.58% | +10.47% | |
| Volatility (annualized) | 12.5% | 13.7% | |
| Max Drawdown | -45.8% | -33.4% | |
| Fund Family | BlackRock, Inc. (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Nov 30, 2001 | Oct 20, 2011 |
BHK vs SCHD Performance
BlackRock Core Bond Trust (BHK) is a ETF from BlackRock, Inc. (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year BHK returned +4.16% while SCHD returned +32.53%. Year to date, BHK is up 1.44% versus a gain of 28.63% for SCHD.
Over three years, BHK compounded at +5.26% per year against +16.97% for SCHD; over five years the annualized figures are -3.58% and +10.47% respectively. Across the full 15-year window we track, SCHD has the edge at +11.63% annualized vs -0.18%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 12.5% for BHK. 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 -45.8% for BHK 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BHK charges 3.68% per year while SCHD charges 0.06%. On a $10,000 position that is $368 vs $6 annually, a gap of $362 per year that compounds over a long holding period. On income, BHK currently yields 9.61% against 3.13% for SCHD.
Holdings Overlap
BHK and SCHD share 0 holdings out of 1163 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, BHK or SCHD?
BHK has an expense ratio of 3.68% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $362 per year of difference.
Which performed better, BHK or SCHD?
Over the past year BHK returned +4.16% vs +32.53% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), BHK annualized -0.18% vs +11.63% for SCHD. Past performance does not guarantee future results.
Which is riskier, BHK or SCHD?
SCHD has been the more volatile fund at 13.7% annualized versus 12.5% for BHK. Worst drawdown: BHK -45.8% vs SCHD -33.4%.
Should I hold both BHK and SCHD?
BHK and SCHD have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BHK and SCHD?
BHK and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1163 unique securities.
Which pays a higher dividend, BHK or SCHD?
BHK yields 9.61% while SCHD yields 3.13%, so BHK currently pays the higher dividend yield.
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