BILS 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

MetricBILSSCHDWinner
Expense Ratio0.14%0.06%
AUM$3.9B$103.7B
Dividend Yield3.80%3.31%
Holdings25104
YTD Return+1.75%+25.33%
1Y Return+3.44%+32.31%
3Y Return (annualized)+4.45%+15.40%
5Y Return (annualized)+3.38%+9.70%
Volatility (annualized)0.7%13.6%
Max Drawdown-0.4%-33.4%
Fund FamilyState Street Investment ManagementCharles Schwab Asset Management
CategoryFixed IncomeEquity
InceptionSep 24, 2020Oct 20, 2011

BILS vs SCHD Performance

State Street SPDR Bloomberg 3-12 Month T-Bill ETF (BILS) is a ETF from State Street Investment Management and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year BILS returned +3.44% while SCHD returned +32.31%. Year to date, BILS is up 1.75% versus a gain of 25.33% for SCHD.

Over three years, BILS compounded at +4.45% per year against +15.40% for SCHD; over five years the annualized figures are +3.38% and +9.70% respectively. Across the full 6-year window we track, SCHD has the edge at +11.45% annualized vs +2.86%. 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 0.7% for BILS. 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 -0.4% for BILS 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 -0.03. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BILS charges 0.14% per year while SCHD charges 0.06%. On a $10,000 position that is $14 vs $6 annually, a gap of $8 per year that compounds over a long holding period. On income, BILS currently yields 3.80% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

BILS and SCHD share 0 holdings out of 102 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, BILS or SCHD?

BILS has an expense ratio of 0.14% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $8 per year of difference.

Which performed better, BILS or SCHD?

Over the past year BILS returned +3.44% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), BILS annualized +2.86% vs +11.45% for SCHD. Past performance does not guarantee future results.

Which is riskier, BILS or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 0.7% for BILS. Worst drawdown: BILS -0.4% vs SCHD -33.4%.

Should I hold both BILS and SCHD?

BILS and SCHD have a monthly-return correlation of -0.03, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BILS and SCHD?

BILS and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 102 unique securities.

Which pays a higher dividend, BILS or SCHD?

BILS yields 3.80% while SCHD yields 3.31%, so BILS currently pays the higher dividend yield.

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