BKLN vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. BKLN offers more diversification with 120 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: BKLN

Side-by-Side Comparison

MetricBKLNSCHDWinner
Expense Ratio0.65%0.06%
AUM$6.8B$103.7B
Dividend Yield6.59%3.31%
Holdings168104
YTD Return+1.15%+25.33%
1Y Return+4.40%+32.31%
3Y Return (annualized)+6.93%+15.40%
5Y Return (annualized)+5.45%+9.70%
Volatility (annualized)4.8%13.6%
Max Drawdown-32.2%-33.4%
Fund FamilyInvesco (US)Charles Schwab Asset Management
CategoryFixed IncomeEquity
InceptionMar 3, 2011Oct 20, 2011

BKLN vs SCHD Performance

Invesco Senior Loan ETF (BKLN) is a ETF from Invesco (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year BKLN returned +4.40% while SCHD returned +32.31%. Year to date, BKLN is up 1.15% versus a gain of 25.33% for SCHD.

Over three years, BKLN compounded at +6.93% per year against +15.40% for SCHD; over five years the annualized figures are +5.45% and +9.70% respectively. Across the full 15-year window we track, SCHD has the edge at +11.45% annualized vs +0.97%. 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 4.8% for BKLN. 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 -32.2% for BKLN 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BKLN charges 0.65% per year while SCHD charges 0.06%. On a $10,000 position that is $65 vs $6 annually, a gap of $59 per year that compounds over a long holding period. On income, BKLN currently yields 6.59% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

BKLN and SCHD share 0 holdings out of 220 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, BKLN or SCHD?

BKLN has an expense ratio of 0.65% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $59 per year of difference.

Which performed better, BKLN or SCHD?

Over the past year BKLN returned +4.40% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), BKLN annualized +0.97% vs +11.45% for SCHD. Past performance does not guarantee future results.

Which is riskier, BKLN or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 4.8% for BKLN. Worst drawdown: BKLN -32.2% vs SCHD -33.4%.

Should I hold both BKLN and SCHD?

BKLN and SCHD have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BKLN and SCHD?

BKLN and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 220 unique securities.

Which pays a higher dividend, BKLN or SCHD?

BKLN yields 6.59% while SCHD yields 3.31%, so BKLN currently pays the higher dividend yield.

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