BLW vs SCHD
BlackRock Limited Duration Income Trust vs Schwab US Dividend Equity ETF
Which is better, BLW or SCHD?
Short Term High Yield Bond against Large Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. BLW is less concentrated, with 8.3% of the fund in its ten largest positions against 41.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | BLW | SCHD |
|---|---|---|
| Expense Ratio | 4.48% | 0.06%Best |
| AUM | $515M | $112.2B |
| Dividend Yield | 10.33% | 3.13% |
| Holdings | 2,073 | 103 |
| YTD Return | -1.84% | +27.56%Best |
| 1Y Return | -1.96% | +30.29%Best |
| 3Y Return (annualized) | +8.40% | +16.37%Best |
| 5Y Return (annualized) | +2.93% | +10.23%Best |
| Volatility (annualized) | 11.3%Best | 13.6% |
| Max Drawdown | -50.1% | -33.4%Best |
| $10,000 over 5 years | $11,553 | $16,274Best |
| Top 10 Weight | 8.3%Best | 41.5% |
| Fund Family | BlackRock, Inc. (US) | Charles Schwab Asset Management |
| Category | Fixed Income | Equity |
| Style | Short Term High Yield Bond | Large Cap Value |
| Inception | Jul 31, 2003 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 4, 2026 (14.9 years).
BLW vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 14.9 years both funds cover.
BLW vs SCHD Performance
BlackRock Limited Duration Income Trust (BLW) is an ETF from BlackRock, Inc. (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year BLW returned -1.96% while SCHD returned +30.29%. Year to date, BLW is down 1.84% versus a gain of 27.56% for SCHD.
Over three years, BLW compounded at +8.40% per year against +16.37% for SCHD; over five years the annualized figures are +2.93% and +10.23% respectively. Across the full 15-year window we track, SCHD has the edge at +11.53% annualized vs +1.94%.
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 11.3% for BLW. 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 -50.1% for BLW and -33.4% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BLW charges 4.48% per year while SCHD charges 0.06%. On a $10,000 position that is $448 vs $6 annually, a gap of $442 per year that compounds over a long holding period. On income, BLW currently yields 10.33% against 3.13% for SCHD.
Holdings Overlap
0.3% of SCHD's money is in holdings BLW also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
The two holdings books were reported 219 days apart, BLW as of Dec 31, 2025 and SCHD as of Aug 7, 2026, so some of the difference between them is the time between the two reports rather than the funds.
1 positions in common, counted across the 997 positions we hold weights for in BLW and 100 in SCHD, against full books of 2,073 and 103.
What only one of them owns
Our book lists 97 positions for SCHD that do not appear in our book for BLW (99.4% of the fund), and 968 for BLW that do not appear in SCHD (102.8%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in BLW | Weight in SCHD | Difference |
|---|---|---|---|
| AFGAmerican Financial Group Inc/Oh | 0.00% | 0.25% | 0.25% |
You are not choosing between two funds in isolation.
Whichever of BLW and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, BLW or SCHD?
BLW has an expense ratio of 4.48% while SCHD charges 0.06%. SCHD is the cheaper option, by $442 a year on a $10,000 investment.
Which performed better, BLW or SCHD?
Over the past year BLW returned -1.96% vs +30.29% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), BLW annualized +1.94% vs +11.53% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BLW or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 11.3% for BLW. Worst drawdown: BLW -50.1% vs SCHD -33.4%.
Should I hold both BLW and SCHD?
BLW and SCHD have a monthly-return correlation of 0.70, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, BLW or SCHD?
BLW yields 10.33% while SCHD yields 3.13%, so BLW currently pays the higher dividend yield.
Is SCHD better than BLW?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. BLW is less concentrated, with 8.3% of the fund in its ten largest positions against 41.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.