BLW vs SCHD
BlackRock Limited Duration Income Trust vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. BLW offers more diversification with 2,073 holdings.
Side-by-Side Comparison
| Metric | BLW | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 4.48% | 0.06% | |
| AUM | $520M | $108.7B | |
| Dividend Yield | 10.33% | 3.13% | |
| Holdings | 2,073 | 104 | |
| YTD Return | +0.19% | +25.69% | |
| 1Y Return | +1.07% | +30.41% | |
| 3Y Return (annualized) | +9.47% | +16.03% | |
| 5Y Return (annualized) | +3.81% | +9.64% | |
| Volatility (annualized) | 12.1% | 13.6% | |
| Max Drawdown | -53.5% | -33.4% | |
| Fund Family | BlackRock, Inc. (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Jul 31, 2003 | Oct 20, 2011 |
BLW vs SCHD Performance
BlackRock Limited Duration Income Trust (BLW) 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 BLW returned +1.07% while SCHD returned +30.41%. Year to date, BLW is up 0.19% versus a gain of 25.69% for SCHD.
Over three years, BLW compounded at +9.47% per year against +16.03% for SCHD; over five years the annualized figures are +3.81% and +9.64% respectively. Across the full 15-year window we track, SCHD has the edge at +11.46% annualized vs +0.25%. 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 12.1% 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 -53.5% for BLW 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 0.70. 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
BLW and SCHD share 1 holdings out of 1096 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in BLW | Weight in SCHD | Difference |
|---|---|---|---|
| AFG | 0.00% | 0.25% | 0.25% |
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. On a $10,000 investment, that is $442 per year of difference.
Which performed better, BLW or SCHD?
Over the past year BLW returned +1.07% vs +30.41% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), BLW annualized +0.25% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, BLW or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 12.1% for BLW. Worst drawdown: BLW -53.5% vs SCHD -33.4%.
Should I hold both BLW and SCHD?
BLW and SCHD have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BLW and SCHD?
BLW and SCHD share 1 common holdings with a 0.0% weight overlap. Combined, they hold 1096 unique securities.
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.
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