BNDW vs SCHD
Vanguard Total World Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
BNDW has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | BNDW | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.06% | |
| AUM | $1.9B | $103.7B | |
| Dividend Yield | 2.84% | 3.31% | |
| Holdings | 4 | 104 | |
| YTD Return | -0.16% | +25.33% | |
| 1Y Return | +1.43% | +32.31% | |
| 3Y Return (annualized) | +4.13% | +15.40% | |
| 5Y Return (annualized) | -0.18% | +9.70% | |
| Volatility (annualized) | 5.0% | 13.6% | |
| Max Drawdown | -17.7% | -33.4% | |
| Fund Family | Vanguard (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 4, 2018 | Oct 20, 2011 |
BNDW vs SCHD Performance
Vanguard Total World Bond ETF (BNDW) is a ETF from Vanguard (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year BNDW returned +1.43% while SCHD returned +32.31%. Year to date, BNDW is down 0.16% versus a gain of 25.33% for SCHD.
Over three years, BNDW compounded at +4.13% per year against +15.40% for SCHD; over five years the annualized figures are -0.18% and +9.70% respectively. Across the full 8-year window we track, SCHD has the edge at +11.45% annualized vs +0.87%. 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 5.0% for BNDW. 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 -17.7% for BNDW 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BNDW charges 0.05% per year while SCHD charges 0.06%. On a $10,000 position that is $5 vs $6 annually, a gap of $1 per year that compounds over a long holding period. On income, BNDW currently yields 2.84% against 3.31% for SCHD.
Holdings Overlap
BNDW and SCHD share 0 holdings out of 103 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, BNDW or SCHD?
BNDW has an expense ratio of 0.05% while SCHD charges 0.06%. BNDW is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, BNDW or SCHD?
Over the past year BNDW returned +1.43% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (8 years), BNDW annualized +0.87% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, BNDW or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 5.0% for BNDW. Worst drawdown: BNDW -17.7% vs SCHD -33.4%.
Should I hold both BNDW and SCHD?
BNDW and SCHD have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BNDW and SCHD?
BNDW and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, BNDW or SCHD?
BNDW yields 2.84% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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