BTZ vs SCHD
BlackRock Credit Allocation Income Trust vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. BTZ offers more diversification with 1141 holdings.
Side-by-Side Comparison
| Metric | BTZ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.12% | 0.06% | |
| AUM | $1.0B | $103.7B | |
| Dividend Yield | 9.18% | 3.31% | |
| Holdings | 2,036 | 104 | |
| YTD Return | +1.34% | +26.21% | |
| 1Y Return | +2.43% | +29.99% | |
| 3Y Return (annualized) | +10.68% | +15.73% | |
| 5Y Return (annualized) | +0.92% | +9.67% | |
| Volatility (annualized) | 18.2% | 13.6% | |
| Max Drawdown | -80.2% | -33.4% | |
| Fund Family | BlackRock, Inc. (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Dec 27, 2006 | Oct 20, 2011 |
BTZ vs SCHD Performance
BlackRock Credit Allocation Income Trust (BTZ) 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 BTZ returned +2.43% while SCHD returned +29.99%. Year to date, BTZ is up 1.34% versus a gain of 26.21% for SCHD.
Over three years, BTZ compounded at +10.68% per year against +15.73% for SCHD; over five years the annualized figures are +0.92% and +9.67% respectively. Across the full 15-year window we track, SCHD has the edge at +11.50% annualized vs -1.98%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BTZ has been the more volatile fund, with annualized monthly volatility of 18.2% compared with 13.6% for SCHD. 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 -80.2% for BTZ 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BTZ charges 1.12% per year while SCHD charges 0.06%. On a $10,000 position that is $112 vs $6 annually, a gap of $106 per year that compounds over a long holding period. On income, BTZ currently yields 9.18% against 3.31% for SCHD.
Holdings Overlap
BTZ and SCHD share 0 holdings out of 1241 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, BTZ or SCHD?
BTZ has an expense ratio of 1.12% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $106 per year of difference.
Which performed better, BTZ or SCHD?
Over the past year BTZ returned +2.43% vs +29.99% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), BTZ annualized -1.98% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, BTZ or SCHD?
BTZ has been the more volatile fund at 18.2% annualized versus 13.6% for SCHD. Worst drawdown: BTZ -80.2% vs SCHD -33.4%.
Should I hold both BTZ and SCHD?
BTZ and SCHD have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BTZ and SCHD?
BTZ and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1241 unique securities.
Which pays a higher dividend, BTZ or SCHD?
BTZ yields 9.18% while SCHD yields 3.31%, so BTZ currently pays the higher dividend yield.
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