BWZ vs SCHD
State Street SPDR Bloomberg Short Term International Treasury Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | BWZ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.06% | |
| AUM | $264M | $103.7B | |
| Dividend Yield | 2.11% | 3.31% | |
| Holdings | 291 | 104 | |
| YTD Return | +0.19% | +25.58% | |
| 1Y Return | -0.09% | +31.06% | |
| 3Y Return (annualized) | +2.79% | +15.55% | |
| 5Y Return (annualized) | -1.36% | +9.61% | |
| Volatility (annualized) | 7.4% | 13.6% | |
| Max Drawdown | -37.9% | -33.4% | |
| Fund Family | SPDR State Street Global Advisors | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Jan 15, 2009 | Oct 20, 2011 |
BWZ vs SCHD Performance
State Street SPDR Bloomberg Short Term International Treasury Bond ETF (BWZ) is a ETF from SPDR State Street Global Advisors and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year BWZ returned -0.09% while SCHD returned +31.06%. Year to date, BWZ is up 0.19% versus a gain of 25.58% for SCHD.
Over three years, BWZ compounded at +2.79% per year against +15.55% for SCHD; over five years the annualized figures are -1.36% and +9.61% respectively. Across the full 15-year window we track, SCHD has the edge at +11.46% annualized vs -0.67%. 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 7.4% for BWZ. 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 -37.9% for BWZ 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
BWZ charges 0.35% per year while SCHD charges 0.06%. On a $10,000 position that is $35 vs $6 annually, a gap of $29 per year that compounds over a long holding period. On income, BWZ currently yields 2.11% against 3.31% for SCHD.
Holdings Overlap
BWZ and SCHD share 0 holdings out of 105 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, BWZ or SCHD?
BWZ has an expense ratio of 0.35% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, BWZ or SCHD?
Over the past year BWZ returned -0.09% vs +31.06% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), BWZ annualized -0.67% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, BWZ or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 7.4% for BWZ. Worst drawdown: BWZ -37.9% vs SCHD -33.4%.
Should I hold both BWZ and SCHD?
BWZ 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 BWZ and SCHD?
BWZ and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.
Which pays a higher dividend, BWZ or SCHD?
BWZ yields 2.11% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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