CGHY vs SCHD
Capital Group High Yield Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. CGHY offers more diversification with 144 holdings.
Side-by-Side Comparison
| Metric | CGHY | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.06% | |
| AUM | $121M | $103.7B | |
| Dividend Yield | 5.46% | 3.31% | |
| Holdings | 202 | 104 | |
| YTD Return | +2.46% | +25.58% | |
| 1Y Return | +5.55% | +31.06% | |
| 3Y Return (annualized) | - | +15.55% | |
| 5Y Return (annualized) | - | +9.61% | |
| Volatility (annualized) | 2.2% | 13.6% | |
| Max Drawdown | -2.4% | -33.4% | |
| Fund Family | Capital Group (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Jun 24, 2025 | Oct 20, 2011 |
CGHY vs SCHD Performance
Capital Group High Yield Bond ETF (CGHY) is a ETF from Capital Group (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year CGHY returned +5.55% while SCHD returned +31.06%. Year to date, CGHY is up 2.46% versus a gain of 25.58% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 2.2% for CGHY. 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 -2.4% for CGHY 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CGHY charges 0.39% per year while SCHD charges 0.06%. On a $10,000 position that is $39 vs $6 annually, a gap of $33 per year that compounds over a long holding period. On income, CGHY currently yields 5.46% against 3.31% for SCHD.
Holdings Overlap
CGHY and SCHD share 0 holdings out of 244 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, CGHY or SCHD?
CGHY has an expense ratio of 0.39% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $33 per year of difference.
Which performed better, CGHY or SCHD?
Over the past year CGHY returned +5.55% vs +31.06% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (1 years), CGHY annualized +5.57% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, CGHY or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 2.2% for CGHY. Worst drawdown: CGHY -2.4% vs SCHD -33.4%.
Should I hold both CGHY and SCHD?
CGHY and SCHD have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGHY and SCHD?
CGHY and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 244 unique securities.
Which pays a higher dividend, CGHY or SCHD?
CGHY yields 5.46% while SCHD yields 3.31%, so CGHY currently pays the higher dividend yield.
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