GBF vs SCHD
iShares Government/Credit Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. GBF offers more diversification with 3004 holdings.
Side-by-Side Comparison
| Metric | GBF | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.06% | |
| AUM | $128M | $103.7B | |
| Dividend Yield | 3.77% | 3.31% | |
| Holdings | 3,311 | 104 | |
| YTD Return | -0.53% | +24.26% | |
| 1Y Return | +1.44% | +31.38% | |
| 3Y Return (annualized) | +3.58% | +15.08% | |
| 5Y Return (annualized) | -0.62% | +9.72% | |
| Volatility (annualized) | 4.8% | 13.6% | |
| Max Drawdown | -20.2% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Jan 5, 2007 | Oct 20, 2011 |
GBF vs SCHD Performance
iShares Government/Credit Bond ETF (GBF) is a ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year GBF returned +1.44% while SCHD returned +31.38%. Year to date, GBF is down 0.53% versus a gain of 24.26% for SCHD.
Over three years, GBF compounded at +3.58% per year against +15.08% for SCHD; over five years the annualized figures are -0.62% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +0.92%. 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 4.8% for GBF. 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 -20.2% for GBF 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 0.27. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GBF charges 0.20% per year while SCHD charges 0.06%. On a $10,000 position that is $20 vs $6 annually, a gap of $14 per year that compounds over a long holding period. On income, GBF currently yields 3.77% against 3.31% for SCHD.
Holdings Overlap
GBF and SCHD share 0 holdings out of 3104 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, GBF or SCHD?
GBF has an expense ratio of 0.20% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, GBF or SCHD?
Over the past year GBF returned +1.44% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), GBF annualized +0.92% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, GBF or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 4.8% for GBF. Worst drawdown: GBF -20.2% vs SCHD -33.4%.
Should I hold both GBF and SCHD?
GBF and SCHD have a monthly-return correlation of 0.27, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GBF and SCHD?
GBF and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3104 unique securities.
Which pays a higher dividend, GBF or SCHD?
GBF yields 3.77% while SCHD yields 3.31%, so GBF currently pays the higher dividend yield.
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