GBTC vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricGBTCSCHDWinner
Expense Ratio1.50%0.06%
AUM$8.7B$103.7B
Dividend Yield0.00%3.31%
Holdings1104
YTD Return-29.95%+25.62%
1Y Return-47.51%+32.62%
3Y Return (annualized)+34.76%+15.58%
5Y Return (annualized)+4.80%+9.63%
Volatility (annualized)117.5%13.6%
Max Drawdown-89.9%-33.4%
Fund FamilyGrayscaleCharles Schwab Asset Management
CategoryAlternativeEquity
InceptionSep 25, 2013Oct 20, 2011

GBTC vs SCHD Performance

Grayscale Bitcoin Trust ETF (GBTC) is a ETF from Grayscale and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year GBTC returned -47.51% while SCHD returned +32.62%. Year to date, GBTC is down 29.95% versus a gain of 25.62% for SCHD.

Over three years, GBTC compounded at +34.76% per year against +15.58% for SCHD; over five years the annualized figures are +4.80% and +9.63% respectively. Across the full 11-year window we track, GBTC has the edge at +53.06% annualized vs +11.47%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

GBTC has been the more volatile fund, with annualized monthly volatility of 117.5% 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 -89.9% for GBTC 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 0.18. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

GBTC charges 1.50% per year while SCHD charges 0.06%. On a $10,000 position that is $150 vs $6 annually, a gap of $144 per year that compounds over a long holding period. On income, GBTC currently yields 0.00% against 3.31% for SCHD.

Frequently Asked Questions

Which is cheaper, GBTC or SCHD?

GBTC has an expense ratio of 1.50% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $144 per year of difference.

Which performed better, GBTC or SCHD?

Over the past year GBTC returned -47.51% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (11 years), GBTC annualized +53.06% vs +11.47% for SCHD. Past performance does not guarantee future results.

Which is riskier, GBTC or SCHD?

GBTC has been the more volatile fund at 117.5% annualized versus 13.6% for SCHD. Worst drawdown: GBTC -89.9% vs SCHD -33.4%.

Should I hold both GBTC and SCHD?

GBTC and SCHD have a monthly-return correlation of 0.18, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, GBTC or SCHD?

GBTC yields 0.00% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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