IAGG vs SCHD
iShares Core International Aggregate Bond ETF vs Schwab US Dividend Equity ETF
Which is better, IAGG or SCHD?
Long Term Mid Quality against Large Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IAGG | SCHD |
|---|---|---|
| Expense Ratio | 0.07% | 0.06%Best |
| AUM | $11.9B | $112.1B |
| Dividend Yield | 4.54% | 3.00% |
| Holdings | 8,021 | 103 |
| YTD Return | -0.98% | +23.60%Best |
| 1Y Return | -3.32% | +28.29%Best |
| 3Y Return (annualized) | +3.08% | +16.25%Best |
| 5Y Return (annualized) | -0.07% | +10.25%Best |
| Volatility (annualized) | 4.1%Best | 14.8% |
| Max Drawdown | -13.9%Best | -33.4% |
| $10,000 over 5 years | $9,965 | $16,289Best |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management |
| Category | Fixed Income | Equity |
| Style | Long Term Mid Quality | Large Cap Value |
| Inception | Nov 10, 2015 | Oct 20, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 12, 2015 to Sep 21, 2026 (10.9 years).
IAGG vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 10.9 years both funds cover.
IAGG vs SCHD Performance
iShares Core International Aggregate Bond ETF (IAGG) is an ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year IAGG returned -3.32% while SCHD returned +28.29%. Year to date, IAGG is down 0.98% versus a gain of 23.60% for SCHD.
Over three years, IAGG compounded at +3.08% per year against +16.25% for SCHD; over five years the annualized figures are -0.07% and +10.25% respectively. Across the full 11-year window we track, SCHD has the edge at +11.31% annualized vs +1.93%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 14.8% compared with 4.1% for IAGG. 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 -13.9% for IAGG and -33.4% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.29. They move largely independently of each other.
Fees and Cost Over Time
IAGG charges 0.07% per year while SCHD charges 0.06%. On a $10,000 position that is $7 vs $6 annually, a gap of $1 per year that compounds over a long holding period. On income, IAGG currently yields 4.54% against 3.00% for SCHD.
Holdings Overlap
We hold position weights for 675 holdings in IAGG and 100 in SCHD, totalling 4.5% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 675 positions we hold weights for in IAGG and 100 in SCHD, against full books of 8,021 and 103.
You are not choosing between two funds in isolation.
Whichever of IAGG and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IAGG or SCHD?
IAGG has an expense ratio of 0.07% while SCHD charges 0.06%. SCHD is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, IAGG or SCHD?
Over the past year IAGG returned -3.32% vs +28.29% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (11 years), IAGG annualized +1.93% vs +11.31% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IAGG or SCHD?
SCHD has been the more volatile fund at 14.8% annualized versus 4.1% for IAGG. Worst drawdown: IAGG -13.9% vs SCHD -33.4%.
Should I hold both IAGG and SCHD?
IAGG and SCHD have a monthly-return correlation of 0.29, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, IAGG or SCHD?
IAGG yields 4.54% while SCHD yields 3.00%, so IAGG currently pays the higher dividend yield.
Is SCHD better than IAGG?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.