IAGG vs SCHD
iShares Core International Aggregate Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. IAGG offers more diversification with 384 holdings.
Side-by-Side Comparison
| Metric | IAGG | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.06% | |
| AUM | $10.9B | $103.7B | |
| Dividend Yield | 3.63% | 3.31% | |
| Holdings | 8,021 | 104 | |
| YTD Return | -0.30% | +25.33% | |
| 1Y Return | -2.42% | +32.31% | |
| 3Y Return (annualized) | +3.17% | +15.40% | |
| 5Y Return (annualized) | -0.04% | +9.70% | |
| Volatility (annualized) | 4.1% | 13.6% | |
| Max Drawdown | -13.9% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Nov 10, 2015 | Oct 20, 2011 |
IAGG vs SCHD Performance
iShares Core International Aggregate Bond ETF (IAGG) 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 IAGG returned -2.42% while SCHD returned +32.31%. Year to date, IAGG is down 0.30% versus a gain of 25.33% for SCHD.
Over three years, IAGG compounded at +3.17% per year against +15.40% for SCHD; over five years the annualized figures are -0.04% and +9.70% respectively. Across the full 11-year window we track, SCHD has the edge at +11.45% annualized vs +2.01%. 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 4.1% 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 worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.29. They move independently enough that combining them can meaningfully diversify a portfolio.
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 3.63% against 3.31% for SCHD.
Holdings Overlap
IAGG and SCHD share 0 holdings out of 484 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, IAGG or SCHD?
IAGG has an expense ratio of 0.07% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, IAGG or SCHD?
Over the past year IAGG returned -2.42% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (11 years), IAGG annualized +2.01% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, IAGG or SCHD?
SCHD has been the more volatile fund at 13.6% 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IAGG and SCHD?
IAGG and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 484 unique securities.
Which pays a higher dividend, IAGG or SCHD?
IAGG yields 3.63% while SCHD yields 3.31%, so IAGG currently pays the higher dividend yield.
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