IBB vs SCHD
iShares Biotechnology ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. IBB delivered stronger 1-year returns. IBB offers more diversification with 253 holdings.
Side-by-Side Comparison
| Metric | IBB | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.44% | 0.06% | |
| AUM | $9.4B | $103.7B | |
| Dividend Yield | 0.22% | 3.31% | |
| Holdings | 253 | 104 | |
| YTD Return | +17.82% | +26.21% | |
| 1Y Return | +45.39% | +29.99% | |
| 3Y Return (annualized) | +16.02% | +15.73% | |
| 5Y Return (annualized) | +3.53% | +9.67% | |
| Volatility (annualized) | 22.0% | 13.6% | |
| Max Drawdown | -62.9% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Feb 5, 2001 | Oct 20, 2011 |
IBB vs SCHD Performance
iShares Biotechnology ETF (IBB) 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 IBB returned +45.39% while SCHD returned +29.99%. Year to date, IBB is up 17.82% versus a gain of 26.21% for SCHD.
Over three years, IBB compounded at +16.02% per year against +15.73% for SCHD; over five years the annualized figures are +3.53% and +9.67% respectively. Across the full 15-year window we track, SCHD has the edge at +11.50% annualized vs +7.27%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IBB has been the more volatile fund, with annualized monthly volatility of 22.0% 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 -62.9% for IBB 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBB charges 0.44% per year while SCHD charges 0.06%. On a $10,000 position that is $44 vs $6 annually, a gap of $38 per year that compounds over a long holding period. On income, IBB currently yields 0.22% against 3.31% for SCHD.
Holdings Overlap
IBB and SCHD share 1 holdings out of 340 unique holdings combined, representing a 4.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IBB | Weight in SCHD | Difference |
|---|---|---|---|
| AMGN | 7.70% | 4.25% | 3.45% |
Frequently Asked Questions
Which is cheaper, IBB or SCHD?
IBB has an expense ratio of 0.44% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $38 per year of difference.
Which performed better, IBB or SCHD?
Over the past year IBB returned +45.39% vs +29.99% for SCHD, so IBB leads on 1-year performance. Over the longest common window we track (15 years), IBB annualized +7.27% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, IBB or SCHD?
IBB has been the more volatile fund at 22.0% annualized versus 13.6% for SCHD. Worst drawdown: IBB -62.9% vs SCHD -33.4%.
Should I hold both IBB and SCHD?
IBB and SCHD have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBB and SCHD?
IBB and SCHD share 1 common holdings with a 4.3% weight overlap. Combined, they hold 340 unique securities.
Which pays a higher dividend, IBB or SCHD?
IBB yields 0.22% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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