IBBQ vs SCHD

Quick Verdict

SCHD has a lower expense ratio. IBBQ delivered stronger 1-year returns. IBBQ offers more diversification with 261 holdings.

Lower Fees: SCHDHigher Returns: IBBQMore Diversified: IBBQ

Side-by-Side Comparison

MetricIBBQSCHDWinner
Expense Ratio0.19%0.06%
AUM$76M$103.7B
Dividend Yield0.79%3.31%
Holdings261104
YTD Return+19.81%+26.21%
1Y Return+47.56%+29.99%
3Y Return (annualized)+19.24%+15.73%
5Y Return (annualized)+6.01%+9.67%
Volatility (annualized)17.0%13.6%
Max Drawdown-37.9%-33.4%
Fund FamilyInvesco (US)Charles Schwab Asset Management
CategoryEquityEquity
InceptionJun 11, 2021Oct 20, 2011

IBBQ vs SCHD Performance

Invesco Nasdaq Biotechnology ETF (IBBQ) is a ETF from Invesco (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year IBBQ returned +47.56% while SCHD returned +29.99%. Year to date, IBBQ is up 19.81% versus a gain of 26.21% for SCHD.

Over three years, IBBQ compounded at +19.24% per year against +15.73% for SCHD; over five years the annualized figures are +6.01% and +9.67% respectively. Across the full 5-year window we track, SCHD has the edge at +11.50% annualized vs +6.55%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

IBBQ has been the more volatile fund, with annualized monthly volatility of 17.0% 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 -37.9% for IBBQ 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IBBQ charges 0.19% per year while SCHD charges 0.06%. On a $10,000 position that is $19 vs $6 annually, a gap of $13 per year that compounds over a long holding period. On income, IBBQ currently yields 0.79% against 3.31% for SCHD.

Holdings Overlap

4.3%overlap

IBBQ and SCHD share 1 holdings out of 351 unique holdings combined, representing a 4.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in IBBQWeight in SCHDDifference
AMGN7.85%4.25%3.60%

Frequently Asked Questions

Which is cheaper, IBBQ or SCHD?

IBBQ has an expense ratio of 0.19% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $13 per year of difference.

Which performed better, IBBQ or SCHD?

Over the past year IBBQ returned +47.56% vs +29.99% for SCHD, so IBBQ leads on 1-year performance. Over the longest common window we track (5 years), IBBQ annualized +6.55% vs +11.50% for SCHD. Past performance does not guarantee future results.

Which is riskier, IBBQ or SCHD?

IBBQ has been the more volatile fund at 17.0% annualized versus 13.6% for SCHD. Worst drawdown: IBBQ -37.9% vs SCHD -33.4%.

Should I hold both IBBQ and SCHD?

IBBQ and SCHD have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IBBQ and SCHD?

IBBQ and SCHD share 1 common holdings with a 4.3% weight overlap. Combined, they hold 351 unique securities.

Which pays a higher dividend, IBBQ or SCHD?

IBBQ yields 0.79% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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