IBD vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. IBD offers more diversification with 247 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: IBD

Side-by-Side Comparison

MetricIBDSCHDWinner
Expense Ratio0.43%0.06%
AUM$485M$103.7B
Dividend Yield4.26%3.31%
Holdings251104
YTD Return-0.13%+24.26%
1Y Return+2.47%+31.38%
3Y Return (annualized)+4.83%+15.08%
5Y Return (annualized)+1.03%+9.72%
Volatility (annualized)5.0%13.6%
Max Drawdown-16.3%-33.4%
Fund FamilyInspire ETFsCharles Schwab Asset Management
CategoryFixed IncomeEquity
InceptionJul 10, 2017Oct 20, 2011

IBD vs SCHD Performance

Inspire Corporate Bond ETF (IBD) is a ETF from Inspire ETFs and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year IBD returned +2.47% while SCHD returned +31.38%. Year to date, IBD is down 0.13% versus a gain of 24.26% for SCHD.

Over three years, IBD compounded at +4.83% per year against +15.08% for SCHD; over five years the annualized figures are +1.03% and +9.72% respectively. Across the full 9-year window we track, SCHD has the edge at +11.39% annualized vs +1.16%. 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 5.0% for IBD. 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 -16.3% for IBD 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

IBD charges 0.43% per year while SCHD charges 0.06%. On a $10,000 position that is $43 vs $6 annually, a gap of $37 per year that compounds over a long holding period. On income, IBD currently yields 4.26% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

IBD and SCHD share 0 holdings out of 347 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, IBD or SCHD?

IBD has an expense ratio of 0.43% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $37 per year of difference.

Which performed better, IBD or SCHD?

Over the past year IBD returned +2.47% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), IBD annualized +1.16% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, IBD or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 5.0% for IBD. Worst drawdown: IBD -16.3% vs SCHD -33.4%.

Should I hold both IBD and SCHD?

IBD 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 IBD and SCHD?

IBD and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 347 unique securities.

Which pays a higher dividend, IBD or SCHD?

IBD yields 4.26% while SCHD yields 3.31%, so IBD currently pays the higher dividend yield.

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