IBD vs SCHD

IBD vs SCHD

Which is better, IBD or SCHD?

SCHD has been ahead.

SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. IBD is less concentrated, with 23.5% of the fund in its ten largest positions against 41.8%.

Lower Fees: SCHDHigher Returns: SCHDLess Concentrated: IBD

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

MetricIBDSCHD
Expense Ratio0.41%0.06%Best
AUM$502M$112.1B
Dividend Yield4.32%3.00%
Holdings248103
YTD Return-0.98%+23.60%Best
1Y Return+0.58%+28.29%Best
3Y Return (annualized)+4.89%+16.25%Best
5Y Return (annualized)+0.89%+10.25%Best
Volatility (annualized)5.0%Best15.9%
Max Drawdown-16.3%Best-33.4%
$10,000 over 5 years$10,453$16,289Best
Top 10 Weight23.5%Best41.8%
Fund FamilyInspire ETFsCharles Schwab Asset Management
CategoryFixed IncomeEquity
Style-Large Cap Value
InceptionJul 10, 2017Oct 20, 2011

Volatility and max drawdown are measured over the window both funds cover: Jul 11, 2017 to Sep 21, 2026 (9.2 years).

IBD 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.

IBD vs SCHD Performance

Inspire Corporate Bond ETF (IBD) is an ETF from Inspire ETFs and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year IBD returned +0.58% while SCHD returned +28.29%. Year to date, IBD is down 0.98% versus a gain of 23.60% for SCHD.

Over three years, IBD compounded at +4.89% per year against +16.25% for SCHD; over five years the annualized figures are +0.89% and +10.25% respectively. Across the full 9-year window we track, SCHD has the edge at +11.53% annualized vs +1.05%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 15.9% 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 what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.51. They move together some of the time, and apart the rest.

Fees and Cost Over Time

IBD charges 0.41% per year while SCHD charges 0.06%. On a $10,000 position that is $41 vs $6 annually, a gap of $35 per year that compounds over a long holding period. On income, IBD currently yields 4.32% against 3.00% for SCHD.

Holdings Overlap

We hold position weights for 238 holdings in IBD and 100 in SCHD, totalling 97.7% 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 238 positions we hold weights for in IBD and 100 in SCHD, against full books of 248 and 103.

What only one of them owns

Measured across the 238 and 100 positions we hold weights for.

SCHD holds 98 positions IBD does not, 99.9% of the fund.

Largest: MRK 4.77%, AMGN 4.70%, ABT 4.69%, KO 4.17%, CVX 4.02%

You are not choosing between two funds in isolation.

Whichever of IBD and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

IBDSCHD

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, IBD or SCHD?

IBD has an expense ratio of 0.41% while SCHD charges 0.06%. SCHD is the cheaper option, by $35 a year on a $10,000 investment.

Which performed better, IBD or SCHD?

Over the past year IBD returned +0.58% vs +28.29% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), IBD annualized +1.05% vs +11.53% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, IBD or SCHD?

SCHD has been the more volatile fund at 15.9% 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 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, IBD or SCHD?

IBD yields 4.32% while SCHD yields 3.00%, so IBD currently pays the higher dividend yield.

Is SCHD better than IBD?

SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. IBD is less concentrated, with 23.5% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.