IBDR vs SCHD
iShares iBonds Dec 2026 Term Corporate ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. IBDR offers more diversification with 223 holdings.
Side-by-Side Comparison
| Metric | IBDR | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.06% | |
| AUM | $3.4B | $103.7B | |
| Dividend Yield | 4.12% | 3.31% | |
| Holdings | 264 | 104 | |
| YTD Return | +1.82% | +25.33% | |
| 1Y Return | +3.74% | +32.31% | |
| 3Y Return (annualized) | +5.16% | +15.40% | |
| 5Y Return (annualized) | +1.57% | +9.70% | |
| Volatility (annualized) | 4.6% | 13.6% | |
| Max Drawdown | -16.1% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 13, 2016 | Oct 20, 2011 |
IBDR vs SCHD Performance
iShares iBonds Dec 2026 Term Corporate ETF (IBDR) 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 IBDR returned +3.74% while SCHD returned +32.31%. Year to date, IBDR is up 1.82% versus a gain of 25.33% for SCHD.
Over three years, IBDR compounded at +5.16% per year against +15.40% for SCHD; over five years the annualized figures are +1.57% and +9.70% respectively. Across the full 10-year window we track, SCHD has the edge at +11.45% annualized vs +1.54%. 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 4.6% for IBDR. 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 -16.1% for IBDR 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBDR charges 0.10% per year while SCHD charges 0.06%. On a $10,000 position that is $10 vs $6 annually, a gap of $4 per year that compounds over a long holding period. On income, IBDR currently yields 4.12% against 3.31% for SCHD.
Holdings Overlap
IBDR and SCHD share 0 holdings out of 323 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, IBDR or SCHD?
IBDR has an expense ratio of 0.10% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, IBDR or SCHD?
Over the past year IBDR returned +3.74% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (10 years), IBDR annualized +1.54% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, IBDR or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 4.6% for IBDR. Worst drawdown: IBDR -16.1% vs SCHD -33.4%.
Should I hold both IBDR and SCHD?
IBDR and SCHD have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBDR and SCHD?
IBDR and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 323 unique securities.
Which pays a higher dividend, IBDR or SCHD?
IBDR yields 4.12% while SCHD yields 3.31%, so IBDR currently pays the higher dividend yield.
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