IBDR vs SCHD
iShares iBonds Dec 2026 Term Corporate ETF vs Schwab US Dividend Equity ETF
Which is better, IBDR or SCHD?
SCHD has been ahead.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 45.1%.
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
| Metric | IBDR | SCHD |
|---|---|---|
| Expense Ratio | 0.10% | 0.06%Best |
| AUM | $3.3B | $112.1B |
| Dividend Yield | 4.08% | 3.00% |
| Holdings | 223 | 103 |
| YTD Return | +2.61% | +23.46%Best |
| 1Y Return | +3.93% | +27.20%Best |
| 3Y Return (annualized) | +5.43% | +15.41%Best |
| 5Y Return (annualized) | +1.63% | +10.16%Best |
| Volatility (annualized) | 4.6%Best | 15.3% |
| Max Drawdown | -16.1%Best | -33.4% |
| $10,000 over 5 years | $10,842 | $16,223Best |
| Top 10 Weight | 45.1% | 41.8%Best |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management |
| Category | Fixed Income | Equity |
| Style | - | Large Cap Value |
| Inception | Sep 13, 2016 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Sep 19, 2016 to Sep 18, 2026 (10 years).
IBDR 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.
IBDR vs SCHD Performance
iShares iBonds Dec 2026 Term Corporate ETF (IBDR) is an ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year IBDR returned +3.93% while SCHD returned +27.20%. Year to date, IBDR is up 2.61% versus a gain of 23.46% for SCHD.
Over three years, IBDR compounded at +5.43% per year against +15.41% for SCHD; over five years the annualized figures are +1.63% and +10.16% respectively. Across the full 10-year window we track, SCHD has the edge at +11.41% annualized vs +1.60%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 15.3% 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 what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.41. They move together some of the time, and apart the rest.
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 4.08% against 3.00% for SCHD.
Holdings Overlap
We hold position weights for 187 holdings in IBDR and 100 in SCHD, totalling 99.7% 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 187 positions we hold weights for in IBDR and 100 in SCHD, against full books of 223 and 103.
What only one of them owns
Our book lists 98 positions for SCHD that do not appear in our book for IBDR (95.2% of the fund), and 186 for IBDR that do not appear in SCHD (99.7%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of IBDR and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $4 a year on a $10,000 investment.
Which performed better, IBDR or SCHD?
Over the past year IBDR returned +3.93% vs +27.20% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (10 years), IBDR annualized +1.60% vs +11.41% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IBDR or SCHD?
SCHD has been the more volatile fund at 15.3% 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 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, IBDR or SCHD?
IBDR yields 4.08% while SCHD yields 3.00%, so IBDR currently pays the higher dividend yield.
Is SCHD better than IBDR?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 45.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.