IBDS vs SCHD
iShares iBonds Dec 2027 Term Corporate ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. IBDS offers more diversification with 601 holdings.
Side-by-Side Comparison
| Metric | IBDS | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.06% | |
| AUM | $3.8B | $103.7B | |
| Dividend Yield | 4.31% | 3.31% | |
| Holdings | 663 | 104 | |
| YTD Return | +1.59% | +25.58% | |
| 1Y Return | +3.66% | +31.06% | |
| 3Y Return (annualized) | +5.39% | +15.55% | |
| 5Y Return (annualized) | +1.36% | +9.61% | |
| Volatility (annualized) | 5.6% | 13.6% | |
| Max Drawdown | -16.8% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 12, 2017 | Oct 20, 2011 |
IBDS vs SCHD Performance
iShares iBonds Dec 2027 Term Corporate ETF (IBDS) 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 IBDS returned +3.66% while SCHD returned +31.06%. Year to date, IBDS is up 1.59% versus a gain of 25.58% for SCHD.
Over three years, IBDS compounded at +5.39% per year against +15.55% for SCHD; over five years the annualized figures are +1.36% and +9.61% respectively. Across the full 9-year window we track, SCHD has the edge at +11.46% annualized vs +1.85%. 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 5.6% for IBDS. 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 -16.8% for IBDS 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBDS 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, IBDS currently yields 4.31% against 3.31% for SCHD.
Holdings Overlap
IBDS and SCHD share 0 holdings out of 701 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, IBDS or SCHD?
IBDS 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, IBDS or SCHD?
Over the past year IBDS returned +3.66% vs +31.06% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), IBDS annualized +1.85% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, IBDS or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 5.6% for IBDS. Worst drawdown: IBDS -16.8% vs SCHD -33.4%.
Should I hold both IBDS and SCHD?
IBDS and SCHD have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBDS and SCHD?
IBDS and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 701 unique securities.
Which pays a higher dividend, IBDS or SCHD?
IBDS yields 4.31% while SCHD yields 3.31%, so IBDS currently pays the higher dividend yield.
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