IBDT vs SCHD
iShares iBonds Dec 2028 Term Corporate ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. IBDT offers more diversification with 730 holdings.
Side-by-Side Comparison
| Metric | IBDT | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.06% | |
| AUM | $4.1B | $103.7B | |
| Dividend Yield | 4.54% | 3.31% | |
| Holdings | 730 | 104 | |
| YTD Return | +1.16% | +26.21% | |
| 1Y Return | +3.12% | +29.99% | |
| 3Y Return (annualized) | +5.70% | +15.73% | |
| 5Y Return (annualized) | +1.06% | +9.67% | |
| Volatility (annualized) | 6.4% | 13.6% | |
| Max Drawdown | -17.8% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 18, 2018 | Oct 20, 2011 |
IBDT vs SCHD Performance
iShares iBonds Dec 2028 Term Corporate ETF (IBDT) 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 IBDT returned +3.12% while SCHD returned +29.99%. Year to date, IBDT is up 1.16% versus a gain of 26.21% for SCHD.
Over three years, IBDT compounded at +5.70% per year against +15.73% for SCHD; over five years the annualized figures are +1.06% and +9.67% respectively. Across the full 8-year window we track, SCHD has the edge at +11.50% annualized vs +2.76%. 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 6.4% for IBDT. 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 -17.8% for IBDT 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBDT 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, IBDT currently yields 4.54% against 3.31% for SCHD.
Holdings Overlap
IBDT and SCHD share 0 holdings out of 124 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, IBDT or SCHD?
IBDT 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, IBDT or SCHD?
Over the past year IBDT returned +3.12% vs +29.99% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (8 years), IBDT annualized +2.76% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, IBDT or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 6.4% for IBDT. Worst drawdown: IBDT -17.8% vs SCHD -33.4%.
Should I hold both IBDT and SCHD?
IBDT and SCHD have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBDT and SCHD?
IBDT and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 124 unique securities.
Which pays a higher dividend, IBDT or SCHD?
IBDT yields 4.54% while SCHD yields 3.31%, so IBDT currently pays the higher dividend yield.
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