IBDU vs SCHD
iShares iBonds Dec 2029 Term Corporate ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. IBDU offers more diversification with 565 holdings.
Side-by-Side Comparison
| Metric | IBDU | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.06% | |
| AUM | $4.0B | $103.7B | |
| Dividend Yield | 4.65% | 3.31% | |
| Holdings | 675 | 104 | |
| YTD Return | +0.59% | +25.33% | |
| 1Y Return | +2.95% | +32.31% | |
| 3Y Return (annualized) | +5.91% | +15.40% | |
| 5Y Return (annualized) | +0.99% | +9.70% | |
| Volatility (annualized) | 7.3% | 13.6% | |
| Max Drawdown | -19.5% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 17, 2019 | Oct 20, 2011 |
IBDU vs SCHD Performance
iShares iBonds Dec 2029 Term Corporate ETF (IBDU) 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 IBDU returned +2.95% while SCHD returned +32.31%. Year to date, IBDU is up 0.59% versus a gain of 25.33% for SCHD.
Over three years, IBDU compounded at +5.91% per year against +15.40% for SCHD; over five years the annualized figures are +0.99% and +9.70% respectively. Across the full 7-year window we track, SCHD has the edge at +11.45% 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 7.3% for IBDU. 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 -19.5% for IBDU 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBDU 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, IBDU currently yields 4.65% against 3.31% for SCHD.
Holdings Overlap
IBDU and SCHD share 0 holdings out of 665 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, IBDU or SCHD?
IBDU 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, IBDU or SCHD?
Over the past year IBDU returned +2.95% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (7 years), IBDU annualized +1.85% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, IBDU or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 7.3% for IBDU. Worst drawdown: IBDU -19.5% vs SCHD -33.4%.
Should I hold both IBDU and SCHD?
IBDU and SCHD have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBDU and SCHD?
IBDU and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 665 unique securities.
Which pays a higher dividend, IBDU or SCHD?
IBDU yields 4.65% while SCHD yields 3.31%, so IBDU currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.