IBDY vs SCHD
iShares iBonds Dec 2033 Term Corporate ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. IBDY offers more diversification with 317 holdings.
Side-by-Side Comparison
| Metric | IBDY | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.06% | |
| AUM | $1.1B | $103.7B | |
| Dividend Yield | 4.87% | 3.31% | |
| Holdings | 381 | 104 | |
| YTD Return | -0.68% | +25.58% | |
| 1Y Return | +2.20% | +31.06% | |
| 3Y Return (annualized) | +5.88% | +15.55% | |
| 5Y Return (annualized) | - | +9.61% | |
| Volatility (annualized) | 6.7% | 13.6% | |
| Max Drawdown | -7.5% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Jun 21, 2023 | Oct 20, 2011 |
IBDY vs SCHD Performance
iShares iBonds Dec 2033 Term Corporate ETF (IBDY) 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 IBDY returned +2.20% while SCHD returned +31.06%. Year to date, IBDY is down 0.68% versus a gain of 25.58% for SCHD.
Over three years, IBDY compounded at +5.88% per year against +15.55% for SCHD. Across the full 3-year window we track, SCHD has the edge at +11.46% annualized vs +5.17%. 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 6.7% for IBDY. 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 -7.5% for IBDY 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBDY 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, IBDY currently yields 4.87% against 3.31% for SCHD.
Holdings Overlap
IBDY and SCHD share 0 holdings out of 417 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, IBDY or SCHD?
IBDY 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, IBDY or SCHD?
Over the past year IBDY returned +2.20% vs +31.06% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), IBDY annualized +5.17% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, IBDY or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 6.7% for IBDY. Worst drawdown: IBDY -7.5% vs SCHD -33.4%.
Should I hold both IBDY and SCHD?
IBDY and SCHD have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBDY and SCHD?
IBDY and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 417 unique securities.
Which pays a higher dividend, IBDY or SCHD?
IBDY yields 4.87% while SCHD yields 3.31%, so IBDY currently pays the higher dividend yield.
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