IBDZ vs SCHD
iShares iBonds Dec 2034 Term Corporate ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. IBDZ offers more diversification with 357 holdings.
Side-by-Side Comparison
| Metric | IBDZ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.06% | |
| AUM | $867M | $103.7B | |
| Dividend Yield | 4.85% | 3.31% | |
| Holdings | 374 | 104 | |
| YTD Return | -0.77% | +25.62% | |
| 1Y Return | +2.33% | +32.62% | |
| 3Y Return (annualized) | - | +15.58% | |
| 5Y Return (annualized) | - | +9.63% | |
| Volatility (annualized) | 4.5% | 13.6% | |
| Max Drawdown | -5.6% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | May 22, 2024 | Oct 20, 2011 |
IBDZ vs SCHD Performance
iShares iBonds Dec 2034 Term Corporate ETF (IBDZ) 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 IBDZ returned +2.33% while SCHD returned +32.62%. Year to date, IBDZ is down 0.77% versus a gain of 25.62% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 4.5% for IBDZ. 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 -5.6% for IBDZ 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBDZ 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, IBDZ currently yields 4.85% against 3.31% for SCHD.
Holdings Overlap
IBDZ and SCHD share 0 holdings out of 457 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, IBDZ or SCHD?
IBDZ 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, IBDZ or SCHD?
Over the past year IBDZ returned +2.33% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), IBDZ annualized +5.47% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, IBDZ or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 4.5% for IBDZ. Worst drawdown: IBDZ -5.6% vs SCHD -33.4%.
Should I hold both IBDZ and SCHD?
IBDZ and SCHD have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBDZ and SCHD?
IBDZ and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 457 unique securities.
Which pays a higher dividend, IBDZ or SCHD?
IBDZ yields 4.85% while SCHD yields 3.31%, so IBDZ currently pays the higher dividend yield.
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