IBHG vs SCHD
iShares iBonds 2027 Term High Yield and Income ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | IBHG | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.06% | |
| AUM | $517M | $108.7B | |
| Dividend Yield | 6.05% | 3.13% | |
| Holdings | 91 | 104 | |
| YTD Return | -1.52% | +27.67% | |
| 1Y Return | -0.07% | +31.26% | |
| 3Y Return (annualized) | +6.03% | +16.66% | |
| 5Y Return (annualized) | +2.98% | +10.18% | |
| Volatility (annualized) | 6.8% | 13.6% | |
| Max Drawdown | -13.8% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Jul 7, 2021 | Oct 20, 2011 |
IBHG vs SCHD Performance
iShares iBonds 2027 Term High Yield and Income ETF (IBHG) 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 IBHG returned -0.07% while SCHD returned +31.26%. Year to date, IBHG is down 1.52% versus a gain of 27.67% for SCHD.
Over three years, IBHG compounded at +6.03% per year against +16.66% for SCHD; over five years the annualized figures are +2.98% and +10.18% respectively. Across the full 5-year window we track, SCHD has the edge at +11.57% annualized vs +2.80%. 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 6.8% for IBHG. 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 -13.8% for IBHG 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBHG charges 0.35% per year while SCHD charges 0.06%. On a $10,000 position that is $35 vs $6 annually, a gap of $29 per year that compounds over a long holding period. On income, IBHG currently yields 6.05% against 3.13% for SCHD.
Holdings Overlap
IBHG and SCHD share 0 holdings out of 185 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, IBHG or SCHD?
IBHG has an expense ratio of 0.35% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, IBHG or SCHD?
Over the past year IBHG returned -0.07% vs +31.26% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), IBHG annualized +2.80% vs +11.57% for SCHD. Past performance does not guarantee future results.
Which is riskier, IBHG or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 6.8% for IBHG. Worst drawdown: IBHG -13.8% vs SCHD -33.4%.
Should I hold both IBHG and SCHD?
IBHG and SCHD have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBHG and SCHD?
IBHG and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 185 unique securities.
Which pays a higher dividend, IBHG or SCHD?
IBHG yields 6.05% while SCHD yields 3.13%, so IBHG currently pays the higher dividend yield.
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