IBHG vs SCHD
iShares iBonds 2027 Term High Yield and Income ETF vs Schwab US Dividend Equity ETF
Which is better, IBHG or SCHD?
High Yield Bond against Large Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. IBHG is less concentrated, with 23.4% of the fund in its ten largest positions against 41.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IBHG | SCHD |
|---|---|---|
| Expense Ratio | 0.35% | 0.06%Best |
| AUM | $525M | $112.1B |
| Dividend Yield | 6.00% | 3.00% |
| Holdings | 91 | 103 |
| YTD Return | -2.00% | +25.07%Best |
| 1Y Return | -1.15% | +27.61%Best |
| 3Y Return (annualized) | +5.51% | +15.74%Best |
| 5Y Return (annualized) | +2.66% | +9.89%Best |
| Volatility (annualized) | 6.7%Best | 14.8% |
| Max Drawdown | -13.8%Best | -16.9% |
| $10,000 over 5 years | $11,403 | $16,025Best |
| Top 10 Weight | 23.4%Best | 41.8% |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management |
| Category | Fixed Income | Equity |
| Style | High Yield Bond | Large Cap Value |
| Inception | Jul 7, 2021 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Jul 9, 2021 to Sep 11, 2026 (5.2 years).
IBHG vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5.2 years both funds cover.
IBHG vs SCHD Performance
iShares iBonds 2027 Term High Yield and Income ETF (IBHG) is an ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year IBHG returned -1.15% while SCHD returned +27.61%. Year to date, IBHG is down 2.00% versus a gain of 25.07% for SCHD.
Over three years, IBHG compounded at +5.51% per year against +15.74% for SCHD; over five years the annualized figures are +2.66% and +9.89% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 14.8% compared with 6.7% 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 -16.9% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.65. They move together some of the time, and apart the rest.
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 6.00% against 3.00% for SCHD.
Holdings Overlap
We hold position weights for 348 holdings in IBHG and 100 in SCHD, totalling 95.3% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 348 positions we hold weights for in IBHG and 100 in SCHD, against full books of 91 and 103.
What only one of them owns
Measured across the 348 and 100 positions we hold weights for.
SCHD holds 98 positions IBHG does not, 99.9% of the fund.
Largest: MRK 4.77%, AMGN 4.70%, ABT 4.69%, KO 4.17%, CVX 4.02%
You are not choosing between two funds in isolation.
Whichever of IBHG and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $29 a year on a $10,000 investment.
Which performed better, IBHG or SCHD?
Over the past year IBHG returned -1.15% vs +27.61% for SCHD, so SCHD leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IBHG or SCHD?
SCHD has been the more volatile fund at 14.8% annualized versus 6.7% for IBHG. Worst drawdown: IBHG -13.8% vs SCHD -16.9%.
Should I hold both IBHG and SCHD?
IBHG and SCHD have a monthly-return correlation of 0.65, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, IBHG or SCHD?
IBHG yields 6.00% while SCHD yields 3.00%, so IBHG currently pays the higher dividend yield.
Is SCHD better than IBHG?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. IBHG is less concentrated, with 23.4% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.