IBHH vs SCHD
iShares iBonds 2028 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. IBHH offers more diversification with 201 holdings.
Side-by-Side Comparison
| Metric | IBHH | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.06% | |
| AUM | $456M | $103.7B | |
| Dividend Yield | 6.26% | 3.31% | |
| Holdings | 222 | 104 | |
| YTD Return | -1.23% | +25.62% | |
| 1Y Return | +0.65% | +32.62% | |
| 3Y Return (annualized) | +6.80% | +15.58% | |
| 5Y Return (annualized) | - | +9.63% | |
| Volatility (annualized) | 7.6% | 13.6% | |
| Max Drawdown | -12.1% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Mar 8, 2022 | Oct 20, 2011 |
IBHH vs SCHD Performance
iShares iBonds 2028 Term High Yield and Income ETF (IBHH) 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 IBHH returned +0.65% while SCHD returned +32.62%. Year to date, IBHH is down 1.23% versus a gain of 25.62% for SCHD.
Over three years, IBHH compounded at +6.80% per year against +15.58% for SCHD. Across the full 4-year window we track, SCHD has the edge at +11.47% annualized vs +4.10%. 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 7.6% for IBHH. 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 -12.1% for IBHH 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBHH 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, IBHH currently yields 6.26% against 3.31% for SCHD.
Holdings Overlap
IBHH and SCHD share 0 holdings out of 301 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, IBHH or SCHD?
IBHH 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, IBHH or SCHD?
Over the past year IBHH returned +0.65% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), IBHH annualized +4.10% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, IBHH or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 7.6% for IBHH. Worst drawdown: IBHH -12.1% vs SCHD -33.4%.
Should I hold both IBHH and SCHD?
IBHH and SCHD have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBHH and SCHD?
IBHH and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 301 unique securities.
Which pays a higher dividend, IBHH or SCHD?
IBHH yields 6.26% while SCHD yields 3.31%, so IBHH currently pays the higher dividend yield.
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