IBHH vs SCHD

IBHH vs SCHD

Which is better, IBHH or SCHD?

High Yield Bond against Large Cap Value.

SCHD has a lower expense ratio. SCHD led over 1Y, 3Y and the full window. IBHH is less concentrated, with 16.5% of the fund in its ten largest positions against 41.8%.

Lower Fees: SCHDHigher Returns: SCHDLess Concentrated: IBHH

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

MetricIBHHSCHD
Expense Ratio0.35%0.06%Best
AUM$452M$112.1B
Dividend Yield6.20%3.00%
Holdings216103
YTD Return-1.44%+24.23%Best
1Y Return-0.64%+27.90%Best
3Y Return (annualized)+6.55%+15.55%Best
5Y Return (annualized)-+9.97%
Volatility (annualized)7.5%Best15.1%
Max Drawdown-12.1%Best-16.1%
$10,000 over 4.5 years$11,904$15,679Best
Top 10 Weight16.5%Best41.8%
Fund FamilyiShares by BlackRock (US)Charles Schwab Asset Management
CategoryFixed IncomeEquity
StyleHigh Yield BondLarge Cap Value
InceptionMar 8, 2022Oct 20, 2011

Volatility and max drawdown, and the $10,000 over 4.5 years row, are measured over the window both funds cover: Mar 10, 2022 to Sep 17, 2026 (4.5 years).

IBHH 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 4.5 years both funds cover.

IBHH vs SCHD Performance

iShares iBonds 2028 Term High Yield and Income ETF (IBHH) 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 IBHH returned -0.64% while SCHD returned +27.90%. Year to date, IBHH is down 1.44% versus a gain of 24.23% for SCHD.

Over three years, IBHH compounded at +6.55% per year against +15.55% for SCHD.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 7.5% 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 -16.1% 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 0.68. They move together some of the time, and apart the rest.

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 6.20% against 3.00% for SCHD.

Holdings Overlap

We hold position weights for 194 holdings in IBHH and 100 in SCHD, totalling 96.8% 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 194 positions we hold weights for in IBHH and 100 in SCHD, against full books of 216 and 103.

What only one of them owns

Our book lists 99 positions for SCHD that do not appear in our book for IBHH (99.9% of the fund), and 193 for IBHH that do not appear in SCHD (96.2%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

You are not choosing between two funds in isolation.

Whichever of IBHH and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

IBHHSCHD

Free for up to 10 holdings. No account needed.

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, by $29 a year on a $10,000 investment.

Which performed better, IBHH or SCHD?

Over the past year IBHH returned -0.64% vs +27.90% 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, IBHH or SCHD?

SCHD has been the more volatile fund at 15.1% annualized versus 7.5% for IBHH. Worst drawdown: IBHH -12.1% vs SCHD -16.1%.

Should I hold both IBHH and SCHD?

IBHH and SCHD have a monthly-return correlation of 0.68, 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, IBHH or SCHD?

IBHH yields 6.20% while SCHD yields 3.00%, so IBHH currently pays the higher dividend yield.

Is SCHD better than IBHH?

SCHD has a lower expense ratio. SCHD led over 1Y, 3Y and the full window. IBHH is less concentrated, with 16.5% 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.