IBHJ vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. IBHJ offers more diversification with 253 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: IBHJ

Side-by-Side Comparison

MetricIBHJSCHDWinner
Expense Ratio0.35%0.06%
AUM$152M$103.7B
Dividend Yield6.66%3.31%
Holdings299104
YTD Return-1.07%+25.58%
1Y Return+1.63%+31.06%
3Y Return (annualized)+7.24%+15.55%
5Y Return (annualized)-+9.61%
Volatility (annualized)5.0%13.6%
Max Drawdown-4.9%-33.4%
Fund FamilyiShares by BlackRock (US)Charles Schwab Asset Management
CategoryFixed IncomeEquity
InceptionJun 21, 2023Oct 20, 2011

IBHJ vs SCHD Performance

iShares iBonds 2030 Term High Yield and Income ETF (IBHJ) 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 IBHJ returned +1.63% while SCHD returned +31.06%. Year to date, IBHJ is down 1.07% versus a gain of 25.58% for SCHD.

Over three years, IBHJ compounded at +7.24% per year against +15.55% for SCHD. Across the full 3-year window we track, SCHD has the edge at +11.46% annualized vs +7.44%. 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 5.0% for IBHJ. 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 -4.9% for IBHJ 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IBHJ 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, IBHJ currently yields 6.66% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

IBHJ and SCHD share 0 holdings out of 353 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, IBHJ or SCHD?

IBHJ 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, IBHJ or SCHD?

Over the past year IBHJ returned +1.63% vs +31.06% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), IBHJ annualized +7.44% vs +11.46% for SCHD. Past performance does not guarantee future results.

Which is riskier, IBHJ or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 5.0% for IBHJ. Worst drawdown: IBHJ -4.9% vs SCHD -33.4%.

Should I hold both IBHJ and SCHD?

IBHJ and SCHD have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IBHJ and SCHD?

IBHJ and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 353 unique securities.

Which pays a higher dividend, IBHJ or SCHD?

IBHJ yields 6.66% while SCHD yields 3.31%, so IBHJ currently pays the higher dividend yield.

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