IBHL vs SCHD
iShares iBonds 2032 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. IBHL offers more diversification with 176 holdings.
Side-by-Side Comparison
| Metric | IBHL | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.06% | |
| AUM | $25M | $103.7B | |
| Dividend Yield | 6.30% | 3.31% | |
| Holdings | 208 | 104 | |
| YTD Return | -1.68% | +25.62% | |
| 1Y Return | +1.36% | +32.62% | |
| 3Y Return (annualized) | - | +15.58% | |
| 5Y Return (annualized) | - | +9.63% | |
| Volatility (annualized) | 3.5% | 13.6% | |
| Max Drawdown | -3.7% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Mar 25, 2025 | Oct 20, 2011 |
IBHL vs SCHD Performance
iShares iBonds 2032 Term High Yield and Income ETF (IBHL) 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 IBHL returned +1.36% while SCHD returned +32.62%. Year to date, IBHL is down 1.68% versus a gain of 25.62% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 3.5% for IBHL. 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 -3.7% for IBHL 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 0.25. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBHL 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, IBHL currently yields 6.30% against 3.31% for SCHD.
Holdings Overlap
IBHL and SCHD share 0 holdings out of 276 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, IBHL or SCHD?
IBHL 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, IBHL or SCHD?
Over the past year IBHL returned +1.36% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (1 years), IBHL annualized +4.36% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, IBHL or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 3.5% for IBHL. Worst drawdown: IBHL -3.7% vs SCHD -33.4%.
Should I hold both IBHL and SCHD?
IBHL and SCHD have a monthly-return correlation of 0.25, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBHL and SCHD?
IBHL and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 276 unique securities.
Which pays a higher dividend, IBHL or SCHD?
IBHL yields 6.30% while SCHD yields 3.31%, so IBHL currently pays the higher dividend yield.
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