IBTF vs SCHD
iShares iBonds Dec 2025 Term Treasury ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | IBTF | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.06% | |
| AUM | $1.4B | $103.7B | |
| Dividend Yield | 3.85% | 3.31% | |
| Holdings | 6 | 104 | |
| YTD Return | +3.86% | +24.26% | |
| 1Y Return | +4.10% | +31.38% | |
| 3Y Return (annualized) | +3.99% | +15.08% | |
| 5Y Return (annualized) | +0.69% | +9.72% | |
| Volatility (annualized) | 2.7% | 13.6% | |
| Max Drawdown | -20.8% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Feb 25, 2020 | Oct 20, 2011 |
IBTF vs SCHD Performance
iShares iBonds Dec 2025 Term Treasury ETF (IBTF) 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 IBTF returned +4.10% while SCHD returned +31.38%. Year to date, IBTF is up 3.86% versus a gain of 24.26% for SCHD.
Over three years, IBTF compounded at +3.99% per year against +15.08% for SCHD; over five years the annualized figures are +0.69% and +9.72% respectively. Across the full 6-year window we track, SCHD has the edge at +11.39% annualized vs +1.19%. 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 2.7% for IBTF. 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 -20.8% for IBTF 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 -0.01. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBTF charges 0.07% per year while SCHD charges 0.06%. On a $10,000 position that is $7 vs $6 annually, a gap of $1 per year that compounds over a long holding period. On income, IBTF currently yields 3.85% against 3.31% for SCHD.
Holdings Overlap
IBTF and SCHD share 0 holdings out of 104 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, IBTF or SCHD?
IBTF has an expense ratio of 0.07% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, IBTF or SCHD?
Over the past year IBTF returned +4.10% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), IBTF annualized +1.19% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, IBTF or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 2.7% for IBTF. Worst drawdown: IBTF -20.8% vs SCHD -33.4%.
Should I hold both IBTF and SCHD?
IBTF and SCHD have a monthly-return correlation of -0.01, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBTF and SCHD?
IBTF and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, IBTF or SCHD?
IBTF yields 3.85% while SCHD yields 3.31%, so IBTF currently pays the higher dividend yield.
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