Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricIBTFSCHDWinner
Expense Ratio0.07%0.06%
AUM$1.4B$103.7B
Dividend Yield3.85%3.31%
Holdings6104
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 FamilyiShares by BlackRock (US)Charles Schwab Asset Management
CategoryFixed IncomeEquity
InceptionFeb 25, 2020Oct 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

0.0%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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