IBTH vs SCHD
IBTH vs SCHD
iShares iBonds Dec 2027 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 | IBTH | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.06% | |
| AUM | $2.3B | $103.7B | |
| Dividend Yield | 3.82% | 3.31% | |
| Holdings | 53 | 104 | |
| YTD Return | +1.25% | +24.26% | |
| 1Y Return | +3.13% | +31.38% | |
| 3Y Return (annualized) | +4.16% | +15.08% | |
| 5Y Return (annualized) | +0.38% | +9.72% | |
| Volatility (annualized) | 4.2% | 13.6% | |
| Max Drawdown | -16.4% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Feb 25, 2020 | Oct 20, 2011 |
IBTH vs SCHD Performance
iShares iBonds Dec 2027 Term Treasury ETF (IBTH) 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 IBTH returned +3.13% while SCHD returned +31.38%. Year to date, IBTH is up 1.25% versus a gain of 24.26% for SCHD.
Over three years, IBTH compounded at +4.16% per year against +15.08% for SCHD; over five years the annualized figures are +0.38% and +9.72% respectively. Across the full 6-year window we track, SCHD has the edge at +11.39% annualized vs +0.57%. 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 4.2% for IBTH. 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 -16.4% for IBTH 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 0.10. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBTH 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, IBTH currently yields 3.82% against 3.31% for SCHD.
Holdings Overlap
IBTH and SCHD share 0 holdings out of 149 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, IBTH or SCHD?
IBTH 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, IBTH or SCHD?
Over the past year IBTH returned +3.13% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), IBTH annualized +0.57% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, IBTH or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 4.2% for IBTH. Worst drawdown: IBTH -16.4% vs SCHD -33.4%.
Should I hold both IBTH and SCHD?
IBTH and SCHD have a monthly-return correlation of 0.10, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBTH and SCHD?
IBTH and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 149 unique securities.
Which pays a higher dividend, IBTH or SCHD?
IBTH yields 3.82% while SCHD yields 3.31%, so IBTH currently pays the higher dividend yield.
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