IBTI vs SCHD
iShares iBonds Dec 2028 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 | IBTI | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.06% | |
| AUM | $1.9B | $103.7B | |
| Dividend Yield | 3.80% | 3.31% | |
| Holdings | 47 | 104 | |
| YTD Return | +0.55% | +25.58% | |
| 1Y Return | +2.48% | +31.06% | |
| 3Y Return (annualized) | +4.37% | +15.55% | |
| 5Y Return (annualized) | +0.03% | +9.61% | |
| Volatility (annualized) | 4.8% | 13.6% | |
| Max Drawdown | -18.7% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Feb 25, 2020 | Oct 20, 2011 |
IBTI vs SCHD Performance
iShares iBonds Dec 2028 Term Treasury ETF (IBTI) 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 IBTI returned +2.48% while SCHD returned +31.06%. Year to date, IBTI is up 0.55% versus a gain of 25.58% for SCHD.
Over three years, IBTI compounded at +4.37% per year against +15.55% for SCHD; over five years the annualized figures are +0.03% and +9.61% respectively. Across the full 7-year window we track, SCHD has the edge at +11.46% annualized vs +0.15%. 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 4.8% for IBTI. 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 -18.7% for IBTI 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 0.15. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBTI 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, IBTI currently yields 3.80% against 3.31% for SCHD.
Holdings Overlap
IBTI and SCHD share 0 holdings out of 131 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, IBTI or SCHD?
IBTI 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, IBTI or SCHD?
Over the past year IBTI returned +2.48% vs +31.06% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (7 years), IBTI annualized +0.15% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, IBTI or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 4.8% for IBTI. Worst drawdown: IBTI -18.7% vs SCHD -33.4%.
Should I hold both IBTI and SCHD?
IBTI and SCHD have a monthly-return correlation of 0.15, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBTI and SCHD?
IBTI and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 131 unique securities.
Which pays a higher dividend, IBTI or SCHD?
IBTI yields 3.80% while SCHD yields 3.31%, so IBTI currently pays the higher dividend yield.
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