IBTO vs SCHD
iShares iBonds Dec 2033 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 | IBTO | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.06% | |
| AUM | $476M | $103.7B | |
| Dividend Yield | 4.13% | 3.31% | |
| Holdings | 12 | 104 | |
| YTD Return | -0.74% | +26.21% | |
| 1Y Return | +1.16% | +29.99% | |
| 3Y Return (annualized) | +4.18% | +15.73% | |
| 5Y Return (annualized) | - | +9.67% | |
| Volatility (annualized) | 6.6% | 13.6% | |
| Max Drawdown | -8.4% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Jun 27, 2023 | Oct 20, 2011 |
IBTO vs SCHD Performance
iShares iBonds Dec 2033 Term Treasury ETF (IBTO) 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 IBTO returned +1.16% while SCHD returned +29.99%. Year to date, IBTO is down 0.74% versus a gain of 26.21% for SCHD.
Over three years, IBTO compounded at +4.18% per year against +15.73% for SCHD. Across the full 3-year window we track, SCHD has the edge at +11.50% annualized vs +3.25%. 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 6.6% for IBTO. 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 -8.4% for IBTO 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBTO 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, IBTO currently yields 4.13% against 3.31% for SCHD.
Holdings Overlap
IBTO and SCHD share 0 holdings out of 105 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, IBTO or SCHD?
IBTO 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, IBTO or SCHD?
Over the past year IBTO returned +1.16% vs +29.99% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), IBTO annualized +3.25% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, IBTO or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 6.6% for IBTO. Worst drawdown: IBTO -8.4% vs SCHD -33.4%.
Should I hold both IBTO and SCHD?
IBTO and SCHD have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBTO and SCHD?
IBTO and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.
Which pays a higher dividend, IBTO or SCHD?
IBTO yields 4.13% while SCHD yields 3.31%, so IBTO currently pays the higher dividend yield.
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