ICVT vs SCHD
iShares Convertible Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. ICVT offers more diversification with 107 holdings.
Side-by-Side Comparison
| Metric | ICVT | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.06% | |
| AUM | $7.2B | $103.7B | |
| Dividend Yield | 1.31% | 3.31% | |
| Holdings | 375 | 104 | |
| YTD Return | +15.68% | +24.26% | |
| 1Y Return | +26.29% | +31.38% | |
| 3Y Return (annualized) | +16.67% | +15.08% | |
| 5Y Return (annualized) | +5.87% | +9.72% | |
| Volatility (annualized) | 14.7% | 13.6% | |
| Max Drawdown | -33.3% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Convertible | Equity | |
| Inception | Jun 2, 2015 | Oct 20, 2011 |
ICVT vs SCHD Performance
iShares Convertible Bond ETF (ICVT) 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 ICVT returned +26.29% while SCHD returned +31.38%. Year to date, ICVT is up 15.68% versus a gain of 24.26% for SCHD.
Over three years, ICVT compounded at +16.67% per year against +15.08% for SCHD; over five years the annualized figures are +5.87% and +9.72% respectively. Across the full 11-year window we track, SCHD has the edge at +11.39% annualized vs +11.16%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ICVT has been the more volatile fund, with annualized monthly volatility of 14.7% compared with 13.6% for SCHD. 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 -33.3% for ICVT 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ICVT charges 0.20% per year while SCHD charges 0.06%. On a $10,000 position that is $20 vs $6 annually, a gap of $14 per year that compounds over a long holding period. On income, ICVT currently yields 1.31% against 3.31% for SCHD.
Holdings Overlap
ICVT and SCHD share 0 holdings out of 207 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, ICVT or SCHD?
ICVT has an expense ratio of 0.20% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, ICVT or SCHD?
Over the past year ICVT returned +26.29% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (11 years), ICVT annualized +11.16% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, ICVT or SCHD?
ICVT has been the more volatile fund at 14.7% annualized versus 13.6% for SCHD. Worst drawdown: ICVT -33.3% vs SCHD -33.4%.
Should I hold both ICVT and SCHD?
ICVT and SCHD have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ICVT and SCHD?
ICVT and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 207 unique securities.
Which pays a higher dividend, ICVT or SCHD?
ICVT yields 1.31% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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