IG vs SCHD
Principal Investment Grade Corporate ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. IG offers more diversification with 145 holdings.
Side-by-Side Comparison
| Metric | IG | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.06% | |
| AUM | $198M | $103.7B | |
| Dividend Yield | 5.07% | 3.31% | |
| Holdings | 248 | 104 | |
| YTD Return | -1.54% | +24.26% | |
| 1Y Return | +0.84% | +31.38% | |
| 3Y Return (annualized) | +4.56% | +15.08% | |
| 5Y Return (annualized) | -0.69% | +9.72% | |
| Volatility (annualized) | 8.0% | 13.6% | |
| Max Drawdown | -23.8% | -33.4% | |
| Fund Family | Principal Funds | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Apr 18, 2018 | Oct 20, 2011 |
IG vs SCHD Performance
Principal Investment Grade Corporate ETF (IG) is a ETF from Principal Funds and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year IG returned +0.84% while SCHD returned +31.38%. Year to date, IG is down 1.54% versus a gain of 24.26% for SCHD.
Over three years, IG compounded at +4.56% per year against +15.08% for SCHD; over five years the annualized figures are -0.69% and +9.72% respectively. Across the full 8-year window we track, SCHD has the edge at +11.39% annualized vs +0.59%. 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 8.0% for IG. 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 -23.8% for IG 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IG charges 0.19% per year while SCHD charges 0.06%. On a $10,000 position that is $19 vs $6 annually, a gap of $13 per year that compounds over a long holding period. On income, IG currently yields 5.07% against 3.31% for SCHD.
Holdings Overlap
IG and SCHD share 1 holdings out of 244 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IG | Weight in SCHD | Difference |
|---|---|---|---|
| GVMXX | 1.91% | 0.04% | 1.87% |
Frequently Asked Questions
Which is cheaper, IG or SCHD?
IG has an expense ratio of 0.19% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, IG or SCHD?
Over the past year IG returned +0.84% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (8 years), IG annualized +0.59% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, IG or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 8.0% for IG. Worst drawdown: IG -23.8% vs SCHD -33.4%.
Should I hold both IG and SCHD?
IG and SCHD have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IG and SCHD?
IG and SCHD share 1 common holdings with a 0.0% weight overlap. Combined, they hold 244 unique securities.
Which pays a higher dividend, IG or SCHD?
IG yields 5.07% while SCHD yields 3.31%, so IG currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.