IG vs SCHD
Principal Investment Grade Corporate ETF vs Schwab US Dividend Equity ETF
Which is better, IG or SCHD?
Long Term Mid Quality against Large Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IG | SCHD |
|---|---|---|
| Expense Ratio | 0.19% | 0.06%Best |
| AUM | $203M | $112.2B |
| Dividend Yield | 5.17% | 3.13% |
| Holdings | 251 | 103 |
| YTD Return | -2.37% | +27.56%Best |
| 1Y Return | -1.00% | +30.29%Best |
| 3Y Return (annualized) | +4.56% | +16.37%Best |
| 5Y Return (annualized) | -0.93% | +10.23%Best |
| Volatility (annualized) | 8.0%Best | 16.2% |
| Max Drawdown | -23.8%Best | -33.4% |
| $10,000 over 5 years | $9,544 | $16,274Best |
| Fund Family | Principal Funds | Charles Schwab Asset Management |
| Category | Fixed Income | Equity |
| Style | Long Term Mid Quality | Large Cap Value |
| Inception | Apr 18, 2018 | Oct 20, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Apr 19, 2018 to Sep 4, 2026 (8.4 years).
IG vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 8.4 years both funds cover.
IG vs SCHD Performance
Principal Investment Grade Corporate ETF (IG) is an ETF from Principal Funds and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year IG returned -1.00% while SCHD returned +30.29%. Year to date, IG is down 2.37% versus a gain of 27.56% for SCHD.
Over three years, IG compounded at +4.56% per year against +16.37% for SCHD; over five years the annualized figures are -0.93% and +10.23% respectively. Across the full 8-year window we track, SCHD has the edge at +11.96% annualized vs +0.48%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 16.2% 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 what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.53. They move together some of the time, and apart the rest.
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 5.17% against 3.13% for SCHD.
Holdings Overlap
At least 0.1% of SCHD's money is in holdings IG also owns.
Stated as a floor: for IG, our book for it covers 55.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 125 positions we hold weights for in IG and 100 in SCHD, against full books of 251 and 103.
Top Shared Holdings
| Stock | Weight in IG | Weight in SCHD | Difference |
|---|---|---|---|
| GVMXXState Street Institutional US Government Money Market Fund | 2.63% | 0.05% | 2.58% |
You are not choosing between two funds in isolation.
Whichever of IG and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $13 a year on a $10,000 investment.
Which performed better, IG or SCHD?
Over the past year IG returned -1.00% vs +30.29% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (8 years), IG annualized +0.48% vs +11.96% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IG or SCHD?
SCHD has been the more volatile fund at 16.2% 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 their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, IG or SCHD?
IG yields 5.17% while SCHD yields 3.13%, so IG currently pays the higher dividend yield.
Is SCHD better than IG?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.