IG vs SCHQ
Principal Investment Grade Corporate ETF vs Schwab Long-Term US Treasury ETF
Quick Verdict
SCHQ has a lower expense ratio. IG delivered stronger 1-year returns. IG offers more diversification with 145 holdings.
Side-by-Side Comparison
| Metric | IG | SCHQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.03% | |
| AUM | $198M | $806M | |
| Dividend Yield | 5.07% | 4.73% | |
| Holdings | 248 | 98 | |
| YTD Return | -1.95% | -3.33% | |
| 1Y Return | +0.44% | -1.50% | |
| 3Y Return (annualized) | +4.69% | -0.01% | |
| 5Y Return (annualized) | -0.73% | -6.86% | |
| Volatility (annualized) | 8.0% | 13.5% | |
| Max Drawdown | -23.8% | -46.7% | |
| Fund Family | Principal Funds | Charles Schwab Asset Management | |
| Category | Fixed Income | Fixed Income | |
| Inception | Apr 18, 2018 | Oct 10, 2019 |
IG vs SCHQ Performance
Principal Investment Grade Corporate ETF (IG) is a ETF from Principal Funds and Schwab Long-Term US Treasury ETF (SCHQ) is a ETF from Charles Schwab Asset Management. Over the past year IG returned +0.44% while SCHQ returned -1.50%. Year to date, IG is down 1.95% versus a loss of 3.33% for SCHQ.
Over three years, IG compounded at +4.69% per year against -0.01% for SCHQ; over five years the annualized figures are -0.73% and -6.86% respectively. Across the full 7-year window we track, IG has the edge at +0.54% annualized vs -4.51%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHQ has been the more volatile fund, with annualized monthly volatility of 13.5% 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 -46.7% for SCHQ. 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IG charges 0.19% per year while SCHQ charges 0.03%. On a $10,000 position that is $19 vs $3 annually, a gap of $16 per year that compounds over a long holding period. On income, IG currently yields 5.07% against 4.73% for SCHQ.
Frequently Asked Questions
Which is cheaper, IG or SCHQ?
IG has an expense ratio of 0.19% while SCHQ charges 0.03%. SCHQ is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, IG or SCHQ?
Over the past year IG returned +0.44% vs -1.50% for SCHQ, so IG leads on 1-year performance. Over the longest common window we track (7 years), IG annualized +0.54% vs -4.51% for SCHQ. Past performance does not guarantee future results.
Which is riskier, IG or SCHQ?
SCHQ has been the more volatile fund at 13.5% annualized versus 8.0% for IG. Worst drawdown: IG -23.8% vs SCHQ -46.7%.
Should I hold both IG and SCHQ?
IG and SCHQ have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, IG or SCHQ?
IG yields 5.07% while SCHQ yields 4.73%, so IG currently pays the higher dividend yield.
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