IGBH vs SCHD
IGBH vs SCHD
iShares Interest Rate Hedged Long-Term Corporate Bond 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 | IGBH | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.14% | 0.06% | |
| AUM | $203M | $103.7B | |
| Dividend Yield | 5.68% | 3.31% | |
| Holdings | 4,130 | 104 | |
| YTD Return | +1.43% | +24.26% | |
| 1Y Return | +5.80% | +31.38% | |
| 3Y Return (annualized) | +7.55% | +15.08% | |
| 5Y Return (annualized) | +5.34% | +9.72% | |
| Volatility (annualized) | 7.5% | 13.6% | |
| Max Drawdown | -38.9% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Jul 22, 2015 | Oct 20, 2011 |
IGBH vs SCHD Performance
iShares Interest Rate Hedged Long-Term Corporate Bond ETF (IGBH) 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 IGBH returned +5.80% while SCHD returned +31.38%. Year to date, IGBH is up 1.43% versus a gain of 24.26% for SCHD.
Over three years, IGBH compounded at +7.55% per year against +15.08% for SCHD; over five years the annualized figures are +5.34% and +9.72% respectively. Across the full 11-year window we track, SCHD has the edge at +11.39% annualized vs +2.85%. 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 7.5% for IGBH. 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 -38.9% for IGBH 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IGBH charges 0.14% per year while SCHD charges 0.06%. On a $10,000 position that is $14 vs $6 annually, a gap of $8 per year that compounds over a long holding period. On income, IGBH currently yields 5.68% against 3.31% for SCHD.
Holdings Overlap
IGBH and SCHD share 0 holdings out of 176 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, IGBH or SCHD?
IGBH has an expense ratio of 0.14% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, IGBH or SCHD?
Over the past year IGBH returned +5.80% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (11 years), IGBH annualized +2.85% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, IGBH or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 7.5% for IGBH. Worst drawdown: IGBH -38.9% vs SCHD -33.4%.
Should I hold both IGBH and SCHD?
IGBH and SCHD have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IGBH and SCHD?
IGBH and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 176 unique securities.
Which pays a higher dividend, IGBH or SCHD?
IGBH yields 5.68% while SCHD yields 3.31%, so IGBH currently pays the higher dividend yield.
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