IGBH vs SCHQ
iShares Interest Rate Hedged Long-Term Corporate Bond ETF vs Schwab Long-Term US Treasury ETF
Quick Verdict
SCHQ has a lower expense ratio. IGBH delivered stronger 1-year returns. IGBH offers more diversification with 4,130 holdings.
Side-by-Side Comparison
| Metric | IGBH | SCHQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.14% | 0.03% | |
| AUM | $233M | $803M | |
| Dividend Yield | 5.62% | 4.91% | |
| Holdings | 4,130 | 100 | |
| YTD Return | +2.05% | -2.39% | |
| 1Y Return | +5.62% | +0.01% | |
| 3Y Return (annualized) | +7.69% | +1.26% | |
| 5Y Return (annualized) | +5.43% | -7.14% | |
| Volatility (annualized) | 7.5% | 13.5% | |
| Max Drawdown | -38.9% | -46.7% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Fixed Income | |
| Inception | Jul 22, 2015 | Oct 10, 2019 |
IGBH vs SCHQ Performance
iShares Interest Rate Hedged Long-Term Corporate Bond ETF (IGBH) is a ETF from iShares by BlackRock (US) and Schwab Long-Term US Treasury ETF (SCHQ) is a ETF from Charles Schwab Asset Management. Over the past year IGBH returned +5.62% while SCHQ returned +0.01%. Year to date, IGBH is up 2.05% versus a loss of 2.39% for SCHQ.
Over three years, IGBH compounded at +7.69% per year against +1.26% for SCHQ; over five years the annualized figures are +5.43% and -7.14% respectively. Across the full 7-year window we track, IGBH has the edge at +2.90% annualized vs -4.36%. 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 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 -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 0.02. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IGBH charges 0.14% per year while SCHQ charges 0.03%. On a $10,000 position that is $14 vs $3 annually, a gap of $11 per year that compounds over a long holding period. On income, IGBH currently yields 5.62% against 4.91% for SCHQ.
Holdings Overlap
IGBH and SCHQ share 0 holdings out of 168 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 SCHQ?
IGBH has an expense ratio of 0.14% while SCHQ charges 0.03%. SCHQ is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, IGBH or SCHQ?
Over the past year IGBH returned +5.62% vs +0.01% for SCHQ, so IGBH leads on 1-year performance. Over the longest common window we track (7 years), IGBH annualized +2.90% vs -4.36% for SCHQ. Past performance does not guarantee future results.
Which is riskier, IGBH or SCHQ?
SCHQ has been the more volatile fund at 13.5% annualized versus 7.5% for IGBH. Worst drawdown: IGBH -38.9% vs SCHQ -46.7%.
Should I hold both IGBH and SCHQ?
IGBH and SCHQ have a monthly-return correlation of 0.02, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IGBH and SCHQ?
IGBH and SCHQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 168 unique securities.
Which pays a higher dividend, IGBH or SCHQ?
IGBH yields 5.62% while SCHQ yields 4.91%, so IGBH currently pays the higher dividend yield.
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