IGEB vs SCHD
iShares Investment Grade Systematic Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. IGEB offers more diversification with 475 holdings.
Side-by-Side Comparison
| Metric | IGEB | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.06% | |
| AUM | $1.5B | $108.7B | |
| Dividend Yield | 5.14% | 3.13% | |
| Holdings | 475 | 104 | |
| YTD Return | -3.04% | +26.54% | |
| 1Y Return | -1.15% | +30.90% | |
| 3Y Return (annualized) | +4.80% | +16.29% | |
| 5Y Return (annualized) | -0.20% | +9.65% | |
| Volatility (annualized) | 7.3% | 13.6% | |
| Max Drawdown | -21.1% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Jul 11, 2017 | Oct 20, 2011 |
IGEB vs SCHD Performance
iShares Investment Grade Systematic Bond ETF (IGEB) 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 IGEB returned -1.15% while SCHD returned +30.90%. Year to date, IGEB is down 3.04% versus a gain of 26.54% for SCHD.
Over three years, IGEB compounded at +4.80% per year against +16.29% for SCHD; over five years the annualized figures are -0.20% and +9.65% respectively. Across the full 9-year window we track, SCHD has the edge at +11.51% annualized vs +2.59%. 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 7.3% for IGEB. 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 -21.1% for IGEB 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IGEB charges 0.18% per year while SCHD charges 0.06%. On a $10,000 position that is $18 vs $6 annually, a gap of $12 per year that compounds over a long holding period. On income, IGEB currently yields 5.14% against 3.13% for SCHD.
Holdings Overlap
IGEB and SCHD share 0 holdings out of 474 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, IGEB or SCHD?
IGEB has an expense ratio of 0.18% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, IGEB or SCHD?
Over the past year IGEB returned -1.15% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), IGEB annualized +2.59% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, IGEB or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 7.3% for IGEB. Worst drawdown: IGEB -21.1% vs SCHD -33.4%.
Should I hold both IGEB and SCHD?
IGEB and SCHD have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IGEB and SCHD?
IGEB and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 474 unique securities.
Which pays a higher dividend, IGEB or SCHD?
IGEB yields 5.14% while SCHD yields 3.13%, so IGEB currently pays the higher dividend yield.
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