IGHG vs SCHD

IGHG vs SCHD

Which is better, IGHG or SCHD?

Investment Grade Bond against Large Cap Value.

SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.

Lower Fees: SCHDHigher Returns: SCHD

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

MetricIGHGSCHD
Expense Ratio0.30%0.06%Best
AUM$343M$112.2B
Dividend Yield5.12%3.13%
Holdings186103
YTD Return-1.31%+27.56%Best
1Y Return-0.07%+30.29%Best
3Y Return (annualized)+5.87%+16.37%Best
5Y Return (annualized)+4.60%+10.23%Best
Volatility (annualized)11.7%Best14.3%
Max Drawdown-43.7%-33.4%Best
$10,000 over 5 years$12,522$16,274Best
Fund FamilyProSharesCharles Schwab Asset Management
CategoryFixed IncomeEquity
StyleInvestment Grade BondLarge Cap Value
InceptionNov 5, 2013Oct 20, 2011

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Nov 7, 2013 to Sep 4, 2026 (12.8 years).

IGHG 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 12.8 years both funds cover.

IGHG vs SCHD Performance

ProShares Investment Grade-Interest Rate Hedged ETF (IGHG) is an ETF from ProShares and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year IGHG returned -0.07% while SCHD returned +30.29%. Year to date, IGHG is down 1.31% versus a gain of 27.56% for SCHD.

Over three years, IGHG compounded at +5.87% per year against +16.37% for SCHD; over five years the annualized figures are +4.60% and +10.23% respectively. Across the full 13-year window we track, SCHD has the edge at +10.44% annualized vs +3.39%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 14.3% compared with 11.7% for IGHG. 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 -43.7% for IGHG 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 0.31. They move together some of the time, and apart the rest.

Fees and Cost Over Time

IGHG charges 0.30% per year while SCHD charges 0.06%. On a $10,000 position that is $30 vs $6 annually, a gap of $24 per year that compounds over a long holding period. On income, IGHG currently yields 5.12% against 3.13% for SCHD.

You are not choosing between two funds in isolation.

Whichever of IGHG and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

IGHGSCHD

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, IGHG or SCHD?

IGHG has an expense ratio of 0.30% while SCHD charges 0.06%. SCHD is the cheaper option, by $24 a year on a $10,000 investment.

Which performed better, IGHG or SCHD?

Over the past year IGHG returned -0.07% vs +30.29% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (13 years), IGHG annualized +3.39% vs +10.44% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, IGHG or SCHD?

SCHD has been the more volatile fund at 14.3% annualized versus 11.7% for IGHG. Worst drawdown: IGHG -43.7% vs SCHD -33.4%.

Should I hold both IGHG and SCHD?

IGHG and SCHD have a monthly-return correlation of 0.31, 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, IGHG or SCHD?

IGHG yields 5.12% while SCHD yields 3.13%, so IGHG currently pays the higher dividend yield.

Is SCHD better than IGHG?

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.