IGHG vs SCHD
ProShares Investment Grade-Interest Rate Hedged ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. IGHG offers more diversification with 186 holdings.
Side-by-Side Comparison
| Metric | IGHG | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.30% | 0.06% | |
| AUM | $328M | $103.7B | |
| Dividend Yield | 5.13% | 3.31% | |
| Holdings | 186 | 104 | |
| YTD Return | -0.93% | +25.58% | |
| 1Y Return | +0.84% | +31.06% | |
| 3Y Return (annualized) | +6.26% | +15.55% | |
| 5Y Return (annualized) | +4.67% | +9.61% | |
| Volatility (annualized) | 11.7% | 13.6% | |
| Max Drawdown | -43.7% | -33.4% | |
| Fund Family | ProShares | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Nov 5, 2013 | Oct 20, 2011 |
IGHG vs SCHD Performance
ProShares Investment Grade-Interest Rate Hedged ETF (IGHG) is a ETF from ProShares and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year IGHG returned +0.84% while SCHD returned +31.06%. Year to date, IGHG is down 0.93% versus a gain of 25.58% for SCHD.
Over three years, IGHG compounded at +6.26% per year against +15.55% for SCHD; over five years the annualized figures are +4.67% and +9.61% respectively. Across the full 13-year window we track, SCHD has the edge at +11.46% annualized vs +3.43%. 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 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 worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.
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 5.13% against 3.31% for SCHD.
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. On a $10,000 investment, that is $24 per year of difference.
Which performed better, IGHG or SCHD?
Over the past year IGHG returned +0.84% vs +31.06% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (13 years), IGHG annualized +3.43% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, IGHG or SCHD?
SCHD has been the more volatile fund at 13.6% 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 combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, IGHG or SCHD?
IGHG yields 5.13% while SCHD yields 3.31%, so IGHG currently pays the higher dividend yield.
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