IGIB vs SCHD
IGIB vs SCHD
iShares 5-10 Year Investment Grade Corporate Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
IGIB has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | IGIB | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.06% | |
| AUM | $18.6B | $103.7B | |
| Dividend Yield | 4.80% | 3.31% | |
| Holdings | 2,986 | 104 | |
| YTD Return | -0.37% | +24.26% | |
| 1Y Return | +2.44% | +31.38% | |
| 3Y Return (annualized) | +5.98% | +15.08% | |
| 5Y Return (annualized) | +1.00% | +9.72% | |
| Volatility (annualized) | 5.7% | 13.6% | |
| Max Drawdown | -20.6% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Jan 5, 2007 | Oct 20, 2011 |
IGIB vs SCHD Performance
iShares 5-10 Year Investment Grade Corporate Bond ETF (IGIB) 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 IGIB returned +2.44% while SCHD returned +31.38%. Year to date, IGIB is down 0.37% versus a gain of 24.26% for SCHD.
Over three years, IGIB compounded at +5.98% per year against +15.08% for SCHD; over five years the annualized figures are +1.00% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +1.28%. 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 5.7% for IGIB. 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 -20.6% for IGIB 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IGIB charges 0.04% per year while SCHD charges 0.06%. On a $10,000 position that is $4 vs $6 annually, a gap of $2 per year that compounds over a long holding period. On income, IGIB currently yields 4.80% against 3.31% for SCHD.
Holdings Overlap
IGIB and SCHD share 0 holdings out of 114 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, IGIB or SCHD?
IGIB has an expense ratio of 0.04% while SCHD charges 0.06%. IGIB is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, IGIB or SCHD?
Over the past year IGIB returned +2.44% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), IGIB annualized +1.28% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, IGIB or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 5.7% for IGIB. Worst drawdown: IGIB -20.6% vs SCHD -33.4%.
Should I hold both IGIB and SCHD?
IGIB and SCHD have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IGIB and SCHD?
IGIB and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 114 unique securities.
Which pays a higher dividend, IGIB or SCHD?
IGIB yields 4.80% while SCHD yields 3.31%, so IGIB currently pays the higher dividend yield.
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