IHYF vs SCHD
Invesco High Yield Bond Factor ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. IHYF offers more diversification with 396 holdings.
Side-by-Side Comparison
| Metric | IHYF | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.06% | |
| AUM | $134M | $103.7B | |
| Dividend Yield | 6.50% | 3.31% | |
| Holdings | 432 | 104 | |
| YTD Return | +0.48% | +25.58% | |
| 1Y Return | +6.48% | +31.06% | |
| 3Y Return (annualized) | +9.19% | +15.55% | |
| 5Y Return (annualized) | +3.88% | +9.61% | |
| Volatility (annualized) | 6.9% | 13.6% | |
| Max Drawdown | -36.0% | -33.4% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Nov 30, 2020 | Oct 20, 2011 |
IHYF vs SCHD Performance
Invesco High Yield Bond Factor ETF (IHYF) is a ETF from Invesco (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year IHYF returned +6.48% while SCHD returned +31.06%. Year to date, IHYF is up 0.48% versus a gain of 25.58% for SCHD.
Over three years, IHYF compounded at +9.19% per year against +15.55% for SCHD; over five years the annualized figures are +3.88% and +9.61% respectively. Across the full 5-year window we track, SCHD has the edge at +11.46% annualized vs +4.16%. 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 6.9% for IHYF. 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 -36.0% for IHYF 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IHYF charges 0.39% per year while SCHD charges 0.06%. On a $10,000 position that is $39 vs $6 annually, a gap of $33 per year that compounds over a long holding period. On income, IHYF currently yields 6.50% against 3.31% for SCHD.
Holdings Overlap
IHYF and SCHD share 0 holdings out of 496 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, IHYF or SCHD?
IHYF has an expense ratio of 0.39% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $33 per year of difference.
Which performed better, IHYF or SCHD?
Over the past year IHYF returned +6.48% vs +31.06% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), IHYF annualized +4.16% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, IHYF or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 6.9% for IHYF. Worst drawdown: IHYF -36.0% vs SCHD -33.4%.
Should I hold both IHYF and SCHD?
IHYF and SCHD have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IHYF and SCHD?
IHYF and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 496 unique securities.
Which pays a higher dividend, IHYF or SCHD?
IHYF yields 6.50% while SCHD yields 3.31%, so IHYF currently pays the higher dividend yield.
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