ILS vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricILSSCHDWinner
Expense Ratio1.58%0.06%
AUM$81M$103.7B
Dividend Yield8.23%3.31%
Holdings81104
YTD Return+3.70%+24.26%
1Y Return+7.82%+31.38%
3Y Return (annualized)-+15.08%
5Y Return (annualized)-+9.72%
Volatility (annualized)2.6%13.6%
Max Drawdown-1.6%-33.4%
Fund FamilyILS ETFsCharles Schwab Asset Management
CategoryFixed IncomeEquity
InceptionMar 14, 2025Oct 20, 2011

ILS vs SCHD Performance

Brookmont Catastrophic Bond ETF (ILS) is a ETF from ILS ETFs and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year ILS returned +7.82% while SCHD returned +31.38%. Year to date, ILS is up 3.70% versus a gain of 24.26% for SCHD.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 2.6% for ILS. 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 -1.6% for ILS 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 -0.15. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

ILS charges 1.58% per year while SCHD charges 0.06%. On a $10,000 position that is $158 vs $6 annually, a gap of $152 per year that compounds over a long holding period. On income, ILS currently yields 8.23% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

ILS and SCHD share 0 holdings out of 101 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, ILS or SCHD?

ILS has an expense ratio of 1.58% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $152 per year of difference.

Which performed better, ILS or SCHD?

Over the past year ILS returned +7.82% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (1 years), ILS annualized +7.00% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, ILS or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 2.6% for ILS. Worst drawdown: ILS -1.6% vs SCHD -33.4%.

Should I hold both ILS and SCHD?

ILS and SCHD have a monthly-return correlation of -0.15, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between ILS and SCHD?

ILS and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 101 unique securities.

Which pays a higher dividend, ILS or SCHD?

ILS yields 8.23% while SCHD yields 3.31%, so ILS currently pays the higher dividend yield.

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