INVG vs SCHD
GMO Systematic Investment Grade Credit ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. INVG offers more diversification with 115 holdings.
Side-by-Side Comparison
| Metric | INVG | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.06% | |
| AUM | $28M | $103.7B | |
| Dividend Yield | 5.47% | 3.31% | |
| Holdings | 132 | 104 | |
| YTD Return | -0.12% | +25.62% | |
| 1Y Return | +2.37% | +32.62% | |
| 3Y Return (annualized) | - | +15.58% | |
| 5Y Return (annualized) | - | +9.63% | |
| Volatility (annualized) | 3.4% | 13.6% | |
| Max Drawdown | -3.1% | -33.4% | |
| Fund Family | GMO | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Jun 3, 2025 | Oct 20, 2011 |
INVG vs SCHD Performance
GMO Systematic Investment Grade Credit ETF (INVG) is a ETF from GMO and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year INVG returned +2.37% while SCHD returned +32.62%. Year to date, INVG is down 0.12% versus a gain of 25.62% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 3.4% for INVG. 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 -3.1% for INVG 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 0.18. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
INVG charges 0.25% per year while SCHD charges 0.06%. On a $10,000 position that is $25 vs $6 annually, a gap of $19 per year that compounds over a long holding period. On income, INVG currently yields 5.47% against 3.31% for SCHD.
Holdings Overlap
INVG and SCHD share 0 holdings out of 215 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, INVG or SCHD?
INVG has an expense ratio of 0.25% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, INVG or SCHD?
Over the past year INVG returned +2.37% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (1 years), INVG annualized +3.82% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, INVG or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 3.4% for INVG. Worst drawdown: INVG -3.1% vs SCHD -33.4%.
Should I hold both INVG and SCHD?
INVG and SCHD have a monthly-return correlation of 0.18, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between INVG and SCHD?
INVG and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 215 unique securities.
Which pays a higher dividend, INVG or SCHD?
INVG yields 5.47% while SCHD yields 3.31%, so INVG currently pays the higher dividend yield.
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