ISTB vs SCHD
iShares Core 1-5 Year USD Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD delivered stronger 1-year returns. ISTB offers more diversification with 2218 holdings.
Side-by-Side Comparison
| Metric | ISTB | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.06% | |
| AUM | $5.1B | $103.7B | |
| Dividend Yield | 4.24% | 3.31% | |
| Holdings | 7,038 | 104 | |
| YTD Return | +0.49% | +25.62% | |
| 1Y Return | +2.65% | +32.62% | |
| 3Y Return (annualized) | +5.14% | +15.58% | |
| 5Y Return (annualized) | +1.94% | +9.63% | |
| Volatility (annualized) | 2.2% | 13.6% | |
| Max Drawdown | -50.1% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Oct 18, 2012 | Oct 20, 2011 |
ISTB vs SCHD Performance
iShares Core 1-5 Year USD Bond ETF (ISTB) 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 ISTB returned +2.65% while SCHD returned +32.62%. Year to date, ISTB is up 0.49% versus a gain of 25.62% for SCHD.
Over three years, ISTB compounded at +5.14% per year against +15.58% for SCHD; over five years the annualized figures are +1.94% and +9.63% respectively. Across the full 14-year window we track, SCHD has the edge at +11.47% annualized vs +0.93%. 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 2.2% for ISTB. 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 -50.1% for ISTB 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ISTB charges 0.06% per year while SCHD charges 0.06%. On a $10,000 position that is $6 vs $6 annually. On income, ISTB currently yields 4.24% against 3.31% for SCHD.
Holdings Overlap
ISTB and SCHD share 0 holdings out of 2318 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, ISTB or SCHD?
ISTB has an expense ratio of 0.06% while SCHD charges 0.06%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, ISTB or SCHD?
Over the past year ISTB returned +2.65% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (14 years), ISTB annualized +0.93% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, ISTB or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 2.2% for ISTB. Worst drawdown: ISTB -50.1% vs SCHD -33.4%.
Should I hold both ISTB and SCHD?
ISTB and SCHD have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ISTB and SCHD?
ISTB and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2318 unique securities.
Which pays a higher dividend, ISTB or SCHD?
ISTB yields 4.24% while SCHD yields 3.31%, so ISTB currently pays the higher dividend yield.
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