JNK vs SCHD
State Street SPDR Bloomberg High Yield Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. JNK offers more diversification with 206 holdings.
Side-by-Side Comparison
| Metric | JNK | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.06% | |
| AUM | $6.9B | $103.7B | |
| Dividend Yield | 6.60% | 3.31% | |
| Holdings | 1,223 | 104 | |
| YTD Return | +1.71% | +25.62% | |
| 1Y Return | +5.07% | +32.62% | |
| 3Y Return (annualized) | +7.98% | +15.58% | |
| 5Y Return (annualized) | +3.50% | +9.63% | |
| Volatility (annualized) | 10.9% | 13.6% | |
| Max Drawdown | -46.2% | -33.4% | |
| Fund Family | State Street Investment Management | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Nov 28, 2007 | Oct 20, 2011 |
JNK vs SCHD Performance
State Street SPDR Bloomberg High Yield Bond ETF (JNK) is a ETF from State Street Investment Management and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year JNK returned +5.07% while SCHD returned +32.62%. Year to date, JNK is up 1.71% versus a gain of 25.62% for SCHD.
Over three years, JNK compounded at +7.98% per year against +15.58% for SCHD; over five years the annualized figures are +3.50% and +9.63% respectively. Across the full 15-year window we track, SCHD has the edge at +11.47% annualized vs -0.45%. 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 10.9% for JNK. 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 -46.2% for JNK 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
JNK charges 0.40% per year while SCHD charges 0.06%. On a $10,000 position that is $40 vs $6 annually, a gap of $34 per year that compounds over a long holding period. On income, JNK currently yields 6.60% against 3.31% for SCHD.
Holdings Overlap
JNK and SCHD share 1 holdings out of 305 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in JNK | Weight in SCHD | Difference |
|---|---|---|---|
| GVMXX | 0.01% | 0.04% | 0.03% |
Frequently Asked Questions
Which is cheaper, JNK or SCHD?
JNK has an expense ratio of 0.40% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $34 per year of difference.
Which performed better, JNK or SCHD?
Over the past year JNK returned +5.07% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), JNK annualized -0.45% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, JNK or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 10.9% for JNK. Worst drawdown: JNK -46.2% vs SCHD -33.4%.
Should I hold both JNK and SCHD?
JNK and SCHD have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between JNK and SCHD?
JNK and SCHD share 1 common holdings with a 0.0% weight overlap. Combined, they hold 305 unique securities.
Which pays a higher dividend, JNK or SCHD?
JNK yields 6.60% while SCHD yields 3.31%, so JNK currently pays the higher dividend yield.
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