LQDB vs SCHD
iShares BBB Rated Corporate Bond ETF vs Schwab US Dividend Equity ETF
Which is better, LQDB or SCHD?
SCHD has been ahead.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | LQDB | SCHD |
|---|---|---|
| Expense Ratio | 0.15% | 0.06%Best |
| AUM | $59M | $112.1B |
| Dividend Yield | 4.80% | 3.00% |
| Holdings | 1,713 | 103 |
| YTD Return | -2.33% | +21.00%Best |
| 1Y Return | -1.85% | +25.08%Best |
| 3Y Return (annualized) | +5.32% | +15.72%Best |
| 5Y Return (annualized) | -0.09% | +9.37%Best |
| Volatility (annualized) | 7.8%Best | 14.7% |
| Max Drawdown | -21.6% | -16.9%Best |
| $10,000 over 5 years | $9,955 | $15,649Best |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management |
| Category | Fixed Income | Equity |
| Style | - | Large Cap Value |
| Inception | May 18, 2021 | Oct 20, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: May 20, 2021 to Sep 28, 2026 (5.4 years).
LQDB vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5.4 years both funds cover.
LQDB vs SCHD Performance
iShares BBB Rated Corporate Bond ETF (LQDB) is an ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year LQDB returned -1.85% while SCHD returned +25.08%. Year to date, LQDB is down 2.33% versus a gain of 21.00% for SCHD.
Over three years, LQDB compounded at +5.32% per year against +15.72% for SCHD; over five years the annualized figures are -0.09% and +9.37% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 14.7% compared with 7.8% for LQDB. 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 -21.6% for LQDB and -16.9% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.60. They move together some of the time, and apart the rest.
Fees and Cost Over Time
LQDB charges 0.15% per year while SCHD charges 0.06%. On a $10,000 position that is $15 vs $6 annually, a gap of $9 per year that compounds over a long holding period. On income, LQDB currently yields 4.80% against 3.00% for SCHD.
Holdings Overlap
We hold position weights for 1,173 holdings in LQDB and 100 in SCHD, totalling 77.8% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 1,173 positions we hold weights for in LQDB and 100 in SCHD, against full books of 1,713 and 103.
You are not choosing between two funds in isolation.
Whichever of LQDB and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, LQDB or SCHD?
LQDB has an expense ratio of 0.15% while SCHD charges 0.06%. SCHD is the cheaper option, by $9 a year on a $10,000 investment.
Which performed better, LQDB or SCHD?
Over the past year LQDB returned -1.85% vs +25.08% for SCHD, so SCHD leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, LQDB or SCHD?
SCHD has been the more volatile fund at 14.7% annualized versus 7.8% for LQDB. Worst drawdown: LQDB -21.6% vs SCHD -16.9%.
Should I hold both LQDB and SCHD?
LQDB and SCHD have a monthly-return correlation of 0.60, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, LQDB or SCHD?
LQDB yields 4.80% while SCHD yields 3.00%, so LQDB currently pays the higher dividend yield.
Is SCHD better than LQDB?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.