LQDW vs SCHD
iShares Investment Grade Corporate Bond BuyWrite Strategy ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | LQDW | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.34% | 0.06% | |
| AUM | $308M | $103.7B | |
| Dividend Yield | 12.47% | 3.31% | |
| Holdings | 4 | 104 | |
| YTD Return | -4.80% | +26.21% | |
| 1Y Return | -3.27% | +29.99% | |
| 3Y Return (annualized) | +1.41% | +15.73% | |
| 5Y Return (annualized) | - | +9.67% | |
| Volatility (annualized) | 5.9% | 13.6% | |
| Max Drawdown | -9.2% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Aug 18, 2022 | Oct 20, 2011 |
LQDW vs SCHD Performance
iShares Investment Grade Corporate Bond BuyWrite Strategy ETF (LQDW) 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 LQDW returned -3.27% while SCHD returned +29.99%. Year to date, LQDW is down 4.80% versus a gain of 26.21% for SCHD.
Over three years, LQDW compounded at +1.41% per year against +15.73% for SCHD. Across the full 4-year window we track, SCHD has the edge at +11.50% annualized vs +0.55%. 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 5.9% for LQDW. 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 -9.2% for LQDW 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LQDW charges 0.34% per year while SCHD charges 0.06%. On a $10,000 position that is $34 vs $6 annually, a gap of $28 per year that compounds over a long holding period. On income, LQDW currently yields 12.47% against 3.31% for SCHD.
Holdings Overlap
LQDW and SCHD share 0 holdings out of 119 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, LQDW or SCHD?
LQDW has an expense ratio of 0.34% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $28 per year of difference.
Which performed better, LQDW or SCHD?
Over the past year LQDW returned -3.27% vs +29.99% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), LQDW annualized +0.55% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, LQDW or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 5.9% for LQDW. Worst drawdown: LQDW -9.2% vs SCHD -33.4%.
Should I hold both LQDW and SCHD?
LQDW and SCHD have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LQDW and SCHD?
LQDW and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 119 unique securities.
Which pays a higher dividend, LQDW or SCHD?
LQDW yields 12.47% while SCHD yields 3.31%, so LQDW currently pays the higher dividend yield.
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