LQIG vs SCHD
State Street SPDR MarketAxess Investment Grade 400 Corporate Bond 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 100 holdings.
Side-by-Side Comparison
| Metric | LQIG | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.06% | |
| AUM | $28M | $103.7B | |
| Dividend Yield | 5.07% | 3.31% | |
| Holdings | 371 | 104 | |
| YTD Return | +0.13% | +26.21% | |
| 1Y Return | +6.27% | +29.99% | |
| 3Y Return (annualized) | +4.73% | +15.73% | |
| 5Y Return (annualized) | - | +9.67% | |
| Volatility (annualized) | 9.1% | 13.6% | |
| Max Drawdown | -11.9% | -33.4% | |
| Fund Family | State Street Investment Management | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | May 11, 2022 | Oct 20, 2011 |
LQIG vs SCHD Performance
State Street SPDR MarketAxess Investment Grade 400 Corporate Bond ETF (LQIG) 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 LQIG returned +6.27% while SCHD returned +29.99%. Year to date, LQIG is up 0.13% versus a gain of 26.21% for SCHD.
Over three years, LQIG compounded at +4.73% per year against +15.73% for SCHD. Across the full 4-year window we track, SCHD has the edge at +11.50% annualized vs +3.61%. 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 9.1% for LQIG. 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 -11.9% for LQIG 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LQIG charges 0.07% per year while SCHD charges 0.06%. On a $10,000 position that is $7 vs $6 annually, a gap of $1 per year that compounds over a long holding period. On income, LQIG currently yields 5.07% against 3.31% for SCHD.
Holdings Overlap
LQIG and SCHD share 1 holdings out of 181 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 LQIG | Weight in SCHD | Difference |
|---|---|---|---|
| GVMXX | 0.49% | 0.04% | 0.45% |
Frequently Asked Questions
Which is cheaper, LQIG or SCHD?
LQIG has an expense ratio of 0.07% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, LQIG or SCHD?
Over the past year LQIG returned +6.27% vs +29.99% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), LQIG annualized +3.61% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, LQIG or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 9.1% for LQIG. Worst drawdown: LQIG -11.9% vs SCHD -33.4%.
Should I hold both LQIG and SCHD?
LQIG and SCHD have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LQIG and SCHD?
LQIG and SCHD share 1 common holdings with a 0.0% weight overlap. Combined, they hold 181 unique securities.
Which pays a higher dividend, LQIG or SCHD?
LQIG yields 5.07% while SCHD yields 3.31%, so LQIG currently pays the higher dividend yield.
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