MBB vs SCHD
iShares MBS ETF vs Schwab US Dividend Equity ETF
Which is better, MBB or SCHD?
SCHD has been ahead.
MBB 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 | MBB | SCHD |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.06% |
| AUM | $39.4B | $112.1B |
| Dividend Yield | 4.34% | 3.00% |
| Holdings | 11,186 | 103 |
| YTD Return | -1.36% | +24.04%Best |
| 1Y Return | -0.51% | +27.95%Best |
| 3Y Return (annualized) | +4.35% | +15.51%Best |
| 5Y Return (annualized) | -0.13% | +9.80%Best |
| Volatility (annualized) | 4.5%Best | 13.6% |
| Max Drawdown | -18.4%Best | -33.4% |
| $10,000 over 5 years | $9,935 | $15,959Best |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management |
| Category | Fixed Income | Equity |
| Style | - | Large Cap Value |
| Inception | Mar 13, 2007 | Oct 20, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 16, 2026 (14.9 years).
MBB 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
MBB vs SCHD Performance
iShares MBS ETF (MBB) 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 MBB returned -0.51% while SCHD returned +27.95%. Year to date, MBB is down 1.36% versus a gain of 24.04% for SCHD.
Over three years, MBB compounded at +4.35% per year against +15.51% for SCHD; over five years the annualized figures are -0.13% and +9.80% respectively. Across the full 15-year window we track, SCHD has the edge at +11.29% annualized vs +0.09%.
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 4.5% for MBB. 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 -18.4% for MBB and -33.4% 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 0.29. They move largely independently of each other.
Fees and Cost Over Time
MBB charges 0.04% per year while SCHD charges 0.06%. On a $10,000 position that is $4 vs $6 annually, a gap of $2 per year that compounds over a long holding period. On income, MBB currently yields 4.34% against 3.00% for SCHD.
Holdings Overlap
We hold position weights for 8,260 holdings in MBB and 100 in SCHD, totalling 90.9% 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 8,260 positions we hold weights for in MBB and 100 in SCHD, against full books of 11,186 and 103.
You are not choosing between two funds in isolation.
Whichever of MBB 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, MBB or SCHD?
MBB has an expense ratio of 0.04% while SCHD charges 0.06%. MBB is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, MBB or SCHD?
Over the past year MBB returned -0.51% vs +27.95% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), MBB annualized +0.09% vs +11.29% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MBB or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 4.5% for MBB. Worst drawdown: MBB -18.4% vs SCHD -33.4%.
Should I hold both MBB and SCHD?
MBB and SCHD have a monthly-return correlation of 0.29, 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, MBB or SCHD?
MBB yields 4.34% while SCHD yields 3.00%, so MBB currently pays the higher dividend yield.
Is SCHD better than MBB?
MBB 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.