MBBB vs SCHD
MBBB vs SCHD
VanEck Moody's Analytics BBB Corporate Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. MBBB offers more diversification with 191 holdings.
Side-by-Side Comparison
| Metric | MBBB | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.06% | |
| AUM | $5M | $103.7B | |
| Dividend Yield | 5.06% | 3.31% | |
| Holdings | 214 | 104 | |
| YTD Return | -3.00% | +24.26% | |
| 1Y Return | -1.35% | +31.38% | |
| 3Y Return (annualized) | +4.56% | +15.08% | |
| 5Y Return (annualized) | -0.01% | +9.72% | |
| Volatility (annualized) | 7.4% | 13.6% | |
| Max Drawdown | -21.7% | -33.4% | |
| Fund Family | VanEck | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Dec 1, 2020 | Oct 20, 2011 |
MBBB vs SCHD Performance
VanEck Moody's Analytics BBB Corporate Bond ETF (MBBB) is a ETF from VanEck and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MBBB returned -1.35% while SCHD returned +31.38%. Year to date, MBBB is down 3.00% versus a gain of 24.26% for SCHD.
Over three years, MBBB compounded at +4.56% per year against +15.08% for SCHD; over five years the annualized figures are -0.01% and +9.72% respectively. Across the full 6-year window we track, SCHD has the edge at +11.39% annualized vs +0.40%. 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 7.4% for MBBB. 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 -21.7% for MBBB 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MBBB charges 0.25% per year while SCHD charges 0.06%. On a $10,000 position that is $25 vs $6 annually, a gap of $19 per year that compounds over a long holding period. On income, MBBB currently yields 5.06% against 3.31% for SCHD.
Holdings Overlap
MBBB and SCHD share 1 holdings out of 290 unique holdings combined, representing a 0.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in MBBB | Weight in SCHD | Difference |
|---|---|---|---|
| MO | 0.90% | 3.15% | 2.25% |
Frequently Asked Questions
Which is cheaper, MBBB or SCHD?
MBBB has an expense ratio of 0.25% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, MBBB or SCHD?
Over the past year MBBB returned -1.35% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), MBBB annualized +0.40% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, MBBB or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 7.4% for MBBB. Worst drawdown: MBBB -21.7% vs SCHD -33.4%.
Should I hold both MBBB and SCHD?
MBBB and SCHD have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MBBB and SCHD?
MBBB and SCHD share 1 common holdings with a 0.9% weight overlap. Combined, they hold 290 unique securities.
Which pays a higher dividend, MBBB or SCHD?
MBBB yields 5.06% while SCHD yields 3.31%, so MBBB currently pays the higher dividend yield.
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