OBIL vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricOBILSCHDWinner
Expense Ratio0.15%0.06%
AUM$307M$103.7B
Dividend Yield3.96%3.31%
Holdings2104
YTD Return+1.87%+26.21%
1Y Return+3.59%+29.99%
3Y Return (annualized)+4.51%+15.73%
5Y Return (annualized)-+9.67%
Volatility (annualized)0.7%13.6%
Max Drawdown-0.3%-33.4%
Fund FamilyUS Benchmark SeriesCharles Schwab Asset Management
CategoryFixed IncomeEquity
InceptionNov 14, 2022Oct 20, 2011

OBIL vs SCHD Performance

F/m US Treasury 12 Month Bill ETF (OBIL) is a ETF from US Benchmark Series and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year OBIL returned +3.59% while SCHD returned +29.99%. Year to date, OBIL is up 1.87% versus a gain of 26.21% for SCHD.

Over three years, OBIL compounded at +4.51% per year against +15.73% for SCHD. Across the full 4-year window we track, SCHD has the edge at +11.50% annualized vs +4.35%. 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 0.7% for OBIL. 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 -0.3% for OBIL 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 0.20. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

OBIL 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, OBIL currently yields 3.96% against 3.31% for SCHD.

Frequently Asked Questions

Which is cheaper, OBIL or SCHD?

OBIL has an expense ratio of 0.15% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $9 per year of difference.

Which performed better, OBIL or SCHD?

Over the past year OBIL returned +3.59% vs +29.99% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), OBIL annualized +4.35% vs +11.50% for SCHD. Past performance does not guarantee future results.

Which is riskier, OBIL or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 0.7% for OBIL. Worst drawdown: OBIL -0.3% vs SCHD -33.4%.

Should I hold both OBIL and SCHD?

OBIL and SCHD have a monthly-return correlation of 0.20, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, OBIL or SCHD?

OBIL yields 3.96% while SCHD yields 3.31%, so OBIL currently pays the higher dividend yield.

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