PHB vs SCHD
PHB vs SCHD
Invesco Fundamental High Yield Corporate Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. PHB offers more diversification with 260 holdings.
Side-by-Side Comparison
| Metric | PHB | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.06% | |
| AUM | $387M | $103.7B | |
| Dividend Yield | 5.06% | 3.31% | |
| Holdings | 268 | 104 | |
| YTD Return | +0.43% | +24.26% | |
| 1Y Return | +7.15% | +31.38% | |
| 3Y Return (annualized) | +8.52% | +15.08% | |
| 5Y Return (annualized) | +3.74% | +9.72% | |
| Volatility (annualized) | 16.1% | 13.6% | |
| Max Drawdown | -71.2% | -33.4% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Nov 15, 2007 | Oct 20, 2011 |
PHB vs SCHD Performance
Invesco Fundamental High Yield Corporate Bond ETF (PHB) is a ETF from Invesco (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PHB returned +7.15% while SCHD returned +31.38%. Year to date, PHB is up 0.43% versus a gain of 24.26% for SCHD.
Over three years, PHB compounded at +8.52% per year against +15.08% for SCHD; over five years the annualized figures are +3.74% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs -1.63%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PHB has been the more volatile fund, with annualized monthly volatility of 16.1% compared with 13.6% for SCHD. 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 -71.2% for PHB 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PHB charges 0.50% per year while SCHD charges 0.06%. On a $10,000 position that is $50 vs $6 annually, a gap of $44 per year that compounds over a long holding period. On income, PHB currently yields 5.06% against 3.31% for SCHD.
Holdings Overlap
PHB and SCHD share 0 holdings out of 360 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, PHB or SCHD?
PHB has an expense ratio of 0.50% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $44 per year of difference.
Which performed better, PHB or SCHD?
Over the past year PHB returned +7.15% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), PHB annualized -1.63% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, PHB or SCHD?
PHB has been the more volatile fund at 16.1% annualized versus 13.6% for SCHD. Worst drawdown: PHB -71.2% vs SCHD -33.4%.
Should I hold both PHB and SCHD?
PHB and SCHD have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PHB and SCHD?
PHB and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 360 unique securities.
Which pays a higher dividend, PHB or SCHD?
PHB yields 5.06% while SCHD yields 3.31%, so PHB currently pays the higher dividend yield.
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