QLTA vs SCHD
iShares Aaa A Rated Corporate Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. QLTA offers more diversification with 1236 holdings.
Side-by-Side Comparison
| Metric | QLTA | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.06% | |
| AUM | $1.2B | $103.7B | |
| Dividend Yield | 4.46% | 3.31% | |
| Holdings | 3,482 | 104 | |
| YTD Return | -1.22% | +25.33% | |
| 1Y Return | +1.06% | +32.31% | |
| 3Y Return (annualized) | +4.36% | +15.40% | |
| 5Y Return (annualized) | -0.48% | +9.70% | |
| Volatility (annualized) | 5.8% | 13.6% | |
| Max Drawdown | -23.0% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Feb 14, 2012 | Oct 20, 2011 |
QLTA vs SCHD Performance
iShares Aaa A Rated Corporate Bond ETF (QLTA) is a ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year QLTA returned +1.06% while SCHD returned +32.31%. Year to date, QLTA is down 1.22% versus a gain of 25.33% for SCHD.
Over three years, QLTA compounded at +4.36% per year against +15.40% for SCHD; over five years the annualized figures are -0.48% and +9.70% respectively. Across the full 15-year window we track, SCHD has the edge at +11.45% annualized vs +0.76%. 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 5.8% for QLTA. 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 -23.0% for QLTA 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QLTA 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, QLTA currently yields 4.46% against 3.31% for SCHD.
Holdings Overlap
QLTA and SCHD share 0 holdings out of 1336 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, QLTA or SCHD?
QLTA 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, QLTA or SCHD?
Over the past year QLTA returned +1.06% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), QLTA annualized +0.76% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, QLTA or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 5.8% for QLTA. Worst drawdown: QLTA -23.0% vs SCHD -33.4%.
Should I hold both QLTA and SCHD?
QLTA and SCHD have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QLTA and SCHD?
QLTA and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1336 unique securities.
Which pays a higher dividend, QLTA or SCHD?
QLTA yields 4.46% while SCHD yields 3.31%, so QLTA currently pays the higher dividend yield.
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