SCHB vs SCHD
Schwab US Broad Market ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHB has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHB offers more diversification with 2,411 holdings.
Side-by-Side Comparison
| Metric | SCHB | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.06% | |
| AUM | $45.2B | $108.7B | |
| Dividend Yield | 1.04% | 3.13% | |
| Holdings | 2,411 | 104 | |
| YTD Return | +13.11% | +28.70% | |
| 1Y Return | +20.63% | +31.07% | |
| 3Y Return (annualized) | +21.44% | +16.88% | |
| 5Y Return (annualized) | +11.88% | +10.20% | |
| Volatility (annualized) | 14.9% | 13.7% | |
| Max Drawdown | -35.3% | -33.4% | |
| Fund Family | Charles Schwab Asset Management | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Nov 3, 2009 | Oct 20, 2011 |
SCHB vs SCHD Performance
Schwab US Broad Market ETF (SCHB) is a ETF from Charles Schwab Asset Management and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year SCHB returned +20.63% while SCHD returned +31.07%. Year to date, SCHB is up 13.11% versus a gain of 28.70% for SCHD.
Over three years, SCHB compounded at +21.44% per year against +16.88% for SCHD; over five years the annualized figures are +11.88% and +10.20% respectively. Across the full 15-year window we track, SCHB has the edge at +12.99% annualized vs +11.62%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHB has been the more volatile fund, with annualized monthly volatility of 14.9% compared with 13.7% 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 -35.3% for SCHB 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHB charges 0.03% per year while SCHD charges 0.06%. On a $10,000 position that is $3 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, SCHB currently yields 1.04% against 3.13% for SCHD.
Holdings Overlap
SCHB and SCHD share 98 holdings out of 2348 unique holdings combined, representing a 7.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHB or SCHD?
SCHB has an expense ratio of 0.03% while SCHD charges 0.06%. SCHB is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHB or SCHD?
Over the past year SCHB returned +20.63% vs +31.07% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHB annualized +12.99% vs +11.62% for SCHD. Past performance does not guarantee future results.
Which is riskier, SCHB or SCHD?
SCHB has been the more volatile fund at 14.9% annualized versus 13.7% for SCHD. Worst drawdown: SCHB -35.3% vs SCHD -33.4%.
Should I hold both SCHB and SCHD?
SCHB and SCHD have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHB and SCHD?
SCHB and SCHD share 98 common holdings with a 7.3% weight overlap. Combined, they hold 2348 unique securities.
Which pays a higher dividend, SCHB or SCHD?
SCHB yields 1.04% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.