SCHD vs SCHO
Schwab US Dividend Equity ETF vs Schwab Short-Term US Treasury ETF
Quick Verdict
SCHO has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | SCHO | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $103.7B | $12.8B | |
| Dividend Yield | 3.31% | 3.90% | |
| Holdings | 104 | 98 | |
| YTD Return | +24.26% | +0.66% | |
| 1Y Return | +31.38% | +2.46% | |
| 3Y Return (annualized) | +15.08% | +3.99% | |
| 5Y Return (annualized) | +9.72% | +1.78% | |
| Volatility (annualized) | 13.6% | 1.4% | |
| Max Drawdown | -33.4% | -6.3% | |
| Fund Family | Charles Schwab Asset Management | Charles Schwab Asset Management | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Aug 5, 2010 |
SCHD vs SCHO Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Schwab Short-Term US Treasury ETF (SCHO) is a ETF from Charles Schwab Asset Management. Over the past year SCHD returned +31.38% while SCHO returned +2.46%. Year to date, SCHD is up 24.26% versus a gain of 0.66% for SCHO.
Over three years, SCHD compounded at +15.08% per year against +3.99% for SCHO; over five years the annualized figures are +9.72% and +1.78% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +0.72%. 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 1.4% for SCHO. 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 -33.4% for SCHD and -6.3% for SCHO. 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 0.05. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SCHO charges 0.03%. On a $10,000 position that is $6 vs $3 annually, a gap of $3 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 3.90% for SCHO.
Frequently Asked Questions
Which is cheaper, SCHD or SCHO?
SCHD has an expense ratio of 0.06% while SCHO charges 0.03%. SCHO is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHD or SCHO?
Over the past year SCHD returned +31.38% vs +2.46% for SCHO, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs +0.72% for SCHO. Past performance does not guarantee future results.
Which is riskier, SCHD or SCHO?
SCHD has been the more volatile fund at 13.6% annualized versus 1.4% for SCHO. Worst drawdown: SCHD -33.4% vs SCHO -6.3%.
Should I hold both SCHD and SCHO?
SCHD and SCHO have a monthly-return correlation of 0.05, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, SCHD or SCHO?
SCHD yields 3.31% while SCHO yields 3.90%, so SCHO currently pays the higher dividend yield.
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