SCHD vs SCHQ
Schwab US Dividend Equity ETF vs Schwab Long-Term US Treasury ETF
Quick Verdict
SCHQ has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | SCHD | SCHQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $108.7B | $803M | |
| Dividend Yield | 3.13% | 4.91% | |
| Holdings | 104 | 100 | |
| YTD Return | +27.67% | -1.65% | |
| 1Y Return | +29.56% | +0.84% | |
| 3Y Return (annualized) | +16.53% | +0.61% | |
| 5Y Return (annualized) | +9.95% | -6.86% | |
| Volatility (annualized) | 13.6% | 13.5% | |
| Max Drawdown | -33.4% | -46.7% | |
| Fund Family | Charles Schwab Asset Management | Charles Schwab Asset Management | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Oct 10, 2019 |
SCHD vs SCHQ Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Schwab Long-Term US Treasury ETF (SCHQ) is a ETF from Charles Schwab Asset Management. Over the past year SCHD returned +29.56% while SCHQ returned +0.84%. Year to date, SCHD is up 27.67% versus a loss of 1.65% for SCHQ.
Over three years, SCHD compounded at +16.53% per year against +0.61% for SCHQ; over five years the annualized figures are +9.95% and -6.86% respectively. Across the full 7-year window we track, SCHD has the edge at +11.55% annualized vs -4.25%. 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 13.5% for SCHQ. 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 -46.7% for SCHQ. 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 0.17. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SCHQ 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 3.13% against 4.91% for SCHQ.
Holdings Overlap
SCHD and SCHQ share 0 holdings out of 192 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, SCHD or SCHQ?
SCHD has an expense ratio of 0.06% while SCHQ charges 0.03%. SCHQ is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHD or SCHQ?
Over the past year SCHD returned +29.56% vs +0.84% for SCHQ, so SCHD leads on 1-year performance. Over the longest common window we track (7 years), SCHD annualized +11.55% vs -4.25% for SCHQ. Past performance does not guarantee future results.
Which is riskier, SCHD or SCHQ?
SCHD has been the more volatile fund at 13.6% annualized versus 13.5% for SCHQ. Worst drawdown: SCHD -33.4% vs SCHQ -46.7%.
Should I hold both SCHD and SCHQ?
SCHD and SCHQ have a monthly-return correlation of 0.17, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SCHQ?
SCHD and SCHQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 192 unique securities.
Which pays a higher dividend, SCHD or SCHQ?
SCHD yields 3.13% while SCHQ yields 4.91%, so SCHQ currently pays the higher dividend yield.
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