SCHD vs SCHR

Quick Verdict

SCHR has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHR offers more diversification with 101 holdings.

Lower Fees: SCHRHigher Returns: SCHDMore Diversified: SCHR

Side-by-Side Comparison

MetricSCHDSCHRWinner
Expense Ratio0.06%0.03%
AUM$103.7B$13.3B
Dividend Yield3.31%3.90%
Holdings104101
YTD Return+25.62%-0.81%
1Y Return+32.62%+1.29%
3Y Return (annualized)+15.58%+3.90%
5Y Return (annualized)+9.63%-0.15%
Volatility (annualized)13.6%4.2%
Max Drawdown-33.4%-16.6%
Fund FamilyCharles Schwab Asset ManagementCharles Schwab Asset Management
CategoryEquityFixed Income
InceptionOct 20, 2011Aug 5, 2010

SCHD vs SCHR Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Schwab Intermediate-Term US Treasury ETF (SCHR) is a ETF from Charles Schwab Asset Management. Over the past year SCHD returned +32.62% while SCHR returned +1.29%. Year to date, SCHD is up 25.62% versus a loss of 0.81% for SCHR.

Over three years, SCHD compounded at +15.58% per year against +3.90% for SCHR; over five years the annualized figures are +9.63% and -0.15% respectively. Across the full 15-year window we track, SCHD has the edge at +11.47% annualized vs +0.82%. 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 4.2% for SCHR. 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 -16.6% for SCHR. 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 0.04. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while SCHR 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 SCHR.

Frequently Asked Questions

Which is cheaper, SCHD or SCHR?

SCHD has an expense ratio of 0.06% while SCHR charges 0.03%. SCHR is the cheaper option. On a $10,000 investment, that is $3 per year of difference.

Which performed better, SCHD or SCHR?

Over the past year SCHD returned +32.62% vs +1.29% for SCHR, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.47% vs +0.82% for SCHR. Past performance does not guarantee future results.

Which is riskier, SCHD or SCHR?

SCHD has been the more volatile fund at 13.6% annualized versus 4.2% for SCHR. Worst drawdown: SCHD -33.4% vs SCHR -16.6%.

Should I hold both SCHD and SCHR?

SCHD and SCHR have a monthly-return correlation of 0.04, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, SCHD or SCHR?

SCHD yields 3.31% while SCHR yields 3.90%, so SCHR currently pays the higher dividend yield.

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