SCHD vs SGOV
Schwab US Dividend Equity ETF vs iShares 0-3 Month Treasury Bond ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | SCHD | SGOV | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.09% | |
| AUM | $108.7B | $102.7B | |
| Dividend Yield | 3.13% | 3.79% | |
| Holdings | 104 | 23 | |
| YTD Return | +28.70% | +2.31% | |
| 1Y Return | +32.27% | +3.85% | |
| 3Y Return (annualized) | +17.27% | +4.62% | |
| 5Y Return (annualized) | +10.23% | +3.71% | |
| Volatility (annualized) | 13.7% | 0.7% | |
| Max Drawdown | -33.4% | -0.3% | |
| Fund Family | Charles Schwab Asset Management | iShares by BlackRock (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | May 26, 2020 |
SCHD vs SGOV Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and iShares 0-3 Month Treasury Bond ETF (SGOV) is a ETF from iShares by BlackRock (US). Over the past year SCHD returned +32.27% while SGOV returned +3.85%. Year to date, SCHD is up 28.70% versus a gain of 2.31% for SGOV.
Over three years, SCHD compounded at +17.27% per year against +4.62% for SGOV; over five years the annualized figures are +10.23% and +3.71% respectively. Across the full 6-year window we track, SCHD has the edge at +11.63% annualized vs +2.97%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 0.7% for SGOV. 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 -0.3% for SGOV. 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 -0.11. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SGOV charges 0.09%. On a $10,000 position that is $6 vs $9 annually, a gap of $3 per year that compounds over a long holding period. On income, SCHD currently yields 3.13% against 3.79% for SGOV.
Holdings Overlap
SCHD and SGOV share 0 holdings out of 102 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 SGOV?
SCHD has an expense ratio of 0.06% while SGOV charges 0.09%. SCHD is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHD or SGOV?
Over the past year SCHD returned +32.27% vs +3.85% for SGOV, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), SCHD annualized +11.63% vs +2.97% for SGOV. Past performance does not guarantee future results.
Which is riskier, SCHD or SGOV?
SCHD has been the more volatile fund at 13.7% annualized versus 0.7% for SGOV. Worst drawdown: SCHD -33.4% vs SGOV -0.3%.
Should I hold both SCHD and SGOV?
SCHD and SGOV have a monthly-return correlation of -0.11, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SGOV?
SCHD and SGOV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 102 unique securities.
Which pays a higher dividend, SCHD or SGOV?
SCHD yields 3.13% while SGOV yields 3.79%, so SGOV currently pays the higher dividend yield.
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