SCHD vs SHAG

SCHD vs SHAG

Which is better, SCHD or SHAG?

Large Cap Value against Short Term Bond.

SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.

Lower Fees: SCHDHigher Returns: SCHD

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricSCHDSHAG
Expense Ratio0.06%Best0.12%
AUM$112.1B$47M
Dividend Yield3.00%4.23%
Holdings1031,210
YTD Return+25.88%Best-2.77%
1Y Return+30.22%Best-2.07%
3Y Return (annualized)+16.05%Best+3.42%
5Y Return (annualized)+10.17%Best+0.81%
Volatility (annualized)15.7%2.6%Best
Max Drawdown-33.4%-9.6%Best
$10,000 over 5 years$16,230Best$10,412
Fund FamilyCharles Schwab Asset ManagementWisdomTree Investments
CategoryEquityFixed Income
StyleLarge Cap ValueShort Term Bond
InceptionOct 20, 2011May 18, 2017

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: May 18, 2017 to Sep 14, 2026 (9.3 years).

SCHD vs SHAG growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.

SCHD vs SHAG Performance

Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and Wisdomtree Yield Enhanced US Short-Term Aggregate Bond Fund (SHAG) is an ETF from WisdomTree Investments. Over the past year SCHD returned +30.22% while SHAG returned -2.07%. Year to date, SCHD is up 25.88% versus a loss of 2.77% for SHAG.

Over three years, SCHD compounded at +16.05% per year against +3.42% for SHAG; over five years the annualized figures are +10.17% and +0.81% respectively. Across the full 9-year window we track, SCHD has the edge at +11.75% annualized vs +1.70%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 15.7% compared with 2.6% for SHAG. 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 -9.6% for SHAG. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.35. They move together some of the time, and apart the rest.

Fees and Cost Over Time

SCHD charges 0.06% per year while SHAG charges 0.12%. On a $10,000 position that is $6 vs $12 annually, a gap of $6 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 4.23% for SHAG.

You are not choosing between two funds in isolation.

Whichever of SCHD and SHAG you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

SCHDSHAG

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, SCHD or SHAG?

SCHD has an expense ratio of 0.06% while SHAG charges 0.12%. SCHD is the cheaper option, by $6 a year on a $10,000 investment.

Which performed better, SCHD or SHAG?

Over the past year SCHD returned +30.22% vs -2.07% for SHAG, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), SCHD annualized +11.75% vs +1.70% for SHAG. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, SCHD or SHAG?

SCHD has been the more volatile fund at 15.7% annualized versus 2.6% for SHAG. Worst drawdown: SCHD -33.4% vs SHAG -9.6%.

Should I hold both SCHD and SHAG?

SCHD and SHAG have a monthly-return correlation of 0.35, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, SCHD or SHAG?

SCHD yields 3.00% while SHAG yields 4.23%, so SHAG currently pays the higher dividend yield.

Is SHAG better than SCHD?

SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.