SCHD vs SHV
Schwab US Dividend Equity ETF vs iShares 0-1 Year Treasury Bond ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | SCHD | SHV | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.15% | |
| AUM | $112.2B | $21.0B | |
| Dividend Yield | 3.13% | 3.78% | |
| Holdings | 103 | 67 | |
| YTD Return | +27.89% | +2.28% | |
| 1Y Return | +29.93% | +3.67% | |
| 3Y Return (annualized) | +16.13% | +4.63% | |
| 5Y Return (annualized) | +10.00% | +3.58% | |
| Volatility (annualized) | 13.6% | 0.6% | |
| Max Drawdown | -33.4% | -0.9% | |
| Fund Family | Charles Schwab Asset Management | iShares by BlackRock (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Jan 5, 2007 |
SCHD vs SHV Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and iShares 0-1 Year Treasury Bond ETF (SHV) is a ETF from iShares by BlackRock (US). Over the past year SCHD returned +29.93% while SHV returned +3.67%. Year to date, SCHD is up 27.89% versus a gain of 2.28% for SHV.
Over three years, SCHD compounded at +16.13% per year against +4.63% for SHV; over five years the annualized figures are +10.00% and +3.58% respectively. Across the full 15-year window we track, SCHD has the edge at +11.56% annualized vs +0.98%. 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 0.6% for SHV. 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 -0.9% for SHV. 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 -0.01. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SHV charges 0.15%. On a $10,000 position that is $6 vs $15 annually, a gap of $9 per year that compounds over a long holding period. On income, SCHD currently yields 3.13% against 3.78% for SHV.
Holdings Overlap
SCHD and SHV share 0 holdings out of 117 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 SHV?
SCHD has an expense ratio of 0.06% while SHV charges 0.15%. SCHD is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, SCHD or SHV?
Over the past year SCHD returned +29.93% vs +3.67% for SHV, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.56% vs +0.98% for SHV. Past performance does not guarantee future results.
Which is riskier, SCHD or SHV?
SCHD has been the more volatile fund at 13.6% annualized versus 0.6% for SHV. Worst drawdown: SCHD -33.4% vs SHV -0.9%.
Should I hold both SCHD and SHV?
SCHD and SHV have a monthly-return correlation of -0.01, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SHV?
SCHD and SHV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 117 unique securities.
Which pays a higher dividend, SCHD or SHV?
SCHD yields 3.13% while SHV yields 3.78%, so SHV currently pays the higher dividend yield.
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