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 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | SHV | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.15% | |
| AUM | $103.7B | $20.8B | |
| Dividend Yield | 3.31% | 3.82% | |
| Holdings | 104 | 66 | |
| YTD Return | +24.26% | +1.76% | |
| 1Y Return | +31.38% | +3.47% | |
| 3Y Return (annualized) | +15.08% | +4.59% | |
| 5Y Return (annualized) | +9.72% | +3.47% | |
| 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 +31.38% while SHV returned +3.47%. Year to date, SCHD is up 24.26% versus a gain of 1.76% for SHV.
Over three years, SCHD compounded at +15.08% per year against +4.59% for SHV; over five years the annualized figures are +9.72% and +3.47% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +0.96%. 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 -0.02. 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 3.31% against 3.82% for SHV.
Holdings Overlap
SCHD and SHV share 0 holdings out of 116 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 +31.38% vs +3.47% for SHV, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs +0.96% 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 -0.02, 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 116 unique securities.
Which pays a higher dividend, SCHD or SHV?
SCHD yields 3.31% while SHV yields 3.82%, so SHV currently pays the higher dividend yield.
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