SCHD vs SHY
Schwab US Dividend Equity ETF vs iShares 1-3 Year Treasury Bond ETF
Which is better, SCHD or SHY?
Large Cap Value against Short Term Government Bond.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.
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
| Metric | SCHD | SHY |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.15% |
| AUM | $108.9B | $26.3B |
| Dividend Yield | 3.00% | 3.63% |
| Holdings | 206 | 93 |
| YTD Return | +20.67%Best | +0.51% |
| 1Y Return | +22.79%Best | +1.51% |
| 3Y Return (annualized) | +15.93%Best | +4.13% |
| 5Y Return (annualized) | +9.26%Best | +1.82% |
| Volatility (annualized) | 13.7% | 1.4%Best |
| Max Drawdown | -33.4% | -6.1%Best |
| $10,000 over 5 years | $15,571Best | $10,944 |
| Fund Family | Charles Schwab Asset Management | iShares by BlackRock (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Value | Short Term Government Bond |
| Inception | Oct 20, 2011 | Jul 22, 2002 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Oct 1, 2026 (14.9 years).
SCHD vs SHY 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 SHY Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and iShares 1-3 Year Treasury Bond ETF (SHY) is an ETF from iShares by BlackRock (US). Over the past year SCHD returned +22.79% while SHY returned +1.51%. Year to date, SCHD is up 20.67% versus a gain of 0.51% for SHY.
Over three years, SCHD compounded at +15.93% per year against +4.13% for SHY; over five years the annualized figures are +9.26% and +1.82% respectively. Across the full 15-year window we track, SCHD has the edge at +11.05% annualized vs +0.75%.
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 1.4% for SHY. 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 -6.1% for SHY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.06. They move largely independently of each other.
Fees and Cost Over Time
SCHD charges 0.06% per year while SHY 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 3.00% against 3.63% for SHY.
Holdings Overlap
We hold position weights for 99 holdings in SCHD and 69 in SHY, totalling 100.0% and 79.4% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 99 positions we hold weights for in SCHD and 69 in SHY, against full books of 206 and 93.
You are not choosing between two funds in isolation.
Whichever of SCHD and SHY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SCHD or SHY?
SCHD has an expense ratio of 0.06% while SHY charges 0.15%. SCHD is the cheaper option, by $9 a year on a $10,000 investment.
Which performed better, SCHD or SHY?
Over the past year SCHD returned +22.79% vs +1.51% for SHY, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.05% vs +0.75% for SHY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or SHY?
SCHD has been the more volatile fund at 13.7% annualized versus 1.4% for SHY. Worst drawdown: SCHD -33.4% vs SHY -6.1%.
Should I hold both SCHD and SHY?
SCHD and SHY have a monthly-return correlation of 0.06, 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 SHY?
SCHD yields 3.00% while SHY yields 3.63%, so SHY currently pays the higher dividend yield.
Is SHY 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.