SCHD vs STIP
SCHD vs STIP
Schwab US Dividend Equity ETF vs iShares 0-5 Year TIPS Bond ETF
Quick Verdict
STIP has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | STIP | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $103.7B | $15.9B | |
| Dividend Yield | 3.31% | 4.32% | |
| Holdings | 104 | 27 | |
| YTD Return | +24.26% | +1.15% | |
| 1Y Return | +31.38% | +2.25% | |
| 3Y Return (annualized) | +15.08% | +4.74% | |
| 5Y Return (annualized) | +9.72% | +3.03% | |
| Volatility (annualized) | 13.6% | 2.2% | |
| Max Drawdown | -33.4% | -6.9% | |
| Fund Family | Charles Schwab Asset Management | iShares by BlackRock (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Dec 1, 2010 |
SCHD vs STIP Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and iShares 0-5 Year TIPS Bond ETF (STIP) is a ETF from iShares by BlackRock (US). Over the past year SCHD returned +31.38% while STIP returned +2.25%. Year to date, SCHD is up 24.26% versus a gain of 1.15% for STIP.
Over three years, SCHD compounded at +15.08% per year against +4.74% for STIP; over five years the annualized figures are +9.72% and +3.03% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +1.51%. 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 2.2% for STIP. 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 -6.9% for STIP. 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while STIP charges 0.03%. On a $10,000 position that is $6 vs $3 annually, a gap of $3 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 4.32% for STIP.
Holdings Overlap
SCHD and STIP share 0 holdings out of 124 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 STIP?
SCHD has an expense ratio of 0.06% while STIP charges 0.03%. STIP is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHD or STIP?
Over the past year SCHD returned +31.38% vs +2.25% for STIP, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs +1.51% for STIP. Past performance does not guarantee future results.
Which is riskier, SCHD or STIP?
SCHD has been the more volatile fund at 13.6% annualized versus 2.2% for STIP. Worst drawdown: SCHD -33.4% vs STIP -6.9%.
Should I hold both SCHD and STIP?
SCHD and STIP have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and STIP?
SCHD and STIP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 124 unique securities.
Which pays a higher dividend, SCHD or STIP?
SCHD yields 3.31% while STIP yields 4.32%, so STIP currently pays the higher dividend yield.
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