SCHD vs TAXX
Schwab US Dividend Equity ETF vs BondBloxx IR+M Tax-Aware Short Duration ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. TAXX offers more diversification with 311 holdings.
Side-by-Side Comparison
| Metric | SCHD | TAXX | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.35% | |
| AUM | $108.7B | $286M | |
| Dividend Yield | 3.13% | 3.45% | |
| Holdings | 104 | 311 | |
| YTD Return | +28.70% | +1.52% | |
| 1Y Return | +31.07% | +2.92% | |
| 3Y Return (annualized) | +16.88% | - | |
| 5Y Return (annualized) | +10.20% | - | |
| Volatility (annualized) | 13.7% | 1.4% | |
| Max Drawdown | -33.4% | -0.9% | |
| Fund Family | Charles Schwab Asset Management | BondBloxx | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Mar 14, 2024 |
SCHD vs TAXX Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and BondBloxx IR+M Tax-Aware Short Duration ETF (TAXX) is a ETF from BondBloxx. Over the past year SCHD returned +31.07% while TAXX returned +2.92%. Year to date, SCHD is up 28.70% versus a gain of 1.52% for TAXX.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 1.4% for TAXX. 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 TAXX. 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TAXX charges 0.35%. On a $10,000 position that is $6 vs $35 annually, a gap of $29 per year that compounds over a long holding period. On income, SCHD currently yields 3.13% against 3.45% for TAXX.
Holdings Overlap
SCHD and TAXX share 0 holdings out of 224 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 TAXX?
SCHD has an expense ratio of 0.06% while TAXX charges 0.35%. SCHD is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, SCHD or TAXX?
Over the past year SCHD returned +31.07% vs +2.92% for TAXX, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), SCHD annualized +11.62% vs +3.92% for TAXX. Past performance does not guarantee future results.
Which is riskier, SCHD or TAXX?
SCHD has been the more volatile fund at 13.7% annualized versus 1.4% for TAXX. Worst drawdown: SCHD -33.4% vs TAXX -0.9%.
Should I hold both SCHD and TAXX?
SCHD and TAXX have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TAXX?
SCHD and TAXX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 224 unique securities.
Which pays a higher dividend, SCHD or TAXX?
SCHD yields 3.13% while TAXX yields 3.45%, so TAXX currently pays the higher dividend yield.
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