SCHD vs TBLD
Schwab US Dividend Equity ETF vs Thornburg Income Builder Opportunities Trust
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. TBLD offers more diversification with 107 holdings.
Side-by-Side Comparison
| Metric | SCHD | TBLD | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 1.65% | |
| AUM | $103.7B | $746M | |
| Dividend Yield | 3.31% | 5.40% | |
| Holdings | 104 | 176 | |
| YTD Return | +24.26% | +13.83% | |
| 1Y Return | +31.38% | +19.40% | |
| 3Y Return (annualized) | +15.08% | +21.48% | |
| 5Y Return (annualized) | +9.72% | +9.67% | |
| Volatility (annualized) | 13.6% | 15.2% | |
| Max Drawdown | -33.4% | -33.6% | |
| Fund Family | Charles Schwab Asset Management | Thornburg Investment Management | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Jul 27, 2021 |
SCHD vs TBLD Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Thornburg Income Builder Opportunities Trust (TBLD) is a ETF from Thornburg Investment Management. Over the past year SCHD returned +31.38% while TBLD returned +19.40%. Year to date, SCHD is up 24.26% versus a gain of 13.83% for TBLD.
Over three years, SCHD compounded at +15.08% per year against +21.48% for TBLD; over five years the annualized figures are +9.72% and +9.67% respectively. Across the full 5-year window we track, SCHD has the edge at +11.39% annualized vs +9.86%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TBLD has been the more volatile fund, with annualized monthly volatility of 15.2% compared with 13.6% for SCHD. 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 -33.6% for TBLD. 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TBLD charges 1.65%. On a $10,000 position that is $6 vs $165 annually, a gap of $159 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 5.40% for TBLD.
Holdings Overlap
SCHD and TBLD share 3 holdings out of 204 unique holdings combined, representing a 2.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or TBLD?
SCHD has an expense ratio of 0.06% while TBLD charges 1.65%. SCHD is the cheaper option. On a $10,000 investment, that is $159 per year of difference.
Which performed better, SCHD or TBLD?
Over the past year SCHD returned +31.38% vs +19.40% for TBLD, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), SCHD annualized +11.39% vs +9.86% for TBLD. Past performance does not guarantee future results.
Which is riskier, SCHD or TBLD?
TBLD has been the more volatile fund at 15.2% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TBLD -33.6%.
Should I hold both SCHD and TBLD?
SCHD and TBLD have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TBLD?
SCHD and TBLD share 3 common holdings with a 2.5% weight overlap. Combined, they hold 204 unique securities.
Which pays a higher dividend, SCHD or TBLD?
SCHD yields 3.31% while TBLD yields 5.40%, so TBLD currently pays the higher dividend yield.
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