SCHD vs TBT
Schwab US Dividend Equity ETF vs ProShares UltraShort 20+ Year Treasury 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 | TBT | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.93% | |
| AUM | $103.7B | $297M | |
| Dividend Yield | 3.31% | 2.78% | |
| Holdings | 104 | 10 | |
| YTD Return | +25.58% | +11.22% | |
| 1Y Return | +31.06% | +9.93% | |
| 3Y Return (annualized) | +15.55% | +7.71% | |
| 5Y Return (annualized) | +9.61% | +19.50% | |
| Volatility (annualized) | 13.6% | 28.1% | |
| Max Drawdown | -33.4% | -95.2% | |
| Fund Family | Charles Schwab Asset Management | ProShares | |
| Category | Equity | Alternative | |
| Inception | Oct 20, 2011 | Apr 29, 2008 |
SCHD vs TBT Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and ProShares UltraShort 20+ Year Treasury ETF (TBT) is a ETF from ProShares. Over the past year SCHD returned +31.06% while TBT returned +9.93%. Year to date, SCHD is up 25.58% versus a gain of 11.22% for TBT.
Over three years, SCHD compounded at +15.55% per year against +7.71% for TBT; over five years the annualized figures are +9.61% and +19.50% respectively. Across the full 15-year window we track, SCHD has the edge at +11.46% annualized vs -9.56%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TBT has been the more volatile fund, with annualized monthly volatility of 28.1% 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 -95.2% for TBT. 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 0.00. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TBT charges 0.93%. On a $10,000 position that is $6 vs $93 annually, a gap of $87 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 2.78% for TBT.
Holdings Overlap
SCHD and TBT share 0 holdings out of 101 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 TBT?
SCHD has an expense ratio of 0.06% while TBT charges 0.93%. SCHD is the cheaper option. On a $10,000 investment, that is $87 per year of difference.
Which performed better, SCHD or TBT?
Over the past year SCHD returned +31.06% vs +9.93% for TBT, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.46% vs -9.56% for TBT. Past performance does not guarantee future results.
Which is riskier, SCHD or TBT?
TBT has been the more volatile fund at 28.1% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TBT -95.2%.
Should I hold both SCHD and TBT?
SCHD and TBT have a monthly-return correlation of 0.00, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TBT?
SCHD and TBT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 101 unique securities.
Which pays a higher dividend, SCHD or TBT?
SCHD yields 3.31% while TBT yields 2.78%, so SCHD currently pays the higher dividend yield.
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