SCHD vs TDTT
Schwab US Dividend Equity ETF vs FlexShares iBoxx 3 Year Target Duration TIPS Index Fund
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 | TDTT | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.18% | |
| AUM | $103.7B | $2.5B | |
| Dividend Yield | 3.31% | 4.57% | |
| Holdings | 104 | 24 | |
| YTD Return | +25.33% | +0.79% | |
| 1Y Return | +32.31% | +1.72% | |
| 3Y Return (annualized) | +15.40% | +4.64% | |
| 5Y Return (annualized) | +9.70% | +2.46% | |
| Volatility (annualized) | 13.6% | 2.7% | |
| Max Drawdown | -33.4% | -8.3% | |
| Fund Family | Charles Schwab Asset Management | Flexshares Trust | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Sep 19, 2011 |
SCHD vs TDTT Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and FlexShares iBoxx 3 Year Target Duration TIPS Index Fund (TDTT) is a ETF from Flexshares Trust. Over the past year SCHD returned +32.31% while TDTT returned +1.72%. Year to date, SCHD is up 25.33% versus a gain of 0.79% for TDTT.
Over three years, SCHD compounded at +15.40% per year against +4.64% for TDTT; over five years the annualized figures are +9.70% and +2.46% respectively. Across the full 15-year window we track, SCHD has the edge at +11.45% annualized vs +1.38%. 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 2.7% for TDTT. 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 -8.3% for TDTT. 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TDTT charges 0.18%. On a $10,000 position that is $6 vs $18 annually, a gap of $12 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 4.57% for TDTT.
Holdings Overlap
SCHD and TDTT share 0 holdings out of 120 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 TDTT?
SCHD has an expense ratio of 0.06% while TDTT charges 0.18%. SCHD is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, SCHD or TDTT?
Over the past year SCHD returned +32.31% vs +1.72% for TDTT, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.45% vs +1.38% for TDTT. Past performance does not guarantee future results.
Which is riskier, SCHD or TDTT?
SCHD has been the more volatile fund at 13.6% annualized versus 2.7% for TDTT. Worst drawdown: SCHD -33.4% vs TDTT -8.3%.
Should I hold both SCHD and TDTT?
SCHD and TDTT have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TDTT?
SCHD and TDTT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 120 unique securities.
Which pays a higher dividend, SCHD or TDTT?
SCHD yields 3.31% while TDTT yields 4.57%, so TDTT currently pays the higher dividend yield.
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