SCHD vs TFLO
Schwab US Dividend Equity ETF vs iShares Treasury Floating Rate Bond 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 | TFLO | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.15% | |
| AUM | $103.7B | $6.6B | |
| Dividend Yield | 3.31% | 3.89% | |
| Holdings | 104 | 10 | |
| YTD Return | +24.26% | +1.96% | |
| 1Y Return | +31.38% | +3.62% | |
| 3Y Return (annualized) | +15.08% | +4.55% | |
| 5Y Return (annualized) | +9.72% | +3.72% | |
| Volatility (annualized) | 13.6% | 0.7% | |
| Max Drawdown | -33.4% | -5.0% | |
| Fund Family | Charles Schwab Asset Management | iShares by BlackRock (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Feb 4, 2014 |
SCHD vs TFLO Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and iShares Treasury Floating Rate Bond ETF (TFLO) is a ETF from iShares by BlackRock (US). Over the past year SCHD returned +31.38% while TFLO returned +3.62%. Year to date, SCHD is up 24.26% versus a gain of 1.96% for TFLO.
Over three years, SCHD compounded at +15.08% per year against +4.55% for TFLO; over five years the annualized figures are +9.72% and +3.72% respectively. Across the full 13-year window we track, SCHD has the edge at +11.39% annualized vs +1.50%. 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 0.7% for TFLO. 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 -5.0% for TFLO. 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 TFLO charges 0.15%. On a $10,000 position that is $6 vs $15 annually, a gap of $9 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 3.89% for TFLO.
Holdings Overlap
SCHD and TFLO share 0 holdings out of 104 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 TFLO?
SCHD has an expense ratio of 0.06% while TFLO charges 0.15%. SCHD is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, SCHD or TFLO?
Over the past year SCHD returned +31.38% vs +3.62% for TFLO, so SCHD leads on 1-year performance. Over the longest common window we track (13 years), SCHD annualized +11.39% vs +1.50% for TFLO. Past performance does not guarantee future results.
Which is riskier, SCHD or TFLO?
SCHD has been the more volatile fund at 13.6% annualized versus 0.7% for TFLO. Worst drawdown: SCHD -33.4% vs TFLO -5.0%.
Should I hold both SCHD and TFLO?
SCHD and TFLO 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 TFLO?
SCHD and TFLO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, SCHD or TFLO?
SCHD yields 3.31% while TFLO yields 3.89%, so TFLO currently pays the higher dividend yield.
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