SCHD vs TLTW
Schwab US Dividend Equity ETF vs iShares 20+ Year Treasury Bond BuyWrite Strategy 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 | TLTW | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.35% | |
| AUM | $103.7B | $1.9B | |
| Dividend Yield | 3.31% | 11.59% | |
| Holdings | 104 | 4 | |
| YTD Return | +25.58% | -6.45% | |
| 1Y Return | +31.06% | -3.26% | |
| 3Y Return (annualized) | +15.55% | -0.71% | |
| 5Y Return (annualized) | +9.61% | - | |
| Volatility (annualized) | 13.6% | 12.1% | |
| Max Drawdown | -33.4% | -18.6% | |
| Fund Family | Charles Schwab Asset Management | iShares by BlackRock (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Aug 18, 2022 |
SCHD vs TLTW Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW) is a ETF from iShares by BlackRock (US). Over the past year SCHD returned +31.06% while TLTW returned -3.26%. Year to date, SCHD is up 25.58% versus a loss of 6.45% for TLTW.
Over three years, SCHD compounded at +15.55% per year against -0.71% for TLTW. Across the full 4-year window we track, SCHD has the edge at +11.46% annualized vs -2.49%. 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 12.1% for TLTW. 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 -18.6% for TLTW. 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TLTW 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 3.31% against 11.59% for TLTW.
Holdings Overlap
SCHD and TLTW share 0 holdings out of 102 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 TLTW?
SCHD has an expense ratio of 0.06% while TLTW 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 TLTW?
Over the past year SCHD returned +31.06% vs -3.26% for TLTW, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), SCHD annualized +11.46% vs -2.49% for TLTW. Past performance does not guarantee future results.
Which is riskier, SCHD or TLTW?
SCHD has been the more volatile fund at 13.6% annualized versus 12.1% for TLTW. Worst drawdown: SCHD -33.4% vs TLTW -18.6%.
Should I hold both SCHD and TLTW?
SCHD and TLTW have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TLTW?
SCHD and TLTW share 0 common holdings with a 0.0% weight overlap. Combined, they hold 102 unique securities.
Which pays a higher dividend, SCHD or TLTW?
SCHD yields 3.31% while TLTW yields 11.59%, so TLTW currently pays the higher dividend yield.
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