SCHD vs ULST
SCHD vs ULST
Schwab US Dividend Equity ETF vs State Street Ultra Short Term Bond ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. ULST offers more diversification with 301 holdings.
Side-by-Side Comparison
| Metric | SCHD | ULST | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.20% | |
| AUM | $103.7B | $527M | |
| Dividend Yield | 3.31% | 4.28% | |
| Holdings | 104 | 328 | |
| YTD Return | +24.26% | +1.50% | |
| 1Y Return | +31.38% | +3.24% | |
| 3Y Return (annualized) | +15.08% | +4.54% | |
| 5Y Return (annualized) | +9.72% | +3.49% | |
| Volatility (annualized) | 13.6% | 1.5% | |
| Max Drawdown | -33.4% | -6.3% | |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Oct 9, 2013 |
SCHD vs ULST Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and State Street Ultra Short Term Bond ETF (ULST) is a ETF from State Street Investment Management. Over the past year SCHD returned +31.38% while ULST returned +3.24%. Year to date, SCHD is up 24.26% versus a gain of 1.50% for ULST.
Over three years, SCHD compounded at +15.08% per year against +4.54% for ULST; over five years the annualized figures are +9.72% and +3.49% respectively. Across the full 13-year window we track, SCHD has the edge at +11.39% annualized vs +1.45%. 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 1.5% for ULST. 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 -6.3% for ULST. 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while ULST charges 0.20%. On a $10,000 position that is $6 vs $20 annually, a gap of $14 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 4.28% for ULST.
Holdings Overlap
SCHD and ULST share 0 holdings out of 401 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 ULST?
SCHD has an expense ratio of 0.06% while ULST charges 0.20%. SCHD is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, SCHD or ULST?
Over the past year SCHD returned +31.38% vs +3.24% for ULST, so SCHD leads on 1-year performance. Over the longest common window we track (13 years), SCHD annualized +11.39% vs +1.45% for ULST. Past performance does not guarantee future results.
Which is riskier, SCHD or ULST?
SCHD has been the more volatile fund at 13.6% annualized versus 1.5% for ULST. Worst drawdown: SCHD -33.4% vs ULST -6.3%.
Should I hold both SCHD and ULST?
SCHD and ULST have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and ULST?
SCHD and ULST share 0 common holdings with a 0.0% weight overlap. Combined, they hold 401 unique securities.
Which pays a higher dividend, SCHD or ULST?
SCHD yields 3.31% while ULST yields 4.28%, so ULST currently pays the higher dividend yield.
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