SCHD vs USFR

SCHD vs USFR

Which is better, SCHD or USFR?

Large Cap Value against Ultrashort Term Bond.

SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.

Lower Fees: SCHDHigher Returns: SCHD

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricSCHDUSFR
Expense Ratio0.06%Best0.15%
AUM$112.1B$18.8B
Dividend Yield3.00%3.75%
Holdings1036
YTD Return+23.68%Best+2.82%
1Y Return+28.36%Best+4.07%
3Y Return (annualized)+16.20%Best+4.63%
5Y Return (annualized)+10.07%Best+3.83%
Volatility (annualized)14.4%0.9%Best
Max Drawdown-33.4%-1.4%Best
$10,000 over 5 years$16,156Best$12,067
Fund FamilyCharles Schwab Asset ManagementWisdomTree Investments
CategoryEquityFixed Income
StyleLarge Cap ValueUltrashort Term Bond
InceptionOct 20, 2011Feb 4, 2014

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Feb 4, 2014 to Sep 22, 2026 (12.6 years).

SCHD vs USFR growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.

SCHD vs USFR Performance

Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and WisdomTree Floating Rate Treasury Fund (USFR) is an ETF from WisdomTree Investments. Over the past year SCHD returned +28.36% while USFR returned +4.07%. Year to date, SCHD is up 23.68% versus a gain of 2.82% for USFR.

Over three years, SCHD compounded at +16.20% per year against +4.63% for USFR; over five years the annualized figures are +10.07% and +3.83% respectively. Across the full 13-year window we track, SCHD has the edge at +10.63% annualized vs +1.52%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 14.4% compared with 0.9% for USFR. 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 -1.4% for USFR. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.03. They move largely independently of each other.

Fees and Cost Over Time

SCHD charges 0.06% per year while USFR 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 3.00% against 3.75% for USFR.

You are not choosing between two funds in isolation.

Whichever of SCHD and USFR you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

SCHDUSFR

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Frequently Asked Questions

Which is cheaper, SCHD or USFR?

SCHD has an expense ratio of 0.06% while USFR charges 0.15%. SCHD is the cheaper option, by $9 a year on a $10,000 investment.

Which performed better, SCHD or USFR?

Over the past year SCHD returned +28.36% vs +4.07% for USFR, so SCHD leads on 1-year performance. Over the longest common window we track (13 years), SCHD annualized +10.63% vs +1.52% for USFR. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, SCHD or USFR?

SCHD has been the more volatile fund at 14.4% annualized versus 0.9% for USFR. Worst drawdown: SCHD -33.4% vs USFR -1.4%.

Should I hold both SCHD and USFR?

SCHD and USFR have a monthly-return correlation of 0.03, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, SCHD or USFR?

SCHD yields 3.00% while USFR yields 3.75%, so USFR currently pays the higher dividend yield.

Is USFR better than SCHD?

SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.