SCHD vs USHY
Schwab US Dividend Equity ETF vs iShares Broad USD High Yield Corporate Bond ETF
Which is better, SCHD or USHY?
Large Cap Value against High Yield Bond.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.
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
| Metric | SCHD | USHY |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.08% |
| AUM | $112.1B | $28.5B |
| Dividend Yield | 3.00% | 6.91% |
| Holdings | 103 | 1,901 |
| YTD Return | +25.88%Best | -2.97% |
| 1Y Return | +30.22%Best | -2.23% |
| 3Y Return (annualized) | +16.05%Best | +6.42% |
| 5Y Return (annualized) | +10.17%Best | +2.75% |
| Volatility (annualized) | 16.1% | 9.6%Best |
| Max Drawdown | -33.4% | -31.0%Best |
| $10,000 over 5 years | $16,230Best | $11,453 |
| Fund Family | Charles Schwab Asset Management | iShares by BlackRock (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Value | High Yield Bond |
| Inception | Oct 20, 2011 | Oct 25, 2017 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 26, 2017 to Sep 14, 2026 (8.9 years).
SCHD vs USHY 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 covers the 8.9 years both funds cover.
SCHD vs USHY Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and iShares Broad USD High Yield Corporate Bond ETF (USHY) is an ETF from iShares by BlackRock (US). Over the past year SCHD returned +30.22% while USHY returned -2.23%. Year to date, SCHD is up 25.88% versus a loss of 2.97% for USHY.
Over three years, SCHD compounded at +16.05% per year against +6.42% for USHY; over five years the annualized figures are +10.17% and +2.75% respectively. Across the full 9-year window we track, SCHD has the edge at +11.24% annualized vs +1.92%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 16.1% compared with 9.6% for USHY. 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 -31.0% for USHY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.57. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SCHD charges 0.06% per year while USHY charges 0.08%. On a $10,000 position that is $6 vs $8 annually, a gap of $2 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 6.91% for USHY.
Holdings Overlap
We hold position weights for 100 holdings in SCHD and 1,097 in USHY, totalling 100.0% and 60.2% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 100 positions we hold weights for in SCHD and 1,097 in USHY, against full books of 103 and 1,901.
You are not choosing between two funds in isolation.
Whichever of SCHD and USHY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SCHD or USHY?
SCHD has an expense ratio of 0.06% while USHY charges 0.08%. SCHD is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, SCHD or USHY?
Over the past year SCHD returned +30.22% vs -2.23% for USHY, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), SCHD annualized +11.24% vs +1.92% for USHY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or USHY?
SCHD has been the more volatile fund at 16.1% annualized versus 9.6% for USHY. Worst drawdown: SCHD -33.4% vs USHY -31.0%.
Should I hold both SCHD and USHY?
SCHD and USHY have a monthly-return correlation of 0.57, 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 USHY?
SCHD yields 3.00% while USHY yields 6.91%, so USHY currently pays the higher dividend yield.
Is USHY 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.