SCHD vs WABF
Schwab US Dividend Equity ETF vs Western Asset Bond ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. WABF offers more diversification with 449 holdings.
Side-by-Side Comparison
| Metric | SCHD | WABF | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.35% | |
| AUM | $108.7B | $16M | |
| Dividend Yield | 3.13% | 5.26% | |
| Holdings | 104 | 449 | |
| YTD Return | +28.70% | +0.27% | |
| 1Y Return | +31.07% | +2.77% | |
| 3Y Return (annualized) | +16.88% | +5.50% | |
| 5Y Return (annualized) | +10.20% | - | |
| Volatility (annualized) | 13.7% | 6.5% | |
| Max Drawdown | -33.4% | -5.4% | |
| Fund Family | Charles Schwab Asset Management | Franklin Templeton Investments (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Sep 19, 2023 |
SCHD vs WABF Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Western Asset Bond ETF (WABF) is a ETF from Franklin Templeton Investments (US). Over the past year SCHD returned +31.07% while WABF returned +2.77%. Year to date, SCHD is up 28.70% versus a gain of 0.27% for WABF.
Over three years, SCHD compounded at +16.88% per year against +5.50% for WABF. Across the full 3-year window we track, SCHD has the edge at +11.62% annualized vs +5.50%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 6.5% for WABF. 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 -5.4% for WABF. 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while WABF 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 3.13% against 5.26% for WABF.
Holdings Overlap
SCHD and WABF share 0 holdings out of 381 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 WABF?
SCHD has an expense ratio of 0.06% while WABF 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 WABF?
Over the past year SCHD returned +31.07% vs +2.77% for WABF, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), SCHD annualized +11.62% vs +5.50% for WABF. Past performance does not guarantee future results.
Which is riskier, SCHD or WABF?
SCHD has been the more volatile fund at 13.7% annualized versus 6.5% for WABF. Worst drawdown: SCHD -33.4% vs WABF -5.4%.
Should I hold both SCHD and WABF?
SCHD and WABF have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and WABF?
SCHD and WABF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 381 unique securities.
Which pays a higher dividend, SCHD or WABF?
SCHD yields 3.13% while WABF yields 5.26%, so WABF currently pays the higher dividend yield.
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