SCHD vs WBND
Schwab US Dividend Equity ETF vs Western Asset Total Return ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. WBND offers more diversification with 512 holdings.
Side-by-Side Comparison
| Metric | SCHD | WBND | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.65% | |
| AUM | $103.7B | $10M | |
| Dividend Yield | 3.31% | 4.06% | |
| Holdings | 104 | 512 | |
| YTD Return | +25.62% | +4.40% | |
| 1Y Return | +32.62% | +1.11% | |
| 3Y Return (annualized) | +15.58% | +1.75% | |
| 5Y Return (annualized) | +9.63% | -2.98% | |
| Volatility (annualized) | 13.6% | 142.2% | |
| Max Drawdown | -33.4% | -81.5% | |
| Fund Family | Charles Schwab Asset Management | Franklin Templeton Investments (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Oct 3, 2018 |
SCHD vs WBND Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Western Asset Total Return ETF (WBND) is a ETF from Franklin Templeton Investments (US). Over the past year SCHD returned +32.62% while WBND returned +1.11%. Year to date, SCHD is up 25.62% versus a gain of 4.40% for WBND.
Over three years, SCHD compounded at +15.58% per year against +1.75% for WBND; over five years the annualized figures are +9.63% and -2.98% respectively. Across the full 7-year window we track, SCHD has the edge at +11.47% annualized vs +0.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
WBND has been the more volatile fund, with annualized monthly volatility of 142.2% compared with 13.6% for SCHD. 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 -81.5% for WBND. 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 0.07. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while WBND charges 0.65%. On a $10,000 position that is $6 vs $65 annually, a gap of $59 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 4.06% for WBND.
Frequently Asked Questions
Which is cheaper, SCHD or WBND?
SCHD has an expense ratio of 0.06% while WBND charges 0.65%. SCHD is the cheaper option. On a $10,000 investment, that is $59 per year of difference.
Which performed better, SCHD or WBND?
Over the past year SCHD returned +32.62% vs +1.11% for WBND, so SCHD leads on 1-year performance. Over the longest common window we track (7 years), SCHD annualized +11.47% vs +0.85% for WBND. Past performance does not guarantee future results.
Which is riskier, SCHD or WBND?
WBND has been the more volatile fund at 142.2% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs WBND -81.5%.
Should I hold both SCHD and WBND?
SCHD and WBND have a monthly-return correlation of 0.07, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, SCHD or WBND?
SCHD yields 3.31% while WBND yields 4.06%, so WBND currently pays the higher dividend yield.
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