SCHD vs XBB
Schwab US Dividend Equity ETF vs BondBloxx BB Rated USD High Yield Corporate Bond ETF
Which is better, SCHD or XBB?
Large Cap Value against Long Term High Quality.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y 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 | XBB |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.20% |
| AUM | $112.1B | $580M |
| Dividend Yield | 3.00% | 5.54% |
| Holdings | 103 | 1,006 |
| YTD Return | +25.07%Best | +1.11% |
| 1Y Return | +27.61%Best | +2.63% |
| 3Y Return (annualized) | +15.74%Best | +7.42% |
| 5Y Return (annualized) | +9.89% | - |
| Volatility (annualized) | 15.0% | 7.3%Best |
| Max Drawdown | -16.1% | -8.9%Best |
| $10,000 over 4.3 years | $15,362Best | $12,466 |
| Fund Family | Charles Schwab Asset Management | BondBloxx |
| Category | Equity | Fixed Income |
| Style | Large Cap Value | Long Term High Quality |
| Inception | Oct 20, 2011 | May 24, 2022 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 4.3 years row, are measured over the window both funds cover: May 26, 2022 to Sep 11, 2026 (4.3 years).
SCHD vs XBB 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 4.3 years both funds cover.
SCHD vs XBB Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and BondBloxx BB Rated USD High Yield Corporate Bond ETF (XBB) is an ETF from BondBloxx. Over the past year SCHD returned +27.61% while XBB returned +2.63%. Year to date, SCHD is up 25.07% versus a gain of 1.11% for XBB.
Over three years, SCHD compounded at +15.74% per year against +7.42% for XBB. Across the full 4-year window we track, SCHD has the edge at +10.50% annualized vs +5.26%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 15.0% compared with 7.3% for XBB. 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 -16.1% for SCHD and -8.9% for XBB. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while XBB 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 3.00% against 5.54% for XBB.
Holdings Overlap
We hold position weights for 100 holdings in SCHD and 685 in XBB, totalling 100.0% and 66.9% 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 685 in XBB, against full books of 103 and 1,006.
You are not choosing between two funds in isolation.
Whichever of SCHD and XBB 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 XBB?
SCHD has an expense ratio of 0.06% while XBB charges 0.20%. SCHD is the cheaper option, by $14 a year on a $10,000 investment.
Which performed better, SCHD or XBB?
Over the past year SCHD returned +27.61% vs +2.63% for XBB, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), SCHD annualized +10.50% vs +5.26% for XBB. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or XBB?
SCHD has been the more volatile fund at 15.0% annualized versus 7.3% for XBB. Worst drawdown: SCHD -16.1% vs XBB -8.9%.
Should I hold both SCHD and XBB?
SCHD and XBB have a monthly-return correlation of 0.70, 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 XBB?
SCHD yields 3.00% while XBB yields 5.54%, so XBB currently pays the higher dividend yield.
Is XBB better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.