SCHD vs XFIV
Schwab US Dividend Equity ETF vs BondBloxx Bloomberg Five Year Target Duration US Treasury ETF
Quick Verdict
XFIV has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | SCHD | XFIV | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.05% | |
| AUM | $103.7B | $322M | |
| Dividend Yield | 3.31% | 3.79% | |
| Holdings | 104 | 51 | |
| YTD Return | +26.21% | -0.54% | |
| 1Y Return | +29.99% | +1.19% | |
| 3Y Return (annualized) | +15.73% | +3.98% | |
| 5Y Return (annualized) | +9.67% | - | |
| Volatility (annualized) | 13.6% | 5.0% | |
| Max Drawdown | -33.4% | -6.4% | |
| Fund Family | Charles Schwab Asset Management | BondBloxx | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Sep 13, 2022 |
SCHD vs XFIV Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and BondBloxx Bloomberg Five Year Target Duration US Treasury ETF (XFIV) is a ETF from BondBloxx. Over the past year SCHD returned +29.99% while XFIV returned +1.19%. Year to date, SCHD is up 26.21% versus a loss of 0.54% for XFIV.
Over three years, SCHD compounded at +15.73% per year against +3.98% for XFIV. Across the full 4-year window we track, SCHD has the edge at +11.50% annualized vs +2.94%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 5.0% for XFIV. 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 -6.4% for XFIV. 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while XFIV charges 0.05%. On a $10,000 position that is $6 vs $5 annually, a gap of $1 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 3.79% for XFIV.
Holdings Overlap
SCHD and XFIV share 0 holdings out of 132 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 XFIV?
SCHD has an expense ratio of 0.06% while XFIV charges 0.05%. XFIV is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, SCHD or XFIV?
Over the past year SCHD returned +29.99% vs +1.19% for XFIV, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), SCHD annualized +11.50% vs +2.94% for XFIV. Past performance does not guarantee future results.
Which is riskier, SCHD or XFIV?
SCHD has been the more volatile fund at 13.6% annualized versus 5.0% for XFIV. Worst drawdown: SCHD -33.4% vs XFIV -6.4%.
Should I hold both SCHD and XFIV?
SCHD and XFIV have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and XFIV?
SCHD and XFIV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 132 unique securities.
Which pays a higher dividend, SCHD or XFIV?
SCHD yields 3.31% while XFIV yields 3.79%, so XFIV currently pays the higher dividend yield.
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