SCHD vs XTWO
Schwab US Dividend Equity ETF vs BondBloxx Bloomberg Two Year Target Duration US Treasury ETF
Which is better, SCHD or XTWO?
Large Cap Value against Short Term Bond.
XTWO 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 | XTWO |
|---|---|---|
| Expense Ratio | 0.06% | 0.05%Best |
| AUM | $112.1B | $249M |
| Dividend Yield | 3.00% | 3.97% |
| Holdings | 103 | 96 |
| YTD Return | +24.23%Best | +0.45% |
| 1Y Return | +27.90%Best | +1.57% |
| 3Y Return (annualized) | +15.55%Best | +4.09% |
| 5Y Return (annualized) | +9.97% | - |
| Volatility (annualized) | 14.2% | 1.9%Best |
| Max Drawdown | -16.1% | -1.7%Best |
| $10,000 over 4 years | $16,525Best | $11,458 |
| Fund Family | Charles Schwab Asset Management | BondBloxx |
| Category | Equity | Fixed Income |
| Style | Large Cap Value | Short Term Bond |
| Inception | Oct 20, 2011 | Sep 13, 2022 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 4 years row, are measured over the window both funds cover: Sep 16, 2022 to Sep 17, 2026 (4 years).
SCHD vs XTWO 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 years both funds cover.
SCHD vs XTWO Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and BondBloxx Bloomberg Two Year Target Duration US Treasury ETF (XTWO) is an ETF from BondBloxx. Over the past year SCHD returned +27.90% while XTWO returned +1.57%. Year to date, SCHD is up 24.23% versus a gain of 0.45% for XTWO.
Over three years, SCHD compounded at +15.55% per year against +4.09% for XTWO. Across the full 4-year window we track, SCHD has the edge at +13.38% annualized vs +3.46%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 14.2% compared with 1.9% for XTWO. 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 -1.7% for XTWO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.26. They move largely independently of each other.
Fees and Cost Over Time
SCHD charges 0.06% per year while XTWO 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 3.00% against 3.97% for XTWO.
Holdings Overlap
We hold position weights for 100 holdings in SCHD and 74 in XTWO, totalling 100.0% and 82.7% 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 74 in XTWO, against full books of 103 and 96.
You are not choosing between two funds in isolation.
Whichever of SCHD and XTWO 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 XTWO?
SCHD has an expense ratio of 0.06% while XTWO charges 0.05%. XTWO is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, SCHD or XTWO?
Over the past year SCHD returned +27.90% vs +1.57% for XTWO, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), SCHD annualized +13.38% vs +3.46% for XTWO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or XTWO?
SCHD has been the more volatile fund at 14.2% annualized versus 1.9% for XTWO. Worst drawdown: SCHD -16.1% vs XTWO -1.7%.
Should I hold both SCHD and XTWO?
SCHD and XTWO have a monthly-return correlation of 0.26, 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 XTWO?
SCHD yields 3.00% while XTWO yields 3.97%, so XTWO currently pays the higher dividend yield.
Is XTWO better than SCHD?
XTWO 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.