SCHD vs XTWO
SCHD vs XTWO
Schwab US Dividend Equity ETF vs BondBloxx Bloomberg Two Year Target Duration US Treasury ETF
Quick Verdict
XTWO has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | XTWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.05% | |
| AUM | $103.7B | $206M | |
| Dividend Yield | 3.31% | 4.07% | |
| Holdings | 104 | 97 | |
| YTD Return | +24.26% | +0.60% | |
| 1Y Return | +31.38% | +2.46% | |
| 3Y Return (annualized) | +15.08% | +4.11% | |
| 5Y Return (annualized) | +9.72% | - | |
| Volatility (annualized) | 13.6% | 1.9% | |
| Max Drawdown | -33.4% | -1.7% | |
| Fund Family | Charles Schwab Asset Management | BondBloxx | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Sep 13, 2022 |
SCHD vs XTWO Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and BondBloxx Bloomberg Two Year Target Duration US Treasury ETF (XTWO) is a ETF from BondBloxx. Over the past year SCHD returned +31.38% while XTWO returned +2.46%. Year to date, SCHD is up 24.26% versus a gain of 0.60% for XTWO.
Over three years, SCHD compounded at +15.08% per year against +4.11% for XTWO. Across the full 4-year window we track, SCHD has the edge at +11.39% annualized vs +3.60%. 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 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 -33.4% for SCHD and -1.7% for XTWO. 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
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 3.31% against 4.07% for XTWO.
Holdings Overlap
SCHD and XTWO share 0 holdings out of 177 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 XTWO?
SCHD has an expense ratio of 0.06% while XTWO charges 0.05%. XTWO is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, SCHD or XTWO?
Over the past year SCHD returned +31.38% vs +2.46% for XTWO, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), SCHD annualized +11.39% vs +3.60% for XTWO. Past performance does not guarantee future results.
Which is riskier, SCHD or XTWO?
SCHD has been the more volatile fund at 13.6% annualized versus 1.9% for XTWO. Worst drawdown: SCHD -33.4% vs XTWO -1.7%.
Should I hold both SCHD and XTWO?
SCHD and XTWO have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and XTWO?
SCHD and XTWO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 177 unique securities.
Which pays a higher dividend, SCHD or XTWO?
SCHD yields 3.31% while XTWO yields 4.07%, so XTWO currently pays the higher dividend yield.
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