SCHD vs ZROZ
Schwab US Dividend Equity ETF vs PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund
Which is better, SCHD or ZROZ?
Large Cap Value against Long Term Government Bond.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y 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 | ZROZ |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.15% |
| AUM | $112.1B | $1.6B |
| Dividend Yield | 3.00% | 5.53% |
| Holdings | 103 | 23 |
| YTD Return | +25.07%Best | -7.24% |
| 1Y Return | +27.61%Best | -12.05% |
| 3Y Return (annualized) | +15.74%Best | -6.26% |
| 5Y Return (annualized) | +9.89%Best | -14.63% |
| Volatility (annualized) | 13.6%Best | 20.0% |
| Max Drawdown | -33.4%Best | -63.7% |
| $10,000 over 5 years | $16,025Best | $4,534 |
| Fund Family | Charles Schwab Asset Management | PIMCO (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Value | Long Term Government Bond |
| Inception | Oct 20, 2011 | Oct 30, 2009 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 11, 2026 (14.9 years).
SCHD vs ZROZ 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 14.9 years both funds cover.
SCHD vs ZROZ Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund (ZROZ) is an ETF from PIMCO (US). Over the past year SCHD returned +27.61% while ZROZ returned -12.05%. Year to date, SCHD is up 25.07% versus a loss of 7.24% for ZROZ.
Over three years, SCHD compounded at +15.74% per year against -6.26% for ZROZ; over five years the annualized figures are +9.89% and -14.63% respectively. Across the full 15-year window we track, SCHD has the edge at +11.36% annualized vs -2.47%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ZROZ has been the more volatile fund, with annualized monthly volatility of 20.0% 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 -63.7% for ZROZ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.01. They move largely independently of each other.
Fees and Cost Over Time
SCHD charges 0.06% per year while ZROZ charges 0.15%. On a $10,000 position that is $6 vs $15 annually, a gap of $9 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 5.53% for ZROZ.
Holdings Overlap
We hold position weights for 100 holdings in SCHD and 19 in ZROZ, totalling 100.0% and 86.6% 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 19 in ZROZ, against full books of 103 and 23.
You are not choosing between two funds in isolation.
Whichever of SCHD and ZROZ 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 ZROZ?
SCHD has an expense ratio of 0.06% while ZROZ charges 0.15%. SCHD is the cheaper option, by $9 a year on a $10,000 investment.
Which performed better, SCHD or ZROZ?
Over the past year SCHD returned +27.61% vs -12.05% for ZROZ, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.36% vs -2.47% for ZROZ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or ZROZ?
ZROZ has been the more volatile fund at 20.0% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs ZROZ -63.7%.
Should I hold both SCHD and ZROZ?
SCHD and ZROZ have a monthly-return correlation of 0.01, 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 ZROZ?
SCHD yields 3.00% while ZROZ yields 5.53%, so ZROZ currently pays the higher dividend yield.
Is ZROZ better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.