AGZ vs. SCHO
AGZ (iShares Agency Bond ETF) and SCHO (Schwab Short-Term U.S. Treasury ETF) are both Government Bonds funds - AGZ tracks the Bloomberg U.S. Agency Bond Index (USD) while SCHO tracks the Bloomberg U.S. Treasury 1-3 Year Index. Both are passively managed. Over the past 10 years, AGZ returned 1.83%/yr vs 1.71%/yr for SCHO. A 0.65 correlation means they provide meaningful diversification when combined. AGZ charges 0.20%/yr vs 0.03%/yr for SCHO.
Performance
AGZ vs. SCHO - Performance Comparison
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Returns By Period
In the year-to-date period, AGZ achieves a 0.16% return, which is significantly lower than SCHO's 0.42% return. Over the past 10 years, AGZ has outperformed SCHO with an annualized return of 1.83%, while SCHO has yielded a comparatively lower 1.71% annualized return.
AGZ
- 1D
- -0.13%
- 1M
- -0.03%
- YTD
- 0.16%
- 6M
- 0.29%
- 1Y
- 3.95%
- 3Y*
- 4.10%
- 5Y*
- 1.15%
- 10Y*
- 1.83%
SCHO
- 1D
- -0.04%
- 1M
- 0.06%
- YTD
- 0.42%
- 6M
- 0.78%
- 1Y
- 3.39%
- 3Y*
- 4.15%
- 5Y*
- 1.80%
- 10Y*
- 1.71%
AGZ vs. SCHO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
AGZ iShares Agency Bond ETF | 0.16% | 6.05% | 3.08% | 5.18% | -7.77% | -1.05% | 5.77% | 5.51% | 1.32% | 2.01% |
SCHO Schwab Short-Term U.S. Treasury ETF | 0.42% | 5.49% | 3.65% | 4.31% | -3.87% | -0.64% | 3.11% | 3.47% | 1.37% | 0.33% |
Correlation
The correlation between AGZ and SCHO is 0.64, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.64 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.78 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.80 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.73 |
Correlation (All Time) Calculated using the full available price history since Aug 6, 2010 | 0.65 |
The correlation between AGZ and SCHO shifts across timeframes, from 0.64 (1 year) to 0.80 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
AGZ vs. SCHO — Risk / Return Rank
AGZ
SCHO
AGZ vs. SCHO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Agency Bond ETF (AGZ) and Schwab Short-Term U.S. Treasury ETF (SCHO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| AGZ | SCHO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.94 | ||
| Sortino ratioReturn per unit of downside risk | -1.73 | ||
| Omega ratioGain probability vs. loss probability | 1.28 | 1.50 | -0.22 |
| Calmar ratioReturn relative to maximum drawdown | 2.93 | 3.96 | -1.03 |
| Martin ratioReturn relative to average drawdown | 9.76 | 17.03 | -7.26 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| AGZ | SCHO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.54 | 2.48 | -0.94 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.33 | 0.91 | -0.59 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.60 | 1.10 | -0.50 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.68 | 0.99 | -0.31 |
Drawdowns
AGZ vs. SCHO - Drawdown Comparison
The maximum AGZ drawdown since its inception was -11.01%, which is greater than SCHO's maximum drawdown of -5.69%. Use the drawdown chart below to compare losses from any high point for AGZ and SCHO.
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Drawdown Indicators
| AGZ | SCHO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -11.01% | -5.69% | -5.32% |
Max Drawdown (1Y)Largest decline over 1 year | -1.35% | -0.86% | -0.49% |
Max Drawdown (3Y)Largest decline over 3 years | -1.85% | -0.98% | -0.87% |
Max Drawdown (5Y)Largest decline over 5 years | -10.66% | -5.69% | -4.97% |
Max Drawdown (10Y)Largest decline over 10 years | -11.01% | -5.69% | -5.32% |
Current DrawdownCurrent decline from peak | -0.78% | -0.27% | -0.51% |
Average DrawdownAverage peak-to-trough decline | -1.61% | -0.61% | -1.00% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.41% | 0.20% | +0.21% |
Volatility
AGZ vs. SCHO - Volatility Comparison
iShares Agency Bond ETF (AGZ) has a higher volatility of 0.76% compared to Schwab Short-Term U.S. Treasury ETF (SCHO) at 0.41%. This indicates that AGZ's price experiences larger fluctuations and is considered to be riskier than SCHO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AGZ | SCHO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.76% | 0.41% | +0.35% |
Volatility (6M)Calculated over the trailing 6-month period | 1.93% | 0.90% | +1.03% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.58% | 1.37% | +1.21% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.54% | 1.98% | +1.56% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.03% | 1.56% | +1.47% |
AGZ vs. SCHO - Expense Ratio Comparison
AGZ has a 0.20% expense ratio, which is higher than SCHO's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
AGZ vs. SCHO - Dividend Comparison
AGZ's dividend yield for the trailing twelve months is around 3.73%, less than SCHO's 3.91% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AGZ iShares Agency Bond ETF | 3.73% | 3.75% | 3.48% | 3.14% | 1.56% | 0.96% | 2.25% | 2.32% | 2.15% | 1.58% | 1.52% | 1.30% |
SCHO Schwab Short-Term U.S. Treasury ETF | 3.91% | 4.06% | 4.29% | 3.76% | 1.34% | 0.41% | 1.27% | 2.27% | 1.60% | 1.12% | 0.82% | 0.68% |
Frequently Asked Questions
AGZ and SCHO have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
AGZ has higher volatility (0.76%) compared to SCHO (0.41%). In terms of maximum drawdown, AGZ dropped -11.01% vs SCHO's -5.69%.
On 10-year performance, AGZ leads with 1.83% vs 1.71% for SCHO. On fees, SCHO is cheaper at 0.03% per year. On volatility, SCHO has been the lower-risk option at 0.41%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, AGZ has performed better with a 1.83% return vs 1.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SCHO is cheaper with a 0.03% expense ratio, compared with 0.20% for AGZ.
SCHO has the higher dividend yield at 3.91%, compared with 3.73% for AGZ.
AGZ tracks Bloomberg U.S. Agency Bond Index (USD), while SCHO tracks Bloomberg U.S. Treasury 1-3 Year Index. They also come from different issuers: iShares and Charles Schwab. Their fees differ too: 0.20% for AGZ and 0.03% for SCHO.
SCHO currently has the higher Sharpe Ratio (2.48 vs 1.54), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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