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ISTB vs. SCHO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

ISTB vs. SCHO

Last updated Jun 4, 2026

ISTB (iShares Core 1-5 Year USD Bond ETF) and SCHO (Schwab Short-Term U.S. Treasury ETF) are both exchange-traded funds - ISTB is a Short-Term Bond fund tracking the BBG US Universal 1-5 Year Index (USD), while SCHO is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index. Both are passively managed. Over the past 10 years, ISTB returned 2.27%/yr vs 1.71%/yr for SCHO. A 0.68 correlation means they provide meaningful diversification when combined. ISTB charges 0.06%/yr vs 0.03%/yr for SCHO.

Performance

ISTB vs. SCHO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Core 1-5 Year USD Bond ETF (ISTB) and Schwab Short-Term U.S. Treasury ETF (SCHO). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, ISTB achieves a 0.49% return, which is significantly higher than SCHO's 0.42% return. Over the past 10 years, ISTB has outperformed SCHO with an annualized return of 2.27%, while SCHO has yielded a comparatively lower 1.71% annualized return.

ISTB

1D
-0.08%
1M
0.15%
YTD
0.49%
6M
0.71%
1Y
4.19%
3Y*
4.95%
5Y*
1.85%
10Y*
2.27%

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%
*Multi-year figures are annualized to reflect compound growth (CAGR)

ISTB vs. SCHO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
ISTB
iShares Core 1-5 Year USD Bond ETF		0.49%6.36%4.37%5.56%-6.08%-0.71%4.75%5.61%1.02%1.72%
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 ISTB and SCHO is 0.85, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.85

Correlation (3Y)
Calculated over the trailing 3-year period

0.88

Correlation (5Y)
Calculated over the trailing 5-year period

0.89

Correlation (10Y)
Calculated over the trailing 10-year period

0.75

Correlation (All Time)
Calculated using the full available price history since Oct 25, 2012

0.68

The correlation between ISTB and SCHO shifts across timeframes, from 0.68 (all time) to 0.89 (5 years), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares Core 1-5 Year USD Bond ETF

Schwab Short-Term U.S. Treasury ETF

Often compared with ISTB:
ISTB vs. BSVISTB vs. AGGISTB vs. FUMBXISTB vs. IMTBISTB vs. SHYISTB vs. IAGGISTB vs. FIBR
Often compared with SCHO:
SCHO vs. SGOVSCHO vs. VGSHSCHO vs. BSVSCHO vs. SHVSCHO vs. BILSCHO vs. SCHQSCHO vs. SPTS

Return for Risk

ISTB vs. SCHO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
ISTB
ISTB Risk / Return Rank: 7373
Overall Rank
ISTB Sharpe Ratio Rank: 7171
Sharpe Ratio Rank
ISTB Sortino Ratio Rank: 8181
Sortino Ratio Rank
ISTB Omega Ratio Rank: 7777
Omega Ratio Rank
ISTB Calmar Ratio Rank: 6767
Calmar Ratio Rank
ISTB Martin Ratio Rank: 6868
Martin Ratio Rank
SCHO
SCHO Risk / Return Rank: 8181
Overall Rank
SCHO Sharpe Ratio Rank: 7474
Sharpe Ratio Rank
SCHO Sortino Ratio Rank: 8888
Sortino Ratio Rank
SCHO Omega Ratio Rank: 8181
Omega Ratio Rank
SCHO Calmar Ratio Rank: 7777
Calmar Ratio Rank
SCHO Martin Ratio Rank: 8383
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ISTB vs. SCHO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core 1-5 Year USD Bond ETF (ISTB) 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.

ISTBSCHODifference
Sharpe ratioReturn per unit of total volatility
2.37
2.48

-0.11

Sortino ratioReturn per unit of downside risk
3.69
4.06

-0.37

Omega ratioGain probability vs. loss probability

1.46

1.50

-0.04

Calmar ratioReturn relative to maximum drawdown

3.34

3.96

-0.62

Martin ratioReturn relative to average drawdown

12.72

17.03

-4.31

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ISTB vs. SCHO - Sharpe Ratio Comparison

The current ISTB Sharpe Ratio is 2.37, which is comparable to the SCHO Sharpe Ratio of 2.48. The chart below compares the historical Sharpe Ratios of ISTB and SCHO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

ISTBSCHODifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.37

2.48

-0.11

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.67

0.91

-0.25

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.91

1.10

-0.19

Sharpe Ratio (All Time)

Calculated using the full available price history

0.84

0.99

-0.15

Drawdowns

ISTB vs. SCHO - Drawdown Comparison

The maximum ISTB drawdown since its inception was -9.34%, which is greater than SCHO's maximum drawdown of -5.69%. Use the drawdown chart below to compare losses from any high point for ISTB and SCHO.

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Drawdown Indicators

ISTBSCHODifference

Max Drawdown

Largest peak-to-trough decline

-9.34%

-5.69%

-3.65%

Max Drawdown (1Y)

Largest decline over 1 year

-1.26%

-0.86%

-0.40%

Max Drawdown (3Y)

Largest decline over 3 years

-1.36%

-0.98%

-0.38%

Max Drawdown (5Y)

Largest decline over 5 years

-9.34%

-5.69%

-3.65%

Max Drawdown (10Y)

Largest decline over 10 years

-9.34%

-5.69%

-3.65%

Current Drawdown

Current decline from peak

-0.42%

-0.27%

-0.15%

Average Drawdown

Average peak-to-trough decline

-1.22%

-0.61%

-0.61%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.33%

0.20%

+0.13%

Volatility

ISTB vs. SCHO - Volatility Comparison

iShares Core 1-5 Year USD Bond ETF (ISTB) has a higher volatility of 0.54% compared to Schwab Short-Term U.S. Treasury ETF (SCHO) at 0.41%. This indicates that ISTB'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

ISTBSCHODifference

Volatility (1M)

Calculated over the trailing 1-month period

0.54%

0.41%

+0.13%

Volatility (6M)

Calculated over the trailing 6-month period

1.28%

0.90%

+0.38%

Volatility (1Y)

Calculated over the trailing 1-year period

1.77%

1.37%

+0.40%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

2.79%

1.98%

+0.81%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

2.51%

1.56%

+0.95%

ISTB vs. SCHO - Expense Ratio Comparison

ISTB has a 0.06% 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

ISTB vs. SCHO - Dividend Comparison

ISTB's dividend yield for the trailing twelve months is around 4.25%, more than SCHO's 3.91% yield.

PositionTTM20252024202320222021202020192018201720162015
ISTB
iShares Core 1-5 Year USD Bond ETF		4.25%4.12%3.83%2.97%2.01%1.69%2.20%2.75%2.57%2.06%1.90%1.58%
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

ISTB and SCHO have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

ISTB has higher volatility (0.54%) compared to SCHO (0.41%). In terms of maximum drawdown, ISTB dropped -9.34% vs SCHO's -5.69%.

On 10-year performance, ISTB leads with 2.27% 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, ISTB has performed better with a 2.27% 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 0.06% for ISTB.

ISTB has the higher dividend yield at 4.25%, compared with 3.91% for SCHO.

ISTB is categorized as Short-Term Bond, while SCHO is Government Bonds. ISTB tracks BBG US Universal 1-5 Year 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: 0.06% for ISTB and 0.03% for SCHO.

SCHO currently has the higher Sharpe Ratio (2.48 vs 2.37), 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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