KBWB vs. SCHD

Last updated Aug 2, 2026

KBWB (Invesco KBW Bank ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - KBWB is a Financials Equities fund tracking the KBW Nasdaq Bank Index, while SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. Both are passively managed. Over the past 10 years, KBWB returned 13.69%/yr vs 12.76%/yr for SCHD. Their 0.70 correlation means they have sometimes moved together and sometimes differently. KBWB charges 0.35%/yr vs 0.06%/yr for SCHD.

Performance

KBWB vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco KBW Bank ETF (KBWB) and Schwab U.S. Dividend Equity ETF (SCHD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KBWB achieves a 15.29% return, which is significantly lower than SCHD's 24.03% return. Over the past 10 years, KBWB has outperformed SCHD with an annualized return of 13.69%, while SCHD has yielded a comparatively lower 12.76% annualized return.

KBWB

• 1D: 0.20%
• 1M: 1.73%
• 6M: 12.74%
• YTD: 15.29%
• 1Y: 36.87%
• 3Y*: 31.95%
• 5Y*: 11.96%
• 10Y*: 13.69%
• ALL TIME*: 13.87%

SCHD

• 1D: 0.18%
• 1M: 3.33%
• 6M: 14.09%
• YTD: 24.03%
• 1Y: 31.54%
• 3Y*: 14.19%
• 5Y*: 9.54%
• 10Y*: 12.76%
• ALL TIME*: 13.39%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
KBWB Invesco KBW Bank ETF	$147.63M	$184.17M	$155.76M
SCHD Schwab U.S. Dividend Equity ETF	$786.88M	$715.86M	$685.58M

KBWB vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
KBWB Invesco KBW Bank ETF	15.29%	32.05%	36.73%	-1.18%	-21.68%	37.72%	-10.46%	35.90%	-18.30%	18.11%
SCHD Schwab U.S. Dividend Equity ETF	24.03%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	20.85%

Correlation

The correlation between KBWB and SCHD is 0.43, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.43
Correlation (3Y) Balances recent behavior with more history.	0.62
Correlation (5Y) Shows whether the relationship held over a longer period.	0.71
Correlation (10Y) Provides a long-term view across more market conditions.	0.70
Correlation (All Time) Calculated using the full available price history since Nov 1, 2011	0.70

Over the past year, the correlation between KBWB and SCHD has dropped to 0.43 - well below their long-term average of 0.70, suggesting their price drivers have been diverging.

KBWB vs. SCHD - Sectors Allocation Comparison

Sectors	KBWB	SCHD
Financial Services	100.0%	9.9%
Basic Materials	-	1.2%
Communication Services	-	6.2%
Consumer Cyclical	-	7.7%
Consumer Defensive	-	20.6%
Energy	-	14.1%
Healthcare	-	20.8%
Industrials	-	7.8%
Real Estate	-	-
Technology	-	12.7%
Utilities	-	0.1%

Return for Risk

KBWB vs. SCHD — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

KBWB

KBWB Risk / Return Rank: 65
KBWB Sharpe Ratio Rank: 73
KBWB Sortino Ratio Rank: 67
KBWB Omega Ratio Rank: 69
KBWB Calmar Ratio Rank: 59
KBWB Martin Ratio Rank: 55

SCHD

SCHD Risk / Return Rank: 95
SCHD Sharpe Ratio Rank: 96
SCHD Sortino Ratio Rank: 96
SCHD Omega Ratio Rank: 94
SCHD Calmar Ratio Rank: 96
SCHD Martin Ratio Rank: 93

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

KBWB vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco KBW Bank ETF (KBWB) and Schwab U.S. Dividend Equity ETF (SCHD). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	KBWB	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	1.64	2.81	-1.17
Sortino ratio: Return per unit of downside risk	2.20	4.37	-2.17
Omega ratio: Gain probability vs. loss probability	1.29	1.51	-0.22
Calmar ratio: Return relative to maximum drawdown	2.06	6.74	-4.67
Martin ratio: Return relative to average drawdown	6.52	17.01	-10.50

KBWB vs. SCHD - Sharpe Ratio Comparison

The current KBWB Sharpe Ratio is 1.64, which is lower than the SCHD Sharpe Ratio of 2.81. The chart below compares the historical Sharpe Ratios of KBWB and SCHD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

KBWB vs. SCHD - Drawdown Comparison

The maximum KBWB drawdown since its inception was -50.27%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for KBWB and SCHD.

Drawdown Indicators

	KBWB	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-50.27%	-33.37%	-16.90%
Max Drawdown (1Y) Largest decline over 1 year	-16.38%	-4.61%	-11.77%
Max Drawdown (3Y) Largest decline over 3 years	-25.43%	-16.13%	-9.30%
Max Drawdown (5Y) Largest decline over 5 years	-49.31%	-16.85%	-32.46%
Max Drawdown (10Y) Largest decline over 10 years	-50.27%	-33.37%	-16.90%
Current Drawdown Current decline from peak	-2.41%	-1.24%	-1.17%
Average Drawdown Average peak-to-trough decline	-11.62%	-3.30%	-8.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.18%	1.82%	+3.36%

Volatility

KBWB vs. SCHD - Volatility Comparison

Invesco KBW Bank ETF (KBWB) has a higher volatility of 5.81% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 4.11%. This indicates that KBWB's price experiences larger fluctuations and is considered to be riskier than SCHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KBWB	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.81%	4.11%	+1.70%
Volatility (6M) Calculated over the trailing 6-month period	15.94%	8.11%	+7.83%
Volatility (1Y) Calculated over the trailing 1-year period	20.60%	11.13%	+9.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.39%	14.39%	+12.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.06%	16.72%	+12.34%

KBWB vs. SCHD - Expense Ratio Comparison

KBWB has a 0.35% expense ratio, which is higher than SCHD's 0.06% expense ratio.

Dividends

KBWB vs. SCHD - Dividend Comparison

KBWB's dividend yield for the trailing twelve months is around 1.93%, less than SCHD's 3.13% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KBWB Invesco KBW Bank ETF	1.93%	2.04%	2.46%	3.20%	3.05%	2.13%	2.62%	2.38%	2.54%	1.35%	1.53%	1.53%
SCHD Schwab U.S. Dividend Equity ETF	3.13%	3.82%	3.64%	3.49%	3.39%	2.78%	3.16%	2.98%	3.06%	2.63%	2.89%	2.97%

Frequently Asked Questions

Can I hold both KBWB and SCHD in my portfolio?

KBWB and SCHD have a correlation of 0.43, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KBWB or SCHD?

KBWB has higher volatility (5.81%) compared to SCHD (4.11%). In terms of maximum drawdown, KBWB dropped -50.27% vs SCHD's -33.37%.

Which ETF is better, KBWB or SCHD?

On 10-year performance, KBWB leads with 13.69% vs 12.76% for SCHD. On fees, SCHD is cheaper at 0.06% per year. On volatility, SCHD has been the lower-risk option at 4.11%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KBWB or SCHD?

Over the 10-year period, KBWB has performed better with a 13.69% return vs 12.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KBWB or SCHD?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.35% for KBWB.

Which ETF pays a higher dividend yield, KBWB or SCHD?

SCHD has the higher dividend yield at 3.13%, compared with 1.93% for KBWB.

What is the main difference between KBWB and SCHD?

KBWB is categorized as Financials Equities, while SCHD is Dividend. KBWB tracks KBW Nasdaq Bank Index, while SCHD tracks Dow Jones U.S. Dividend 100 Index. They also come from different issuers: Invesco and Charles Schwab. Their fees differ too: 0.35% for KBWB and 0.06% for SCHD.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.81 vs 1.64), 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.