MBB vs. SCHD
MBB (iShares MBS Bond ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - MBB is a Mortgage Backed Securities fund tracking the Barclays Capital U.S. MBS 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, MBB returned 1.33%/yr vs 12.83%/yr for SCHD. At a correlation of -0.01, they often move in opposite directions. Both charge a 0.06% expense ratio.
Performance
MBB vs. SCHD - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, MBB achieves a 1.01% return, which is significantly lower than SCHD's 19.96% return. Over the past 10 years, MBB has underperformed SCHD with an annualized return of 1.33%, while SCHD has yielded a comparatively higher 12.83% annualized return.
MBB
- 1D
- 0.15%
- 1M
- 1.37%
- YTD
- 1.01%
- 6M
- 1.52%
- 1Y
- 6.57%
- 3Y*
- 4.44%
- 5Y*
- 0.52%
- 10Y*
- 1.33%
SCHD
- 1D
- -0.58%
- 1M
- 2.87%
- YTD
- 19.96%
- 6M
- 18.54%
- 1Y
- 25.99%
- 3Y*
- 14.28%
- 5Y*
- 8.90%
- 10Y*
- 12.83%
MBB vs. SCHD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MBB iShares MBS Bond ETF | 1.01% | 8.38% | 1.31% | 5.01% | -11.74% | -1.43% | 4.08% | 6.18% | 0.82% | 2.49% |
SCHD Schwab U.S. Dividend Equity ETF | 19.96% | 4.34% | 11.66% | 4.54% | -3.26% | 29.87% | 15.03% | 27.29% | -5.56% | 20.85% |
Correlation
The correlation between MBB and SCHD is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.21 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.23 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.18 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.07 |
Correlation (All Time) Calculated using the full available price history since Oct 20, 2011 | -0.01 |
The correlation between MBB and SCHD shifts across timeframes, from -0.01 (all time) to 0.23 (3 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.
Return for Risk
MBB vs. SCHD — Risk / Return Rank
MBB
SCHD
MBB vs. SCHD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MBS Bond ETF (MBB) 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.
| MBB | SCHD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.90 | ||
| Sortino ratioReturn per unit of downside risk | -1.49 | ||
| Omega ratioGain probability vs. loss probability | 1.27 | 1.43 | -0.16 |
| Calmar ratioReturn relative to maximum drawdown | 2.24 | 5.66 | -3.42 |
| Martin ratioReturn relative to average drawdown | 7.12 | 13.87 | -6.75 |
Loading charts...
Drawdowns
MBB vs. SCHD - Drawdown Comparison
The maximum MBB drawdown since its inception was -17.64%, smaller than the maximum SCHD drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for MBB and SCHD.
Loading charts...
Drawdown Indicators
| MBB | SCHD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.64% | -33.37% | +15.73% |
Max Drawdown (1Y)Largest decline over 1 year | -2.94% | -4.61% | +1.67% |
Max Drawdown (3Y)Largest decline over 3 years | -7.68% | -16.13% | +8.45% |
Max Drawdown (5Y)Largest decline over 5 years | -17.19% | -16.85% | -0.34% |
Max Drawdown (10Y)Largest decline over 10 years | -17.64% | -33.37% | +15.73% |
Current DrawdownCurrent decline from peak | -1.09% | -0.61% | -0.48% |
Average DrawdownAverage peak-to-trough decline | -2.35% | -3.31% | +0.96% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.92% | 1.88% | -0.96% |
Volatility
MBB vs. SCHD - Volatility Comparison
The current volatility for iShares MBS Bond ETF (MBB) is 1.58%, while Schwab U.S. Dividend Equity ETF (SCHD) has a volatility of 3.14%. This indicates that MBB experiences smaller price fluctuations and is considered to be less risky than SCHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| MBB | SCHD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.58% | 3.14% | -1.56% |
Volatility (6M)Calculated over the trailing 6-month period | 3.29% | 7.56% | -4.27% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.42% | 10.94% | -6.52% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.82% | 14.39% | -7.57% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.31% | 16.72% | -11.41% |
MBB vs. SCHD - Expense Ratio Comparison
Both MBB and SCHD have an expense ratio of 0.06%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
MBB vs. SCHD - Dividend Comparison
MBB's dividend yield for the trailing twelve months is around 4.26%, more than SCHD's 3.24% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MBB iShares MBS Bond ETF | 4.26% | 4.21% | 3.94% | 3.40% | 2.31% | 1.05% | 2.10% | 2.77% | 2.64% | 2.23% | 2.58% | 2.66% |
SCHD Schwab U.S. Dividend Equity ETF | 3.24% | 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
MBB and SCHD have a correlation of 0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SCHD has higher volatility (3.14%) compared to MBB (1.58%). In terms of maximum drawdown, MBB dropped -17.64% vs SCHD's -33.37%.
On 10-year performance, SCHD leads with 12.83% vs 1.33% for MBB. Both ETFs have the same 0.06% expense ratio. On volatility, MBB has been the lower-risk option at 1.58%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SCHD has performed better with a 12.83% return vs 1.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
MBB and SCHD have the same expense ratio: 0.06% per year.
MBB has the higher dividend yield at 4.26%, compared with 3.24% for SCHD.
MBB is categorized as Mortgage Backed Securities, while SCHD is Dividend. MBB tracks Barclays Capital U.S. MBS Index, while SCHD tracks Dow Jones U.S. Dividend 100 Index. They also come from different issuers: iShares and Charles Schwab.
SCHD currently has the higher Sharpe Ratio (2.39 vs 1.49), 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.
Find the right allocation for MBB and SCHD
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer