SCHI vs. SCHQ
Compare and contrast key facts about Schwab 5-10 Year Corporate Bond ETF (SCHI) and Schwab Long-Term U.S. Treasury ETF (SCHQ).
SCHI and SCHQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SCHI is a passively managed fund by Charles Schwab that tracks the performance of the Bloomberg US Aggregate Credit - Corporate (5-10 Y). It was launched on Oct 10, 2019. SCHQ is a passively managed fund by Charles Schwab that tracks the performance of the Bloomberg US Aggregate Government - Treasury - Long. It was launched on Oct 10, 2019. Both SCHI and SCHQ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: SCHI or SCHQ.
Key characteristics
| SCHI | SCHQ | |
|---|---|---|
| YTD Return | -0.18% | -4.88% |
| 1Y Return | 5.09% | -5.77% |
| 3Y Return (Ann) | -1.93% | -9.00% |
| Sharpe Ratio | 0.72 | -0.39 |
| Daily Std Dev | 6.98% | 15.08% |
| Max Drawdown | -20.67% | -46.13% |
| Current Drawdown | -8.39% | -38.85% |
Correlation
The correlation between SCHI and SCHQ is 0.73, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
SCHI vs. SCHQ - Performance Comparison
In the year-to-date period, SCHI achieves a -0.18% return, which is significantly higher than SCHQ's -4.88% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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SCHI vs. SCHQ - Expense Ratio Comparison
Both SCHI and SCHQ have an expense ratio of 0.05%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Risk-Adjusted Performance
SCHI vs. SCHQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab 5-10 Year Corporate Bond ETF (SCHI) and Schwab Long-Term U.S. Treasury ETF (SCHQ). 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.
Dividends
SCHI vs. SCHQ - Dividend Comparison
SCHI's dividend yield for the trailing twelve months is around 5.02%, more than SCHQ's 4.19% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|
SCHI Schwab 5-10 Year Corporate Bond ETF | 5.02% | 4.27% | 3.10% | 1.93% | 2.31% | 0.53% |
SCHQ Schwab Long-Term U.S. Treasury ETF | 4.19% | 3.79% | 2.88% | 1.69% | 1.51% | 0.44% |
Drawdowns
SCHI vs. SCHQ - Drawdown Comparison
The maximum SCHI drawdown since its inception was -20.67%, smaller than the maximum SCHQ drawdown of -46.13%. Use the drawdown chart below to compare losses from any high point for SCHI and SCHQ. For additional features, visit the drawdowns tool.
Volatility
SCHI vs. SCHQ - Volatility Comparison
The current volatility for Schwab 5-10 Year Corporate Bond ETF (SCHI) is 1.47%, while Schwab Long-Term U.S. Treasury ETF (SCHQ) has a volatility of 2.65%. This indicates that SCHI experiences smaller price fluctuations and is considered to be less risky than SCHQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.