SCHO vs. BND
SCHO (Schwab Short-Term U.S. Treasury ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - SCHO is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index, while BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. Both are passively managed. Over the past 10 years, SCHO returned 1.69%/yr vs 1.53%/yr for BND. A 0.69 correlation means they provide meaningful diversification when combined. Both charge a 0.03% expense ratio.
Performance
SCHO vs. BND - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, SCHO achieves a 0.33% return, which is significantly higher than BND's -0.07% return. Over the past 10 years, SCHO has outperformed BND with an annualized return of 1.69%, while BND has yielded a comparatively lower 1.53% annualized return.
SCHO
- 1D
- 0.04%
- 1M
- -0.23%
- YTD
- 0.33%
- 6M
- 0.82%
- 1Y
- 3.43%
- 3Y*
- 4.15%
- 5Y*
- 1.78%
- 10Y*
- 1.69%
BND
- 1D
- -0.03%
- 1M
- -0.67%
- YTD
- -0.07%
- 6M
- 0.23%
- 1Y
- 4.87%
- 3Y*
- 3.89%
- 5Y*
- -0.05%
- 10Y*
- 1.53%
SCHO vs. BND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SCHO Schwab Short-Term U.S. Treasury ETF | 0.33% | 5.49% | 3.65% | 4.31% | -3.87% | -0.64% | 3.11% | 3.47% | 1.37% | 0.33% |
BND Vanguard Total Bond Market ETF | -0.07% | 7.08% | 1.38% | 5.65% | -13.11% | -1.86% | 7.71% | 8.84% | -0.12% | 3.57% |
Correlation
The correlation between SCHO and BND is 0.75, 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 | 0.75 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.78 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.78 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.72 |
Correlation (All Time) Calculated using the full available price history since Aug 6, 2010 | 0.69 |
The correlation between SCHO and BND has been stable across timeframes, ranging from 0.69 to 0.78 - a consistent structural relationship.
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
SCHO vs. BND — Risk / Return Rank
SCHO
BND
SCHO vs. BND - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Short-Term U.S. Treasury ETF (SCHO) and Vanguard Total Bond Market ETF (BND). 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.
| SCHO | BND | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.20 | ||
| Sortino ratioReturn per unit of downside risk | +2.15 | ||
| Omega ratioGain probability vs. loss probability | 1.51 | 1.23 | +0.28 |
| Calmar ratioReturn relative to maximum drawdown | 4.01 | 1.83 | +2.18 |
| Martin ratioReturn relative to average drawdown | 17.08 | 5.43 | +11.65 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| SCHO | BND | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.52 | 1.32 | +1.20 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.90 | -0.01 | +0.91 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.09 | 0.28 | +0.81 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.99 | 0.58 | +0.41 |
Drawdowns
SCHO vs. BND - Drawdown Comparison
The maximum SCHO drawdown since its inception was -5.69%, smaller than the maximum BND drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for SCHO and BND.
Loading charts...
Drawdown Indicators
| SCHO | BND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.69% | -18.58% | +12.89% |
Max Drawdown (1Y)Largest decline over 1 year | -0.86% | -2.68% | +1.82% |
Max Drawdown (3Y)Largest decline over 3 years | -0.98% | -5.92% | +4.94% |
Max Drawdown (5Y)Largest decline over 5 years | -5.69% | -17.91% | +12.22% |
Max Drawdown (10Y)Largest decline over 10 years | -5.69% | -18.58% | +12.89% |
Current DrawdownCurrent decline from peak | -0.35% | -2.70% | +2.35% |
Average DrawdownAverage peak-to-trough decline | -0.61% | -3.06% | +2.45% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.20% | 0.90% | -0.70% |
Volatility
SCHO vs. BND - Volatility Comparison
The current volatility for Schwab Short-Term U.S. Treasury ETF (SCHO) is 0.44%, while Vanguard Total Bond Market ETF (BND) has a volatility of 1.20%. This indicates that SCHO experiences smaller price fluctuations and is considered to be less risky than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| SCHO | BND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.44% | 1.20% | -0.76% |
Volatility (6M)Calculated over the trailing 6-month period | 0.93% | 2.69% | -1.76% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.37% | 3.72% | -2.35% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.98% | 6.02% | -4.04% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.56% | 5.53% | -3.97% |
SCHO vs. BND - Expense Ratio Comparison
Both SCHO and BND have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
SCHO vs. BND - Dividend Comparison
SCHO's dividend yield for the trailing twelve months is around 3.91%, less than BND's 3.98% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 3.98% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
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
SCHO and BND have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BND has higher volatility (1.20%) compared to SCHO (0.44%). In terms of maximum drawdown, SCHO dropped -5.69% vs BND's -18.58%.
On 10-year performance, SCHO leads with 1.69% vs 1.53% for BND. Both ETFs have the same 0.03% expense ratio. On volatility, SCHO has been the lower-risk option at 0.44%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SCHO has performed better with a 1.69% return vs 1.53%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SCHO and BND have the same expense ratio: 0.03% per year.
BND has the higher dividend yield at 3.98%, compared with 3.91% for SCHO.
SCHO is categorized as Government Bonds, while BND is Total Bond Market. SCHO tracks Bloomberg U.S. Treasury 1-3 Year Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index. They also come from different issuers: Charles Schwab and Vanguard.
SCHO currently has the higher Sharpe Ratio (2.52 vs 1.32), 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 SCHO and BND
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