SCHO vs. BNDD

Last updated Aug 4, 2026

SCHO (Schwab Short-Term U.S. Treasury ETF) and BNDD (Quadratic Deflation ETF) are both Government Bonds funds. SCHO is passively managed, while BNDD is actively managed. Over the past 3 years, SCHO returned 4.23%/yr vs -3.71%/yr for BNDD. Their 0.14 correlation means their historical movements had little consistent relationship. SCHO charges 0.03%/yr vs 1.02%/yr for BNDD.

Performance

SCHO vs. BNDD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Short-Term U.S. Treasury ETF (SCHO) and Quadratic Deflation ETF (BNDD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCHO achieves a 0.83% return, which is significantly lower than BNDD's 2.42% return.

SCHO

• 1D: 0.05%
• 1M: 0.09%
• 6M: 0.68%
• YTD: 0.83%
• 1Y: 2.67%
• 3Y*: 4.23%
• 5Y*: 1.88%
• 10Y*: 1.73%
• ALL TIME*: 1.35%

BNDD

• 1D: 0.26%
• 1M: -3.90%
• 6M: 1.87%
• YTD: 2.42%
• 1Y: 1.48%
• 3Y*: -3.71%
• 5Y*: —
• 10Y*: —
• ALL TIME*: -4.58%

*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)
BNDD Quadratic Deflation ETF	$1.98M	$4.75M	$3.15M
SCHO Schwab Short-Term U.S. Treasury ETF	$59.21M	$61.33M	$83.92M

SCHO vs. BNDD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
SCHO Schwab Short-Term U.S. Treasury ETF	0.83%	5.49%	3.65%	4.31%	-3.87%	-0.66%
BNDD Quadratic Deflation ETF	2.42%	-8.17%	-6.65%	4.02%	-17.48%	5.63%

Correlation

The correlation between SCHO and BNDD is 0.05, meaning there was essentially no consistent relationship between their historical price movements. Each responded to its own set of market drivers.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.05
Correlation (3Y) Balances recent behavior with more history.	0.11
Correlation (All Time) Calculated using the full available price history since Sep 21, 2021	0.14

Return for Risk

SCHO vs. BNDD — Risk / Return Rank

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

SCHO

SCHO Risk / Return Rank: 86
SCHO Sharpe Ratio Rank: 85
SCHO Sortino Ratio Rank: 88
SCHO Omega Ratio Rank: 86
SCHO Calmar Ratio Rank: 83
SCHO Martin Ratio Rank: 87

BNDD

BNDD Risk / Return Rank: 14
BNDD Sharpe Ratio Rank: 14
BNDD Sortino Ratio Rank: 13
BNDD Omega Ratio Rank: 13
BNDD Calmar Ratio Rank: 15
BNDD Martin Ratio Rank: 15

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.

SCHO vs. BNDD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Short-Term U.S. Treasury ETF (SCHO) and Quadratic Deflation ETF (BNDD). 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.

	SCHO	BNDD	Difference
Sharpe ratio: Return per unit of total volatility	2.03	0.14	+1.89
Sortino ratio: Return per unit of downside risk	3.05	0.28	+2.78
Omega ratio: Gain probability vs. loss probability	1.38	1.03	+0.35
Calmar ratio: Return relative to maximum drawdown	3.13	0.24	+2.88
Martin ratio: Return relative to average drawdown	13.09	0.51	+12.58

SCHO vs. BNDD - Sharpe Ratio Comparison

The current SCHO Sharpe Ratio is 2.03, which is higher than the BNDD Sharpe Ratio of 0.14. The chart below compares the historical Sharpe Ratios of SCHO and BNDD, 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

SCHO vs. BNDD - Drawdown Comparison

The maximum SCHO drawdown since its inception was -5.69%, smaller than the maximum BNDD drawdown of -30.87%. Use the drawdown chart below to compare losses from any high point for SCHO and BNDD.

Drawdown Indicators

	SCHO	BNDD	Difference
Max Drawdown Largest peak-to-trough decline	-5.69%	-30.87%	+25.18%
Max Drawdown (1Y) Largest decline over 1 year	-0.86%	-6.09%	+5.23%
Max Drawdown (3Y) Largest decline over 3 years	-0.98%	-17.70%	+16.72%
Max Drawdown (5Y) Largest decline over 5 years	-5.64%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-5.69%	—	—
Current Drawdown Current decline from peak	0.00%	-27.84%	+27.84%
Average Drawdown Average peak-to-trough decline	-0.61%	-19.54%	+18.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.20%	2.89%	-2.69%

Volatility

SCHO vs. BNDD - Volatility Comparison

The current volatility for Schwab Short-Term U.S. Treasury ETF (SCHO) is 0.33%, while Quadratic Deflation ETF (BNDD) has a volatility of 2.63%. This indicates that SCHO experiences smaller price fluctuations and is considered to be less risky than BNDD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHO	BNDD	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.33%	2.63%	-2.30%
Volatility (6M) Calculated over the trailing 6-month period	1.03%	6.90%	-5.87%
Volatility (1Y) Calculated over the trailing 1-year period	1.32%	10.28%	-8.96%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.00%	13.26%	-11.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.57%	13.26%	-11.69%

SCHO vs. BNDD - Expense Ratio Comparison

SCHO has a 0.03% expense ratio, which is lower than BNDD's 1.02% expense ratio.

Dividends

SCHO vs. BNDD - Dividend Comparison

SCHO's dividend yield for the trailing twelve months is around 3.88%, more than BNDD's 3.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BNDD Quadratic Deflation ETF	3.69%	3.82%	3.85%	4.30%	43.17%	1.04%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SCHO Schwab Short-Term U.S. Treasury ETF	3.88%	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

Can I hold both SCHO and BNDD in my portfolio?

SCHO and BNDD have a correlation of 0.05, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCHO or BNDD?

BNDD has higher volatility (2.63%) compared to SCHO (0.33%). In terms of maximum drawdown, SCHO dropped -5.69% vs BNDD's -30.87%.

Which ETF is better, SCHO or BNDD?

On 3-year performance, SCHO leads with 4.23% vs -3.71% for BNDD. On fees, SCHO is cheaper at 0.03% per year. On volatility, SCHO has been the lower-risk option at 0.33%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHO or BNDD?

Over the 3-year period, SCHO has performed better with a 4.23% return vs -3.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHO or BNDD?

SCHO is cheaper with a 0.03% expense ratio, compared with 1.02% for BNDD.

Which ETF pays a higher dividend yield, SCHO or BNDD?

SCHO has the higher dividend yield at 3.88%, compared with 3.69% for BNDD.

What is the main difference between SCHO and BNDD?

They also come from different issuers: Charles Schwab and KraneShares. Their fees differ too: 0.03% for SCHO and 1.02% for BNDD.

Which has better risk-adjusted returns?

SCHO currently has the higher Sharpe Ratio (2.03 vs 0.14), 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.