SCHO vs. BSBIX

Last updated Jun 5, 2026

SCHO (Schwab Short-Term U.S. Treasury ETF) and BSBIX (Baird Short-Term Bond Fund Institutional Class) are both funds - SCHO is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index, while BSBIX is a Short-Term Bond fund tracking the Bloomberg Barclays 1-3 Year U.S. Government/Credit Bond Index. Both are passively managed. Over the past 10 years, SCHO returned 1.72%/yr vs 2.48%/yr for BSBIX. A 0.69 correlation means they provide meaningful diversification when combined. SCHO charges 0.03%/yr vs 0.30%/yr for BSBIX.

Performance

SCHO vs. BSBIX - Performance Comparison

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

Returns By Period

In the year-to-date period, SCHO achieves a 0.50% return, which is significantly lower than BSBIX's 0.73% return. Over the past 10 years, SCHO has underperformed BSBIX with an annualized return of 1.72%, while BSBIX has yielded a comparatively higher 2.48% annualized return.

SCHO

• 1D: 0.08%
• 1M: 0.10%
• YTD: 0.50%
• 6M: 0.90%
• 1Y: 3.35%
• 3Y*: 4.16%
• 5Y*: 1.82%
• 10Y*: 1.72%

BSBIX

• 1D: -0.11%
• 1M: 0.15%
• YTD: 0.73%
• 6M: 1.06%
• 1Y: 3.89%
• 3Y*: 5.10%
• 5Y*: 2.49%
• 10Y*: 2.48%

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

SCHO vs. BSBIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHO Schwab Short-Term U.S. Treasury ETF	0.50%	5.49%	3.65%	4.31%	-3.87%	-0.64%	3.11%	3.47%	1.37%	0.33%
BSBIX Baird Short-Term Bond Fund Institutional Class	0.73%	5.67%	4.99%	5.65%	-3.64%	-0.42%	4.23%	4.68%	1.49%	1.53%

Correlation

The correlation between SCHO and BSBIX is 0.69, 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	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.79
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (10Y) Calculated over the trailing 10-year period	0.74
Correlation (All Time) Calculated using the full available price history since Aug 6, 2010	0.69

The correlation between SCHO and BSBIX shifts across timeframes, from 0.69 (all time) to 0.83 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

SCHO vs. BSBIX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SCHO

SCHO Risk / Return Rank: 82
SCHO Sharpe Ratio Rank: 77
SCHO Sortino Ratio Rank: 89
SCHO Omega Ratio Rank: 83
SCHO Calmar Ratio Rank: 78
SCHO Martin Ratio Rank: 83

BSBIX

BSBIX Risk / Return Rank: 92
BSBIX Sharpe Ratio Rank: 91
BSBIX Sortino Ratio Rank: 94
BSBIX Omega Ratio Rank: 96
BSBIX Calmar Ratio Rank: 88
BSBIX Martin Ratio Rank: 91

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

SCHO vs. BSBIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Short-Term U.S. Treasury ETF (SCHO) and Baird Short-Term Bond Fund Institutional Class (BSBIX). 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	BSBIX	Difference
Sharpe ratio: Return per unit of total volatility	2.46	3.07	-0.62
Sortino ratio: Return per unit of downside risk	4.01	4.92	-0.91
Omega ratio: Gain probability vs. loss probability	1.49	1.82	-0.33
Calmar ratio: Return relative to maximum drawdown	3.91	4.28	-0.37
Martin ratio: Return relative to average drawdown	16.82	18.62	-1.79
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SCHO vs. BSBIX - Sharpe Ratio Comparison

The current SCHO Sharpe Ratio is 2.46, which is comparable to the BSBIX Sharpe Ratio of 3.07. The chart below compares the historical Sharpe Ratios of SCHO and BSBIX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	SCHO	BSBIX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.46	3.07	-0.62
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.92	1.29	-0.36
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.11	1.49	-0.39
Sharpe Ratio (All Time) Calculated using the full available price history	1.00	1.64	-0.64

Drawdowns

SCHO vs. BSBIX - Drawdown Comparison

The maximum SCHO drawdown since its inception was -5.69%, roughly equal to the maximum BSBIX drawdown of -5.95%. Use the drawdown chart below to compare losses from any high point for SCHO and BSBIX.

Drawdown Indicators

	SCHO	BSBIX	Difference
Max Drawdown Largest peak-to-trough decline	-5.69%	-5.95%	+0.26%
Max Drawdown (1Y) Largest decline over 1 year	-0.86%	-0.94%	+0.08%
Max Drawdown (3Y) Largest decline over 3 years	-0.98%	-0.94%	-0.04%
Max Drawdown (5Y) Largest decline over 5 years	-5.69%	-5.95%	+0.26%
Max Drawdown (10Y) Largest decline over 10 years	-5.69%	-5.95%	+0.26%
Current Drawdown Current decline from peak	-0.18%	-0.13%	-0.05%
Average Drawdown Average peak-to-trough decline	-0.61%	-0.55%	-0.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.20%	0.22%	-0.02%

Volatility

SCHO vs. BSBIX - Volatility Comparison

Schwab Short-Term U.S. Treasury ETF (SCHO) and Baird Short-Term Bond Fund Institutional Class (BSBIX) have volatilities of 0.42% and 0.42%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHO	BSBIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.42%	0.42%	0.00%
Volatility (6M) Calculated over the trailing 6-month period	0.91%	0.98%	-0.07%
Volatility (1Y) Calculated over the trailing 1-year period	1.37%	1.31%	+0.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.98%	1.94%	+0.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.56%	1.67%	-0.11%

SCHO vs. BSBIX - Expense Ratio Comparison

SCHO has a 0.03% expense ratio, which is lower than BSBIX's 0.30% expense ratio.

Dividends

SCHO vs. BSBIX - Dividend Comparison

SCHO's dividend yield for the trailing twelve months is around 3.90%, less than BSBIX's 4.27% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BSBIX Baird Short-Term Bond Fund Institutional Class	4.27%	4.35%	4.34%	3.41%	1.79%	1.42%	2.61%	2.49%	2.20%	1.73%	1.60%	1.62%
SCHO Schwab Short-Term U.S. Treasury ETF	3.90%	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 BSBIX in my portfolio?

SCHO and BSBIX have a correlation of 0.69, 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 BSBIX?

BSBIX has higher volatility (0.42%) compared to SCHO (0.42%). In terms of maximum drawdown, SCHO dropped -5.69% vs BSBIX's -5.95%.

Which has better risk-adjusted returns?

BSBIX currently has the higher Sharpe Ratio (3.07 vs 2.46), 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.