SCHO vs. SCHB
SCHO (Schwab Short-Term U.S. Treasury ETF) and SCHB (Schwab U.S. Broad Market ETF) are both exchange-traded funds - SCHO is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index, while SCHB is a Large Cap Blend Equities fund tracking the Dow Jones U.S. Broad Stock Market Index. Both are passively managed. Over the past 10 years, SCHO returned 1.72%/yr vs 15.02%/yr for SCHB. At a correlation of -0.13, they often move in opposite directions. Both charge a 0.03% expense ratio.
Performance
SCHO vs. SCHB - Performance Comparison
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Returns By Period
In the year-to-date period, SCHO achieves a 0.50% return, which is significantly lower than SCHB's 11.78% return. Over the past 10 years, SCHO has underperformed SCHB with an annualized return of 1.72%, while SCHB has yielded a comparatively higher 15.02% 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%
SCHB
- 1D
- 0.45%
- 1M
- 4.65%
- YTD
- 11.78%
- 6M
- 11.45%
- 1Y
- 28.80%
- 3Y*
- 22.39%
- 5Y*
- 12.86%
- 10Y*
- 15.02%
SCHO vs. SCHB - 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% |
SCHB Schwab U.S. Broad Market ETF | 11.78% | 16.94% | 23.93% | 26.16% | -19.46% | 25.84% | 20.76% | 30.79% | -5.43% | 21.20% |
Correlation
The correlation between SCHO and SCHB is 0.19, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.19 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.08 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.07 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.07 |
Correlation (All Time) Calculated using the full available price history since Aug 6, 2010 | -0.13 |
The correlation between SCHO and SCHB shifts across timeframes, from -0.13 (all time) to 0.19 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
SCHO vs. SCHB — Risk / Return Rank
SCHO
SCHB
SCHO vs. SCHB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Short-Term U.S. Treasury ETF (SCHO) and Schwab U.S. Broad Market ETF (SCHB). 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 | SCHB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.07 | ||
| Sortino ratioReturn per unit of downside risk | +0.76 | ||
| Omega ratioGain probability vs. loss probability | 1.49 | 1.43 | +0.06 |
| Calmar ratioReturn relative to maximum drawdown | 3.91 | 3.25 | +0.67 |
| Martin ratioReturn relative to average drawdown | 16.82 | 14.90 | +1.92 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| SCHO | SCHB | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.46 | 2.39 | +0.07 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.92 | 0.75 | +0.17 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.11 | 0.82 | +0.28 |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.00 | 0.83 | +0.16 |
Drawdowns
SCHO vs. SCHB - Drawdown Comparison
The maximum SCHO drawdown since its inception was -5.69%, smaller than the maximum SCHB drawdown of -35.27%. Use the drawdown chart below to compare losses from any high point for SCHO and SCHB.
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Drawdown Indicators
| SCHO | SCHB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.69% | -35.27% | +29.58% |
Max Drawdown (1Y)Largest decline over 1 year | -0.86% | -8.91% | +8.05% |
Max Drawdown (3Y)Largest decline over 3 years | -0.98% | -19.34% | +18.36% |
Max Drawdown (5Y)Largest decline over 5 years | -5.69% | -25.41% | +19.72% |
Max Drawdown (10Y)Largest decline over 10 years | -5.69% | -35.27% | +29.58% |
Current DrawdownCurrent decline from peak | -0.18% | -0.27% | +0.09% |
Average DrawdownAverage peak-to-trough decline | -0.61% | -4.11% | +3.50% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.20% | 1.94% | -1.74% |
Volatility
SCHO vs. SCHB - Volatility Comparison
The current volatility for Schwab Short-Term U.S. Treasury ETF (SCHO) is 0.42%, while Schwab U.S. Broad Market ETF (SCHB) has a volatility of 2.97%. This indicates that SCHO experiences smaller price fluctuations and is considered to be less risky than SCHB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SCHO | SCHB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.42% | 2.97% | -2.55% |
Volatility (6M)Calculated over the trailing 6-month period | 0.91% | 9.14% | -8.23% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.37% | 12.11% | -10.74% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.98% | 17.24% | -15.26% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.56% | 18.31% | -16.75% |
SCHO vs. SCHB - Expense Ratio Comparison
Both SCHO and SCHB 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. SCHB - Dividend Comparison
SCHO's dividend yield for the trailing twelve months is around 3.90%, more than SCHB's 1.01% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCHB Schwab U.S. Broad Market ETF | 1.01% | 1.11% | 1.24% | 1.40% | 1.61% | 1.21% | 1.63% | 1.80% | 2.00% | 1.65% | 1.86% | 2.00% |
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
SCHO and SCHB have a correlation of 0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SCHB has higher volatility (2.97%) compared to SCHO (0.42%). In terms of maximum drawdown, SCHO dropped -5.69% vs SCHB's -35.27%.
On 10-year performance, SCHB leads with 15.02% vs 1.72% for SCHO. Both ETFs have the same 0.03% expense ratio. On volatility, SCHO has been the lower-risk option at 0.42%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SCHB has performed better with a 15.02% return vs 1.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SCHO and SCHB have the same expense ratio: 0.03% per year.
SCHO has the higher dividend yield at 3.90%, compared with 1.01% for SCHB.
SCHO is categorized as Government Bonds, while SCHB is Large Cap Blend Equities. SCHO tracks Bloomberg U.S. Treasury 1-3 Year Index, while SCHB tracks Dow Jones U.S. Broad Stock Market Index.
SCHO currently has the higher Sharpe Ratio (2.46 vs 2.39), 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.
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