SCHO vs. SCHI
SCHO (Schwab Short-Term U.S. Treasury ETF) and SCHI (Schwab 5-10 Year Corporate Bond ETF) are both exchange-traded funds - SCHO is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index, while SCHI is a Corporate Bonds fund tracking the Bloomberg US Aggregate Credit - Corporate (5-10 Y). Both are passively managed. Over the past 5 years, SCHO returned 1.82%/yr vs 1.29%/yr for SCHI. A 0.68 correlation means they provide meaningful diversification when combined. SCHO charges 0.03%/yr vs 0.05%/yr for SCHI.
Performance
SCHO vs. SCHI - Performance Comparison
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Returns By Period
In the year-to-date period, SCHO achieves a 0.50% return, which is significantly higher than SCHI's 0.37% 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%
SCHI
- 1D
- 0.18%
- 1M
- 0.28%
- YTD
- 0.37%
- 6M
- 0.46%
- 1Y
- 5.80%
- 3Y*
- 6.17%
- 5Y*
- 1.29%
- 10Y*
- —
SCHO vs. SCHI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
SCHO Schwab Short-Term U.S. Treasury ETF | 0.50% | 5.49% | 3.65% | 4.31% | -3.87% | -0.64% | 3.11% | 0.28% |
SCHI Schwab 5-10 Year Corporate Bond ETF | 0.37% | 9.47% | 3.32% | 8.97% | -14.06% | -1.85% | 9.74% | 1.00% |
Correlation
The correlation between SCHO and SCHI is 0.72, 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 | 0.72 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.75 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.74 |
Correlation (All Time) Calculated using the full available price history since Oct 11, 2019 | 0.68 |
The correlation between SCHO and SCHI has been stable across timeframes, ranging from 0.68 to 0.75 - a consistent structural relationship.
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Return for Risk
SCHO vs. SCHI — Risk / Return Rank
SCHO
SCHI
SCHO vs. SCHI - 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 5-10 Year Corporate Bond ETF (SCHI). 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 | SCHI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.04 | ||
| Sortino ratioReturn per unit of downside risk | +1.93 | ||
| Omega ratioGain probability vs. loss probability | 1.49 | 1.25 | +0.25 |
| Calmar ratioReturn relative to maximum drawdown | 3.91 | 1.94 | +1.98 |
| Martin ratioReturn relative to average drawdown | 16.82 | 6.54 | +10.29 |
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 | SCHI | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.46 | 1.41 | +1.04 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.92 | 0.20 | +0.73 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.11 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.00 | 0.30 | +0.70 |
Drawdowns
SCHO vs. SCHI - Drawdown Comparison
The maximum SCHO drawdown since its inception was -5.69%, smaller than the maximum SCHI drawdown of -20.67%. Use the drawdown chart below to compare losses from any high point for SCHO and SCHI.
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Drawdown Indicators
| SCHO | SCHI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.69% | -20.67% | +14.98% |
Max Drawdown (1Y)Largest decline over 1 year | -0.86% | -3.01% | +2.15% |
Max Drawdown (3Y)Largest decline over 3 years | -0.98% | -6.14% | +5.16% |
Max Drawdown (5Y)Largest decline over 5 years | -5.69% | -20.67% | +14.98% |
Max Drawdown (10Y)Largest decline over 10 years | -5.69% | — | — |
Current DrawdownCurrent decline from peak | -0.18% | -1.19% | +1.01% |
Average DrawdownAverage peak-to-trough decline | -0.61% | -5.71% | +5.10% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.20% | 0.89% | -0.69% |
Volatility
SCHO vs. SCHI - Volatility Comparison
The current volatility for Schwab Short-Term U.S. Treasury ETF (SCHO) is 0.42%, while Schwab 5-10 Year Corporate Bond ETF (SCHI) has a volatility of 1.32%. This indicates that SCHO experiences smaller price fluctuations and is considered to be less risky than SCHI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SCHO | SCHI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.42% | 1.32% | -0.90% |
Volatility (6M)Calculated over the trailing 6-month period | 0.91% | 3.09% | -2.18% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.37% | 4.16% | -2.79% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.98% | 6.66% | -4.68% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.56% | 7.40% | -5.84% |
SCHO vs. SCHI - Expense Ratio Comparison
SCHO has a 0.03% expense ratio, which is lower than SCHI's 0.05% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
SCHO vs. SCHI - Dividend Comparison
SCHO's dividend yield for the trailing twelve months is around 3.90%, less than SCHI's 5.04% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCHI Schwab 5-10 Year Corporate Bond ETF | 5.04% | 4.99% | 5.11% | 4.27% | 3.10% | 1.93% | 2.31% | 0.53% | 0.00% | 0.00% | 0.00% | 0.00% |
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 SCHI have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SCHI has higher volatility (1.32%) compared to SCHO (0.42%). In terms of maximum drawdown, SCHO dropped -5.69% vs SCHI's -20.67%.
On 5-year performance, SCHO leads with 1.82% vs 1.29% for SCHI. On fees, SCHO is cheaper at 0.03% per year. 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 5-year period, SCHO has performed better with a 1.82% return vs 1.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SCHO is cheaper with a 0.03% expense ratio, compared with 0.05% for SCHI.
SCHI has the higher dividend yield at 5.04%, compared with 3.90% for SCHO.
SCHO is categorized as Government Bonds, while SCHI is Corporate Bonds. SCHO tracks Bloomberg U.S. Treasury 1-3 Year Index, while SCHI tracks Bloomberg US Aggregate Credit - Corporate (5-10 Y). Their fees differ too: 0.03% for SCHO and 0.05% for SCHI.
SCHO currently has the higher Sharpe Ratio (2.46 vs 1.41), 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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