SCHO vs. SCHQ
SCHO (Schwab Short-Term U.S. Treasury ETF) and SCHQ (Schwab Long-Term U.S. Treasury ETF) are both Government Bonds funds from Charles Schwab - SCHO tracks the Bloomberg U.S. Treasury 1-3 Year Index while SCHQ tracks the Bloomberg U.S. Long Treasury Index. Both are passively managed. Over the past 5 years, SCHO returned 1.84%/yr vs -5.56%/yr for SCHQ. A 0.59 correlation means they provide meaningful diversification when combined. Both charge a 0.03% expense ratio.
Performance
SCHO vs. SCHQ - Performance Comparison
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Returns By Period
In the year-to-date period, SCHO achieves a 0.42% return, which is significantly higher than SCHQ's 0.37% return.
SCHO
- 1D
- -0.04%
- 1M
- 0.14%
- YTD
- 0.42%
- 6M
- 0.54%
- 1Y
- 3.09%
- 3Y*
- 4.20%
- 5Y*
- 1.84%
- 10Y*
- 1.68%
SCHQ
- 1D
- -0.67%
- 1M
- 1.95%
- YTD
- 0.37%
- 6M
- 0.37%
- 1Y
- 4.37%
- 3Y*
- -0.77%
- 5Y*
- -5.56%
- 10Y*
- —
SCHO vs. SCHQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
SCHO Schwab Short-Term U.S. Treasury ETF | 0.42% | 5.49% | 3.65% | 4.31% | -3.87% | -0.64% | 3.11% | 0.14% |
SCHQ Schwab Long-Term U.S. Treasury ETF | 0.37% | 5.50% | -6.44% | 3.43% | -29.44% | -4.86% | 17.73% | -4.20% |
Correlation
The correlation between SCHO and SCHQ is 0.60, 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 | 0.60 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.64 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.63 |
Correlation (All Time) Calculated using the full available price history since Oct 10, 2019 | 0.59 |
The correlation between SCHO and SCHQ has been stable across timeframes, ranging from 0.59 to 0.64 - a consistent structural relationship.
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Return for Risk
SCHO vs. SCHQ — Risk / Return Rank
SCHO
SCHQ
SCHO vs. SCHQ - 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 Long-Term U.S. Treasury ETF (SCHQ). 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 | SCHQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.71 | ||
| Sortino ratioReturn per unit of downside risk | +2.72 | ||
| Omega ratioGain probability vs. loss probability | 1.44 | 1.09 | +0.35 |
| Calmar ratioReturn relative to maximum drawdown | 3.61 | 0.63 | +2.99 |
| Martin ratioReturn relative to average drawdown | 15.06 | 1.55 | +13.51 |
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Drawdowns
SCHO vs. SCHQ - Drawdown Comparison
The maximum SCHO drawdown since its inception was -5.69%, smaller than the maximum SCHQ drawdown of -46.13%. Use the drawdown chart below to compare losses from any high point for SCHO and SCHQ.
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Drawdown Indicators
| SCHO | SCHQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.69% | -46.13% | +40.44% |
Max Drawdown (1Y)Largest decline over 1 year | -0.86% | -7.01% | +6.15% |
Max Drawdown (3Y)Largest decline over 3 years | -0.98% | -17.65% | +16.67% |
Max Drawdown (5Y)Largest decline over 5 years | -5.69% | -40.93% | +35.24% |
Max Drawdown (10Y)Largest decline over 10 years | -5.69% | — | — |
Current DrawdownCurrent decline from peak | -0.27% | -36.31% | +36.04% |
Average DrawdownAverage peak-to-trough decline | -0.61% | -26.42% | +25.81% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.21% | 2.83% | -2.62% |
Volatility
SCHO vs. SCHQ - Volatility Comparison
The current volatility for Schwab Short-Term U.S. Treasury ETF (SCHO) is 0.49%, while Schwab Long-Term U.S. Treasury ETF (SCHQ) has a volatility of 2.09%. This indicates that SCHO experiences smaller price fluctuations and is considered to be less risky than SCHQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SCHO | SCHQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.49% | 2.09% | -1.60% |
Volatility (6M)Calculated over the trailing 6-month period | 0.98% | 6.08% | -5.10% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.40% | 8.66% | -7.26% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.99% | 14.49% | -12.50% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.56% | 15.29% | -13.73% |
SCHO vs. SCHQ - Expense Ratio Comparison
Both SCHO and SCHQ 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. SCHQ - Dividend Comparison
SCHO's dividend yield for the trailing twelve months is around 3.91%, less than SCHQ's 4.75% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
SCHQ Schwab Long-Term U.S. Treasury ETF | 4.75% | 4.54% | 4.58% | 3.79% | 2.88% | 1.69% | 1.51% | 0.44% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
SCHO and SCHQ have a correlation of 0.60, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SCHQ has higher volatility (2.09%) compared to SCHO (0.49%). In terms of maximum drawdown, SCHO dropped -5.69% vs SCHQ's -46.13%.
On 5-year performance, SCHO leads with 1.84% vs -5.56% for SCHQ. Both ETFs have the same 0.03% expense ratio. On volatility, SCHO has been the lower-risk option at 0.49%. 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 1.84% return vs -5.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SCHO and SCHQ have the same expense ratio: 0.03% per year.
SCHQ has the higher dividend yield at 4.75%, compared with 3.91% for SCHO.
SCHO tracks Bloomberg U.S. Treasury 1-3 Year Index, while SCHQ tracks Bloomberg U.S. Long Treasury Index.
SCHO currently has the higher Sharpe Ratio (2.22 vs 0.51), 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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