SCHO vs. TLT
Compare and contrast key facts about Schwab Short-Term U.S. Treasury ETF (SCHO) and iShares 20+ Year Treasury Bond ETF (TLT).
SCHO and TLT are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SCHO is a passively managed fund by Charles Schwab that tracks the performance of the Bloomberg US Treasury (1-3 Y) (Inception 4/30/1996). It was launched on Aug 5, 2010. TLT is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. 20+ Year Treasury Bond Index. It was launched on Jul 26, 2002. Both SCHO and TLT are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: SCHO or TLT.
Performance
SCHO vs. TLT - Performance Comparison
Returns By Period
In the year-to-date period, SCHO achieves a 4.54% return, which is significantly higher than TLT's -5.20% return. Over the past 10 years, SCHO has outperformed TLT with an annualized return of 2.06%, while TLT has yielded a comparatively lower -0.32% annualized return.
SCHO
4.54%
-0.24%
3.23%
6.97%
2.23%
2.06%
TLT
-5.20%
-3.05%
1.00%
4.14%
-6.00%
-0.32%
Key characteristics
| SCHO | TLT | |
|---|---|---|
| Sharpe Ratio | 3.39 | 0.32 |
| Sortino Ratio | 5.95 | 0.56 |
| Omega Ratio | 1.81 | 1.06 |
| Calmar Ratio | 7.09 | 0.11 |
| Martin Ratio | 20.32 | 0.77 |
| Ulcer Index | 0.34% | 6.23% |
| Daily Std Dev | 2.05% | 14.74% |
| Max Drawdown | -5.28% | -48.35% |
| Current Drawdown | -0.77% | -40.93% |
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SCHO vs. TLT - Expense Ratio Comparison
SCHO has a 0.05% expense ratio, which is lower than TLT's 0.15% 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%.
Correlation
The correlation between SCHO and TLT is 0.55, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Risk-Adjusted Performance
SCHO vs. TLT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Short-Term U.S. Treasury ETF (SCHO) and iShares 20+ Year Treasury Bond ETF (TLT). 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.
Dividends
SCHO vs. TLT - Dividend Comparison
SCHO's dividend yield for the trailing twelve months is around 6.08%, more than TLT's 4.06% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCHO Schwab Short-Term U.S. Treasury ETF | 6.08% | 5.68% | 1.74% | 0.61% | 2.00% | 3.03% | 2.82% | 1.84% | 1.17% | 1.06% | 0.70% | 0.40% |
TLT iShares 20+ Year Treasury Bond ETF | 4.06% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% | 2.67% | 3.26% |
Drawdowns
SCHO vs. TLT - Drawdown Comparison
The maximum SCHO drawdown since its inception was -5.28%, smaller than the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for SCHO and TLT. For additional features, visit the drawdowns tool.
Volatility
SCHO vs. TLT - Volatility Comparison
The current volatility for Schwab Short-Term U.S. Treasury ETF (SCHO) is 0.38%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 4.65%. This indicates that SCHO experiences smaller price fluctuations and is considered to be less risky than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.