SCHQ vs. BND
Compare and contrast key facts about Schwab Long-Term U.S. Treasury ETF (SCHQ) and Vanguard Total Bond Market ETF (BND).
SCHQ and BND are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SCHQ is a passively managed fund by Charles Schwab that tracks the performance of the Bloomberg US Aggregate Government - Treasury - Long. It was launched on Oct 10, 2019. BND is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Aggregate Bond Index. It was launched on Apr 3, 2007. Both SCHQ and BND 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: SCHQ or BND.
Key characteristics
| SCHQ | BND | |
|---|---|---|
| YTD Return | -6.48% | -1.72% |
| 1Y Return | -8.73% | 0.29% |
| 3Y Return (Ann) | -9.59% | -3.10% |
| Sharpe Ratio | -0.63 | -0.04 |
| Daily Std Dev | 15.07% | 6.55% |
| Max Drawdown | -46.13% | -18.84% |
| Current Drawdown | -39.88% | -12.13% |
Correlation
The correlation between SCHQ and BND is 0.89, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
SCHQ vs. BND - Performance Comparison
In the year-to-date period, SCHQ achieves a -6.48% return, which is significantly lower than BND's -1.72% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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SCHQ vs. BND - Expense Ratio Comparison
SCHQ has a 0.05% expense ratio, which is higher than BND's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
SCHQ vs. BND - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Long-Term U.S. Treasury ETF (SCHQ) and Vanguard Total Bond Market ETF (BND). 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
SCHQ vs. BND - Dividend Comparison
SCHQ's dividend yield for the trailing twelve months is around 4.27%, more than BND's 3.37% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCHQ Schwab Long-Term U.S. Treasury ETF | 4.27% | 3.79% | 2.88% | 1.69% | 1.51% | 0.44% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
BND Vanguard Total Bond Market ETF | 3.37% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% | 2.78% |
Drawdowns
SCHQ vs. BND - Drawdown Comparison
The maximum SCHQ drawdown since its inception was -46.13%, which is greater than BND's maximum drawdown of -18.84%. Use the drawdown chart below to compare losses from any high point for SCHQ and BND. For additional features, visit the drawdowns tool.
Volatility
SCHQ vs. BND - Volatility Comparison
Schwab Long-Term U.S. Treasury ETF (SCHQ) has a higher volatility of 3.02% compared to Vanguard Total Bond Market ETF (BND) at 1.47%. This indicates that SCHQ's price experiences larger fluctuations and is considered to be riskier than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.