SCHQ vs. BNDD

Last updated Jun 4, 2026

SCHQ (Schwab Long-Term U.S. Treasury ETF) and BNDD (Quadratic Deflation ETF) are both Government Bonds funds. SCHQ is passively managed, while BNDD is actively managed. Over the past 3 years, SCHQ returned -0.72%/yr vs -3.91%/yr for BNDD. A 0.73 correlation means they provide meaningful diversification when combined. SCHQ charges 0.03%/yr vs 1.02%/yr for BNDD.

Performance

SCHQ vs. BNDD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Long-Term U.S. Treasury ETF (SCHQ) and Quadratic Deflation ETF (BNDD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCHQ achieves a -0.43% return, which is significantly lower than BNDD's 4.32% return.

SCHQ

• 1D: -0.45%
• 1M: 0.65%
• YTD: -0.43%
• 6M: -1.74%
• 1Y: 5.22%
• 3Y*: -0.72%
• 5Y*: -5.29%
• 10Y*: —

BNDD

• 1D: -0.08%
• 1M: 1.37%
• YTD: 4.32%
• 6M: 2.24%
• 1Y: 3.39%
• 3Y*: -3.91%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

SCHQ vs. BNDD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
SCHQ Schwab Long-Term U.S. Treasury ETF	-0.43%	5.50%	-6.44%	3.43%	-29.44%	-1.50%
BNDD Quadratic Deflation ETF	4.32%	-8.17%	-6.65%	4.02%	-17.48%	5.54%

Correlation

The correlation between SCHQ and BNDD is 0.62, 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	0.62
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (All Time) Calculated using the full available price history since Sep 22, 2021	0.73

The correlation between SCHQ and BNDD shifts across timeframes, from 0.62 (1 year) to 0.73 (all time), reflecting how their relationship changes across market environments.

SCHQ vs. BNDD - Sectors Allocation Comparison

Sectors	SCHQ	BNDD
Technology	4.9%	-
Communication Services	3.3%	-
Financial Services	1.0%	77.7%
Basic Materials	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

SCHQ vs. BNDD — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SCHQ

SCHQ Risk / Return Rank: 17
SCHQ Sharpe Ratio Rank: 18
SCHQ Sortino Ratio Rank: 17
SCHQ Omega Ratio Rank: 16
SCHQ Calmar Ratio Rank: 18
SCHQ Martin Ratio Rank: 18

BNDD

BNDD Risk / Return Rank: 14
BNDD Sharpe Ratio Rank: 13
BNDD Sortino Ratio Rank: 12
BNDD Omega Ratio Rank: 12
BNDD Calmar Ratio Rank: 16
BNDD Martin Ratio Rank: 15

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

SCHQ vs. BNDD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Long-Term U.S. Treasury ETF (SCHQ) and Quadratic Deflation ETF (BNDD). 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.

	SCHQ	BNDD	Difference
Sharpe ratio: Return per unit of total volatility	0.59	0.32	+0.27
Sortino ratio: Return per unit of downside risk	0.91	0.52	+0.38
Omega ratio: Gain probability vs. loss probability	1.10	1.06	+0.04
Calmar ratio: Return relative to maximum drawdown	0.75	0.56	+0.19
Martin ratio: Return relative to average drawdown	1.94	1.20	+0.74
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SCHQ vs. BNDD - Sharpe Ratio Comparison

The current SCHQ Sharpe Ratio is 0.59, which is higher than the BNDD Sharpe Ratio of 0.32. The chart below compares the historical Sharpe Ratios of SCHQ and BNDD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	SCHQ	BNDD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.59	0.32	+0.27
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.37	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.25	-0.33	+0.08

Drawdowns

SCHQ vs. BNDD - Drawdown Comparison

The maximum SCHQ drawdown since its inception was -46.13%, which is greater than BNDD's maximum drawdown of -30.87%. Use the drawdown chart below to compare losses from any high point for SCHQ and BNDD.

Drawdown Indicators

	SCHQ	BNDD	Difference
Max Drawdown Largest peak-to-trough decline	-46.13%	-30.87%	-15.26%
Max Drawdown (1Y) Largest decline over 1 year	-7.01%	-6.09%	-0.92%
Max Drawdown (3Y) Largest decline over 3 years	-17.65%	-20.75%	+3.10%
Max Drawdown (5Y) Largest decline over 5 years	-40.93%	—	—
Current Drawdown Current decline from peak	-36.82%	-26.51%	-10.31%
Average Drawdown Average peak-to-trough decline	-26.36%	-19.34%	-7.02%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.70%	2.83%	-0.13%

Volatility

SCHQ vs. BNDD - Volatility Comparison

Schwab Long-Term U.S. Treasury ETF (SCHQ) has a higher volatility of 2.57% compared to Quadratic Deflation ETF (BNDD) at 2.21%. This indicates that SCHQ's price experiences larger fluctuations and is considered to be riskier than BNDD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHQ	BNDD	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.57%	2.21%	+0.36%
Volatility (6M) Calculated over the trailing 6-month period	5.94%	8.11%	-2.17%
Volatility (1Y) Calculated over the trailing 1-year period	8.93%	10.59%	-1.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.54%	13.38%	+1.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.33%	13.38%	+1.95%

SCHQ vs. BNDD - Expense Ratio Comparison

SCHQ has a 0.03% expense ratio, which is lower than BNDD's 1.02% expense ratio.

Dividends

SCHQ vs. BNDD - Dividend Comparison

SCHQ's dividend yield for the trailing twelve months is around 4.79%, more than BNDD's 3.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
BNDD Quadratic Deflation ETF	3.61%	3.82%	3.85%	4.30%	43.17%	1.04%	0.00%	0.00%
SCHQ Schwab Long-Term U.S. Treasury ETF	4.79%	4.54%	4.58%	3.79%	2.88%	1.69%	1.51%	0.44%

Frequently Asked Questions

Can I hold both SCHQ and BNDD in my portfolio?

SCHQ and BNDD have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCHQ or BNDD?

SCHQ has higher volatility (2.57%) compared to BNDD (2.21%). In terms of maximum drawdown, SCHQ dropped -46.13% vs BNDD's -30.87%.

Which ETF is better, SCHQ or BNDD?

On 3-year performance, SCHQ leads with -0.72% vs -3.91% for BNDD. On fees, SCHQ is cheaper at 0.03% per year. On volatility, BNDD has been the lower-risk option at 2.21%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHQ or BNDD?

Over the 3-year period, SCHQ has performed better with a -0.72% return vs -3.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHQ or BNDD?

SCHQ is cheaper with a 0.03% expense ratio, compared with 1.02% for BNDD.

Which ETF pays a higher dividend yield, SCHQ or BNDD?

SCHQ has the higher dividend yield at 4.79%, compared with 3.61% for BNDD.

What is the main difference between SCHQ and BNDD?

They also come from different issuers: Charles Schwab and KraneShares. Their fees differ too: 0.03% for SCHQ and 1.02% for BNDD.

Which has better risk-adjusted returns?

SCHQ currently has the higher Sharpe Ratio (0.59 vs 0.32), 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.