SCHQ vs. GOVZ
SCHQ (Schwab Long-Term U.S. Treasury ETF) and GOVZ (iShares 25+ Year Treasury STRIPS Bond ETF) are both Government Bonds funds - SCHQ tracks the Bloomberg U.S. Long Treasury Index while GOVZ tracks the ICE BofA Long US Treasury Principal STRIPS Index. Both are passively managed. Over the past 5 years, SCHQ returned -5.16%/yr vs -11.20%/yr for GOVZ. With a 0.98 correlation, they move nearly in lockstep. SCHQ charges 0.03%/yr vs 0.15%/yr for GOVZ.
Performance
SCHQ vs. GOVZ - Performance Comparison
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Returns By Period
In the year-to-date period, SCHQ achieves a 1.69% return, which is significantly lower than GOVZ's 3.43% return.
SCHQ
- 1D
- -0.06%
- 1M
- 2.69%
- YTD
- 1.69%
- 6M
- 1.02%
- 1Y
- 4.58%
- 3Y*
- -0.40%
- 5Y*
- -5.16%
- 10Y*
- —
GOVZ
- 1D
- -0.13%
- 1M
- 5.88%
- YTD
- 3.43%
- 6M
- 1.35%
- 1Y
- 4.02%
- 3Y*
- -6.88%
- 5Y*
- -11.20%
- 10Y*
- —
SCHQ vs. GOVZ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
SCHQ Schwab Long-Term U.S. Treasury ETF | 1.69% | 5.50% | -6.44% | 3.43% | -29.44% | -4.86% | -3.67% |
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF | 3.43% | -1.81% | -16.24% | 0.90% | -41.03% | -4.86% | -5.61% |
Correlation
The correlation between SCHQ and GOVZ is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.97 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.97 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.98 |
Correlation (All Time) Calculated using the full available price history since Sep 24, 2020 | 0.98 |
The correlation between SCHQ and GOVZ has been stable across timeframes, ranging from 0.97 to 0.98 - a consistent structural relationship.
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Return for Risk
SCHQ vs. GOVZ — Risk / Return Rank
SCHQ
GOVZ
SCHQ vs. GOVZ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Long-Term U.S. Treasury ETF (SCHQ) and iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ). 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.
| SCHQ | GOVZ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.27 | ||
| Sortino ratioReturn per unit of downside risk | +0.34 | ||
| Omega ratioGain probability vs. loss probability | 1.09 | 1.05 | +0.04 |
| Calmar ratioReturn relative to maximum drawdown | 0.66 | 0.28 | +0.37 |
| Martin ratioReturn relative to average drawdown | 1.61 | 0.62 | +0.99 |
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Drawdowns
SCHQ vs. GOVZ - Drawdown Comparison
The maximum SCHQ drawdown since its inception was -46.13%, smaller than the maximum GOVZ drawdown of -59.65%. Use the drawdown chart below to compare losses from any high point for SCHQ and GOVZ.
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Drawdown Indicators
| SCHQ | GOVZ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -46.13% | -59.65% | +13.52% |
Max Drawdown (1Y)Largest decline over 1 year | -7.01% | -14.16% | +7.15% |
Max Drawdown (3Y)Largest decline over 3 years | -17.65% | -28.72% | +11.07% |
Max Drawdown (5Y)Largest decline over 5 years | -40.93% | -57.63% | +16.70% |
Current DrawdownCurrent decline from peak | -35.47% | -54.55% | +19.08% |
Average DrawdownAverage peak-to-trough decline | -26.44% | -40.05% | +13.61% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.85% | 6.52% | -3.67% |
Volatility
SCHQ vs. GOVZ - Volatility Comparison
The current volatility for Schwab Long-Term U.S. Treasury ETF (SCHQ) is 2.29%, while iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) has a volatility of 4.06%. This indicates that SCHQ experiences smaller price fluctuations and is considered to be less risky than GOVZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SCHQ | GOVZ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.29% | 4.06% | -1.77% |
Volatility (6M)Calculated over the trailing 6-month period | 6.17% | 10.90% | -4.73% |
Volatility (1Y)Calculated over the trailing 1-year period | 8.70% | 15.85% | -7.15% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 14.49% | 23.87% | -9.38% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 15.28% | 23.28% | -8.00% |
SCHQ vs. GOVZ - Expense Ratio Comparison
SCHQ has a 0.03% expense ratio, which is lower than GOVZ'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%.
Dividends
SCHQ vs. GOVZ - Dividend Comparison
SCHQ's dividend yield for the trailing twelve months is around 4.69%, less than GOVZ's 4.96% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|---|---|---|
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF | 4.96% | 5.00% | 4.68% | 3.84% | 3.69% | 1.76% | 0.39% | 0.00% |
SCHQ Schwab Long-Term U.S. Treasury ETF | 4.69% | 4.54% | 4.58% | 3.79% | 2.88% | 1.69% | 1.51% | 0.44% |
Frequently Asked Questions
With a correlation of 0.97, SCHQ and GOVZ move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
GOVZ has higher volatility (4.06%) compared to SCHQ (2.29%). In terms of maximum drawdown, SCHQ dropped -46.13% vs GOVZ's -59.65%.
On 5-year performance, SCHQ leads with -5.16% vs -11.20% for GOVZ. On fees, SCHQ is cheaper at 0.03% per year. On volatility, SCHQ has been the lower-risk option at 2.29%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, SCHQ has performed better with a -5.16% return vs -11.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SCHQ is cheaper with a 0.03% expense ratio, compared with 0.15% for GOVZ.
GOVZ has the higher dividend yield at 4.96%, compared with 4.69% for SCHQ.
SCHQ tracks Bloomberg U.S. Long Treasury Index, while GOVZ tracks ICE BofA Long US Treasury Principal STRIPS Index. They also come from different issuers: Charles Schwab and iShares. Their fees differ too: 0.03% for SCHQ and 0.15% for GOVZ.
SCHQ currently has the higher Sharpe Ratio (0.53 vs 0.25), 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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