SCHQ vs. SCHD

Last updated Jun 17, 2026

SCHQ (Schwab Long-Term U.S. Treasury ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - SCHQ is a Government Bonds fund tracking the Bloomberg U.S. Long Treasury Index, while SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. Both are passively managed. Over the past 5 years, SCHQ returned -5.48%/yr vs 9.13%/yr for SCHD. At a correlation of -0.08, they often move in opposite directions. SCHQ charges 0.03%/yr vs 0.06%/yr for SCHD.

Performance

SCHQ vs. SCHD - Performance Comparison

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

Returns By Period

In the year-to-date period, SCHQ achieves a 0.60% return, which is significantly lower than SCHD's 19.60% return.

SCHQ

• 1D: 0.55%
• 1M: 3.19%
• YTD: 0.60%
• 6M: 0.40%
• 1Y: 5.72%
• 3Y*: -0.50%
• 5Y*: -5.48%
• 10Y*: —

SCHD

• 1D: -0.31%
• 1M: 2.55%
• YTD: 19.60%
• 6M: 19.42%
• 1Y: 25.51%
• 3Y*: 14.16%
• 5Y*: 9.13%
• 10Y*: 12.80%

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

SCHQ vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
SCHQ Schwab Long-Term U.S. Treasury ETF	0.60%	5.50%	-6.44%	3.43%	-29.44%	-4.86%	17.73%	-4.20%
SCHD Schwab U.S. Dividend Equity ETF	19.60%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	9.50%

Correlation

The correlation between SCHQ and SCHD is 0.13, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.13
Correlation (3Y) Calculated over the trailing 3-year period	0.18
Correlation (5Y) Calculated over the trailing 5-year period	0.06
Correlation (All Time) Calculated using the full available price history since Oct 10, 2019	-0.08

The correlation between SCHQ and SCHD shifts across timeframes, from -0.08 (all time) to 0.18 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

SCHQ vs. SCHD — Risk / Return Rank

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

SCHQ

SCHQ Risk / Return Rank: 18
SCHQ Sharpe Ratio Rank: 20
SCHQ Sortino Ratio Rank: 18
SCHQ Omega Ratio Rank: 17
SCHQ Calmar Ratio Rank: 19
SCHQ Martin Ratio Rank: 18

SCHD

SCHD Risk / Return Rank: 80
SCHD Sharpe Ratio Rank: 76
SCHD Sortino Ratio Rank: 85
SCHD Omega Ratio Rank: 74
SCHD Calmar Ratio Rank: 91
SCHD Martin Ratio Rank: 75

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. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Long-Term U.S. Treasury ETF (SCHQ) and Schwab U.S. Dividend Equity ETF (SCHD). 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	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	0.66	2.34	-1.68
Sortino ratio: Return per unit of downside risk	1.02	3.63	-2.61
Omega ratio: Gain probability vs. loss probability	1.12	1.42	-0.30
Calmar ratio: Return relative to maximum drawdown	0.82	5.55	-4.73
Martin ratio: Return relative to average drawdown	2.04	13.67	-11.62

SCHQ vs. SCHD - Sharpe Ratio Comparison

The current SCHQ Sharpe Ratio is 0.66, which is lower than the SCHD Sharpe Ratio of 2.34. The chart below compares the historical Sharpe Ratios of SCHQ and SCHD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

SCHQ vs. SCHD - Drawdown Comparison

The maximum SCHQ drawdown since its inception was -46.13%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for SCHQ and SCHD.

Drawdown Indicators

	SCHQ	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-46.13%	-33.37%	-12.76%
Max Drawdown (1Y) Largest decline over 1 year	-7.01%	-4.61%	-2.40%
Max Drawdown (3Y) Largest decline over 3 years	-17.65%	-16.13%	-1.52%
Max Drawdown (5Y) Largest decline over 5 years	-40.93%	-16.85%	-24.08%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.37%	—
Current Drawdown Current decline from peak	-36.16%	-0.91%	-35.25%
Average Drawdown Average peak-to-trough decline	-26.41%	-3.31%	-23.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.81%	1.88%	+0.93%

Volatility

SCHQ vs. SCHD - Volatility Comparison

The current volatility for Schwab Long-Term U.S. Treasury ETF (SCHQ) is 2.21%, while Schwab U.S. Dividend Equity ETF (SCHD) has a volatility of 3.15%. This indicates that SCHQ experiences smaller price fluctuations and is considered to be less risky than SCHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHQ	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.21%	3.15%	-0.94%
Volatility (6M) Calculated over the trailing 6-month period	6.05%	7.57%	-1.52%
Volatility (1Y) Calculated over the trailing 1-year period	8.72%	10.93%	-2.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.53%	14.39%	+0.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.30%	16.72%	-1.42%

SCHQ vs. SCHD - Expense Ratio Comparison

SCHQ has a 0.03% expense ratio, which is lower than SCHD's 0.06% 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. SCHD - Dividend Comparison

SCHQ's dividend yield for the trailing twelve months is around 4.74%, more than SCHD's 3.25% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHD Schwab U.S. Dividend Equity ETF	3.25%	3.82%	3.64%	3.49%	3.39%	2.78%	3.16%	2.98%	3.06%	2.63%	2.89%	2.97%
SCHQ Schwab Long-Term U.S. Treasury ETF	4.74%	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

Can I hold both SCHQ and SCHD in my portfolio?

SCHQ and SCHD have a correlation of 0.13, 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 SCHD?

SCHD has higher volatility (3.15%) compared to SCHQ (2.21%). In terms of maximum drawdown, SCHQ dropped -46.13% vs SCHD's -33.37%.

Which ETF is better, SCHQ or SCHD?

On 5-year performance, SCHD leads with 9.13% vs -5.48% for SCHQ. On fees, SCHQ is cheaper at 0.03% per year. On volatility, SCHQ 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 SCHD?

Over the 5-year period, SCHD has performed better with a 9.13% return vs -5.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHQ or SCHD?

SCHQ is cheaper with a 0.03% expense ratio, compared with 0.06% for SCHD.

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

SCHQ has the higher dividend yield at 4.74%, compared with 3.25% for SCHD.

What is the main difference between SCHQ and SCHD?

SCHQ is categorized as Government Bonds, while SCHD is Dividend. SCHQ tracks Bloomberg U.S. Long Treasury Index, while SCHD tracks Dow Jones U.S. Dividend 100 Index. Their fees differ too: 0.03% for SCHQ and 0.06% for SCHD.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.34 vs 0.66), 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.