SCHQ vs. SCHI
Compare and contrast key facts about Schwab Long-Term U.S. Treasury ETF (SCHQ) and Schwab 5-10 Year Corporate Bond ETF (SCHI).
SCHQ and SCHI 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. SCHI is a passively managed fund by Charles Schwab that tracks the performance of the Bloomberg US Aggregate Credit - Corporate (5-10 Y). It was launched on Oct 10, 2019. Both SCHQ and SCHI 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 SCHI.
Key characteristics
| SCHQ | SCHI | |
|---|---|---|
| YTD Return | -4.77% | -0.11% |
| 1Y Return | -5.81% | 5.12% |
| 3Y Return (Ann) | -9.02% | -1.93% |
| Sharpe Ratio | -0.41 | 0.68 |
| Daily Std Dev | 15.09% | 6.99% |
| Max Drawdown | -46.13% | -20.67% |
| Current Drawdown | -38.78% | -8.32% |
Correlation
The correlation between SCHQ and SCHI is 0.73, 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. SCHI - Performance Comparison
In the year-to-date period, SCHQ achieves a -4.77% return, which is significantly lower than SCHI's -0.11% 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. SCHI - Expense Ratio Comparison
Both SCHQ and SCHI have an expense ratio of 0.05%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Risk-Adjusted Performance
SCHQ vs. SCHI - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Long-Term U.S. Treasury ETF (SCHQ) and Schwab 5-10 Year Corporate Bond ETF (SCHI). 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. SCHI - Dividend Comparison
SCHQ's dividend yield for the trailing twelve months is around 4.19%, less than SCHI's 5.01% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|
SCHQ Schwab Long-Term U.S. Treasury ETF | 4.19% | 3.79% | 2.88% | 1.69% | 1.51% | 0.44% |
SCHI Schwab 5-10 Year Corporate Bond ETF | 5.01% | 4.27% | 3.10% | 1.93% | 2.31% | 0.53% |
Drawdowns
SCHQ vs. SCHI - Drawdown Comparison
The maximum SCHQ drawdown since its inception was -46.13%, which is greater than SCHI's maximum drawdown of -20.67%. Use the drawdown chart below to compare losses from any high point for SCHQ and SCHI. For additional features, visit the drawdowns tool.
Volatility
SCHQ vs. SCHI - Volatility Comparison
Schwab Long-Term U.S. Treasury ETF (SCHQ) has a higher volatility of 2.77% compared to Schwab 5-10 Year Corporate Bond ETF (SCHI) at 1.49%. This indicates that SCHQ's price experiences larger fluctuations and is considered to be riskier than SCHI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.