SCHX vs. LQD
SCHX (Schwab U.S. Large-Cap ETF) and LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) are both exchange-traded funds - SCHX is a Large Cap Blend Equities fund tracking the Dow Jones U.S. Large-Cap Total Stock Market Index, while LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index. Both are passively managed. Over the past 10 years, SCHX returned 15.20%/yr vs 2.41%/yr for LQD. At a 0.10 correlation, their price movements are largely independent. SCHX charges 0.03%/yr vs 0.15%/yr for LQD.
Performance
SCHX vs. LQD - Performance Comparison
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Returns By Period
In the year-to-date period, SCHX achieves a 8.56% return, which is significantly higher than LQD's -0.06% return. Over the past 10 years, SCHX has outperformed LQD with an annualized return of 15.20%, while LQD has yielded a comparatively lower 2.41% annualized return.
SCHX
- 1D
- 0.28%
- 1M
- 0.45%
- YTD
- 8.56%
- 6M
- 8.52%
- 1Y
- 24.19%
- 3Y*
- 21.40%
- 5Y*
- 12.87%
- 10Y*
- 15.20%
LQD
- 1D
- -0.10%
- 1M
- -0.67%
- YTD
- -0.06%
- 6M
- -0.06%
- 1Y
- 5.73%
- 3Y*
- 4.95%
- 5Y*
- -0.28%
- 10Y*
- 2.41%
SCHX vs. LQD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SCHX Schwab U.S. Large-Cap ETF | 8.56% | 17.46% | 24.88% | 26.84% | -19.41% | 26.81% | 20.81% | 31.22% | -4.66% | 21.95% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | -0.06% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 10.97% | 17.37% | -3.79% | 7.06% |
Correlation
The correlation between SCHX and LQD is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.42 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.34 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.32 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.24 |
Correlation (All Time) Calculated using the full available price history since Nov 4, 2009 | 0.10 |
Over the past year, SCHX and LQD have become more correlated (0.42) than their long-term average of 0.10, meaning their price movements have been converging.
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Return for Risk
SCHX vs. LQD — Risk / Return Rank
SCHX
LQD
SCHX vs. LQD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Large-Cap ETF (SCHX) and iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD). 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.
| SCHX | LQD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.90 | ||
| Sortino ratioReturn per unit of downside risk | +1.10 | ||
| Omega ratioGain probability vs. loss probability | 1.36 | 1.19 | +0.17 |
| Calmar ratioReturn relative to maximum drawdown | 2.69 | 1.72 | +0.97 |
| Martin ratioReturn relative to average drawdown | 12.15 | 4.88 | +7.27 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| SCHX | LQD | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.98 | 1.08 | +0.90 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.75 | -0.03 | +0.79 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.84 | 0.28 | +0.56 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.84 | 0.54 | +0.31 |
Drawdowns
SCHX vs. LQD - Drawdown Comparison
The maximum SCHX drawdown since its inception was -34.33%, which is greater than LQD's maximum drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for SCHX and LQD.
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Drawdown Indicators
| SCHX | LQD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.33% | -24.95% | -9.38% |
Max Drawdown (1Y)Largest decline over 1 year | -9.02% | -3.34% | -5.68% |
Max Drawdown (3Y)Largest decline over 3 years | -19.04% | -8.43% | -10.61% |
Max Drawdown (5Y)Largest decline over 5 years | -25.41% | -24.95% | -0.46% |
Max Drawdown (10Y)Largest decline over 10 years | -34.33% | -24.95% | -9.38% |
Current DrawdownCurrent decline from peak | -2.64% | -4.21% | +1.57% |
Average DrawdownAverage peak-to-trough decline | -3.97% | -3.99% | +0.02% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.00% | 1.18% | +0.82% |
Volatility
SCHX vs. LQD - Volatility Comparison
Schwab U.S. Large-Cap ETF (SCHX) has a higher volatility of 3.84% compared to iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) at 1.62%. This indicates that SCHX's price experiences larger fluctuations and is considered to be riskier than LQD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SCHX | LQD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.84% | 1.62% | +2.22% |
Volatility (6M)Calculated over the trailing 6-month period | 9.44% | 3.94% | +5.50% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.27% | 5.32% | +6.95% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.16% | 8.65% | +8.51% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.17% | 8.68% | +9.49% |
SCHX vs. LQD - Expense Ratio Comparison
SCHX has a 0.03% expense ratio, which is lower than LQD'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
SCHX vs. LQD - Dividend Comparison
SCHX's dividend yield for the trailing twelve months is around 1.03%, less than LQD's 4.59% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.59% | 4.48% | 4.45% | 3.99% | 3.30% | 2.30% | 2.66% | 3.29% | 3.67% | 3.10% | 3.34% | 3.47% |
SCHX Schwab U.S. Large-Cap ETF | 1.03% | 1.09% | 1.22% | 1.39% | 1.64% | 1.22% | 1.64% | 1.82% | 2.02% | 1.70% | 1.92% | 2.04% |
Frequently Asked Questions
SCHX and LQD have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SCHX has higher volatility (3.84%) compared to LQD (1.62%). In terms of maximum drawdown, SCHX dropped -34.33% vs LQD's -24.95%.
On 10-year performance, SCHX leads with 15.20% vs 2.41% for LQD. On fees, SCHX is cheaper at 0.03% per year. On volatility, LQD has been the lower-risk option at 1.62%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SCHX has performed better with a 15.20% return vs 2.41%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SCHX is cheaper with a 0.03% expense ratio, compared with 0.15% for LQD.
LQD has the higher dividend yield at 4.59%, compared with 1.03% for SCHX.
SCHX is categorized as Large Cap Blend Equities, while LQD is Corporate Bonds. SCHX tracks Dow Jones U.S. Large-Cap Total Stock Market Index, while LQD tracks iBoxx $ Liquid Investment Grade Index. They also come from different issuers: Charles Schwab and iShares. Their fees differ too: 0.03% for SCHX and 0.15% for LQD.
SCHX currently has the higher Sharpe Ratio (1.98 vs 1.08), 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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