SCHZ vs. SCHJ

Last updated Jun 4, 2026

SCHZ (Schwab U.S. Aggregate Bond ETF) and SCHJ (Schwab 1-5 Year Corporate Bond ETF) are both exchange-traded funds - SCHZ is a Total Bond Market fund tracking the Bloomberg US Aggregate Bond Index, while SCHJ is a Corporate Bonds fund tracking the Bloomberg US Corporate (1-5 Y). Both are passively managed. Over the past 5 years, SCHZ returned 0.07%/yr vs 2.31%/yr for SCHJ. A 0.79 correlation means they provide meaningful diversification when combined. SCHZ charges 0.03%/yr vs 0.05%/yr for SCHJ.

Performance

SCHZ vs. SCHJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab U.S. Aggregate Bond ETF (SCHZ) and Schwab 1-5 Year Corporate Bond ETF (SCHJ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCHZ achieves a 0.30% return, which is significantly lower than SCHJ's 0.56% return.

SCHZ

• 1D: -0.17%
• 1M: 0.26%
• YTD: 0.30%
• 6M: 0.15%
• 1Y: 5.16%
• 3Y*: 3.94%
• 5Y*: 0.07%
• 10Y*: 1.52%

SCHJ

• 1D: -0.08%
• 1M: 0.13%
• YTD: 0.56%
• 6M: 0.86%
• 1Y: 4.52%
• 3Y*: 5.49%
• 5Y*: 2.31%
• 10Y*: —

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

SCHZ vs. SCHJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
SCHZ Schwab U.S. Aggregate Bond ETF	0.30%	7.24%	1.26%	5.60%	-13.17%	-1.72%	7.46%	0.03%
SCHJ Schwab 1-5 Year Corporate Bond ETF	0.56%	6.80%	4.89%	6.36%	-5.73%	-0.67%	5.30%	0.61%

Correlation

The correlation between SCHZ and SCHJ is 0.86, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.86
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (5Y) Calculated over the trailing 5-year period	0.85
Correlation (All Time) Calculated using the full available price history since Oct 11, 2019	0.79

The correlation between SCHZ and SCHJ has been stable across timeframes, ranging from 0.79 to 0.86 - a consistent structural relationship.

SCHZ vs. SCHJ - Sectors Allocation Comparison

Sectors	SCHZ	SCHJ
Financial Services	8.3%	30.8%
Technology	3.0%	8.3%
Healthcare	2.3%	7.9%
Utilities	2.1%	6.4%
Communication Services	2.1%	4.3%
Industrials	1.7%	7.2%
Consumer Cyclical	1.4%	6.8%
Energy	1.3%	4.0%
Consumer Defensive	1.1%	4.6%
Real Estate	0.8%	4.1%
Basic Materials	0.4%	1.4%

Return for Risk

SCHZ vs. SCHJ — Risk / Return Rank

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

SCHZ

SCHZ Risk / Return Rank: 37
SCHZ Sharpe Ratio Rank: 37
SCHZ Sortino Ratio Rank: 39
SCHZ Omega Ratio Rank: 35
SCHZ Calmar Ratio Rank: 38
SCHZ Martin Ratio Rank: 37

SCHJ

SCHJ Risk / Return Rank: 72
SCHJ Sharpe Ratio Rank: 73
SCHJ Sortino Ratio Rank: 83
SCHJ Omega Ratio Rank: 79
SCHJ Calmar Ratio Rank: 61
SCHJ Martin Ratio Rank: 66

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.

SCHZ vs. SCHJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Aggregate Bond ETF (SCHZ) and Schwab 1-5 Year Corporate Bond ETF (SCHJ). 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.

	SCHZ	SCHJ	Difference
Sharpe ratio: Return per unit of total volatility	1.37	2.42	-1.06
Sortino ratio: Return per unit of downside risk	2.04	3.78	-1.74
Omega ratio: Gain probability vs. loss probability	1.24	1.48	-0.24
Calmar ratio: Return relative to maximum drawdown	1.92	3.08	-1.16
Martin ratio: Return relative to average drawdown	5.87	12.17	-6.30
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SCHZ vs. SCHJ - Sharpe Ratio Comparison

The current SCHZ Sharpe Ratio is 1.37, which is lower than the SCHJ Sharpe Ratio of 2.42. The chart below compares the historical Sharpe Ratios of SCHZ and SCHJ, 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

	SCHZ	SCHJ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.37	2.42	-1.06
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.01	0.79	-0.78
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.28	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.44	0.64	-0.20

Drawdowns

SCHZ vs. SCHJ - Drawdown Comparison

The maximum SCHZ drawdown since its inception was -18.74%, which is greater than SCHJ's maximum drawdown of -13.62%. Use the drawdown chart below to compare losses from any high point for SCHZ and SCHJ.

Drawdown Indicators

	SCHZ	SCHJ	Difference
Max Drawdown Largest peak-to-trough decline	-18.74%	-13.62%	-5.12%
Max Drawdown (1Y) Largest decline over 1 year	-2.70%	-1.47%	-1.23%
Max Drawdown (3Y) Largest decline over 3 years	-6.18%	-1.47%	-4.71%
Max Drawdown (5Y) Largest decline over 5 years	-18.01%	-9.43%	-8.58%
Max Drawdown (10Y) Largest decline over 10 years	-18.74%	—	—
Current Drawdown Current decline from peak	-2.47%	-0.45%	-2.02%
Average Drawdown Average peak-to-trough decline	-3.68%	-1.88%	-1.80%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.88%	0.37%	+0.51%

Volatility

SCHZ vs. SCHJ - Volatility Comparison

Schwab U.S. Aggregate Bond ETF (SCHZ) has a higher volatility of 1.24% compared to Schwab 1-5 Year Corporate Bond ETF (SCHJ) at 0.55%. This indicates that SCHZ's price experiences larger fluctuations and is considered to be riskier than SCHJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHZ	SCHJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.24%	0.55%	+0.69%
Volatility (6M) Calculated over the trailing 6-month period	2.67%	1.35%	+1.32%
Volatility (1Y) Calculated over the trailing 1-year period	3.79%	1.87%	+1.92%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.08%	2.94%	+3.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.41%	4.13%	+1.28%

SCHZ vs. SCHJ - Expense Ratio Comparison

SCHZ has a 0.03% expense ratio, which is lower than SCHJ's 0.05% 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

SCHZ vs. SCHJ - Dividend Comparison

SCHZ's dividend yield for the trailing twelve months is around 4.12%, less than SCHJ's 4.50% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHJ Schwab 1-5 Year Corporate Bond ETF	4.50%	4.42%	4.00%	2.98%	1.64%	0.94%	2.54%	0.42%	0.00%	0.00%	0.00%	0.00%
SCHZ Schwab U.S. Aggregate Bond ETF	4.12%	4.05%	3.96%	3.28%	2.63%	2.16%	2.43%	2.79%	2.56%	2.40%	2.24%	2.11%

Frequently Asked Questions

Can I hold both SCHZ and SCHJ in my portfolio?

SCHZ and SCHJ have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCHZ or SCHJ?

SCHZ has higher volatility (1.24%) compared to SCHJ (0.55%). In terms of maximum drawdown, SCHZ dropped -18.74% vs SCHJ's -13.62%.

Which ETF is better, SCHZ or SCHJ?

On 5-year performance, SCHJ leads with 2.31% vs 0.07% for SCHZ. On fees, SCHZ is cheaper at 0.03% per year. On volatility, SCHJ has been the lower-risk option at 0.55%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHZ or SCHJ?

Over the 5-year period, SCHJ has performed better with a 2.31% return vs 0.07%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHZ or SCHJ?

SCHZ is cheaper with a 0.03% expense ratio, compared with 0.05% for SCHJ.

Which ETF pays a higher dividend yield, SCHZ or SCHJ?

SCHJ has the higher dividend yield at 4.50%, compared with 4.12% for SCHZ.

What is the main difference between SCHZ and SCHJ?

SCHZ is categorized as Total Bond Market, while SCHJ is Corporate Bonds. SCHZ tracks Bloomberg US Aggregate Bond Index, while SCHJ tracks Bloomberg US Corporate (1-5 Y). Their fees differ too: 0.03% for SCHZ and 0.05% for SCHJ.

Which has better risk-adjusted returns?

SCHJ currently has the higher Sharpe Ratio (2.42 vs 1.37), 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.