SCHZ vs. SCHM
SCHZ (Schwab U.S. Aggregate Bond ETF) and SCHM (Schwab US Mid-Cap ETF) are both exchange-traded funds - SCHZ is a Total Bond Market fund tracking the Bloomberg US Aggregate Bond Index, while SCHM is a Mid Cap Blend Equities fund tracking the Dow Jones US Total Stock Market Mid-Cap. Both are passively managed. Over the past 10 years, SCHZ returned 1.50%/yr vs 11.64%/yr for SCHM. At a correlation of -0.05, they often move in opposite directions. SCHZ charges 0.03%/yr vs 0.04%/yr for SCHM.
Performance
SCHZ vs. SCHM - Performance Comparison
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Returns By Period
In the year-to-date period, SCHZ achieves a 0.51% return, which is significantly lower than SCHM's 20.08% return. Over the past 10 years, SCHZ has underperformed SCHM with an annualized return of 1.50%, while SCHM has yielded a comparatively higher 11.64% annualized return.
SCHZ
- 1D
- -0.13%
- 1M
- 0.48%
- YTD
- 0.51%
- 6M
- 0.93%
- 1Y
- 4.88%
- 3Y*
- 4.17%
- 5Y*
- 0.02%
- 10Y*
- 1.50%
SCHM
- 1D
- 1.09%
- 1M
- 4.25%
- YTD
- 20.08%
- 6M
- 18.66%
- 1Y
- 34.69%
- 3Y*
- 17.18%
- 5Y*
- 8.05%
- 10Y*
- 11.64%
SCHZ vs. SCHM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SCHZ Schwab U.S. Aggregate Bond ETF | 0.51% | 7.24% | 1.26% | 5.60% | -13.17% | -1.72% | 7.46% | 8.65% | -0.26% | 3.50% |
SCHM Schwab US Mid-Cap ETF | 20.08% | 10.17% | 11.98% | 16.69% | -17.07% | 19.36% | 15.26% | 27.48% | -8.77% | 19.60% |
Correlation
The correlation between SCHZ and SCHM is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.36 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.28 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.19 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.05 |
Correlation (All Time) Calculated using the full available price history since Jul 14, 2011 | -0.05 |
The correlation between SCHZ and SCHM shifts across timeframes, from -0.05 (all time) to 0.36 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
SCHZ vs. SCHM — Risk / Return Rank
SCHZ
SCHM
SCHZ vs. SCHM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Aggregate Bond ETF (SCHZ) and Schwab US Mid-Cap ETF (SCHM). 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.
| SCHZ | SCHM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.84 | ||
| Sortino ratioReturn per unit of downside risk | -1.05 | ||
| Omega ratioGain probability vs. loss probability | 1.21 | 1.35 | -0.14 |
| Calmar ratioReturn relative to maximum drawdown | 1.66 | 3.52 | -1.86 |
| Martin ratioReturn relative to average drawdown | 4.89 | 14.11 | -9.21 |
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Drawdowns
SCHZ vs. SCHM - Drawdown Comparison
The maximum SCHZ drawdown since its inception was -18.74%, smaller than the maximum SCHM drawdown of -42.43%. Use the drawdown chart below to compare losses from any high point for SCHZ and SCHM.
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Drawdown Indicators
| SCHZ | SCHM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.74% | -42.43% | +23.69% |
Max Drawdown (1Y)Largest decline over 1 year | -2.70% | -9.32% | +6.62% |
Max Drawdown (3Y)Largest decline over 3 years | -6.18% | -23.27% | +17.09% |
Max Drawdown (5Y)Largest decline over 5 years | -18.01% | -26.46% | +8.45% |
Max Drawdown (10Y)Largest decline over 10 years | -18.74% | -42.43% | +23.69% |
Current DrawdownCurrent decline from peak | -2.26% | 0.00% | -2.26% |
Average DrawdownAverage peak-to-trough decline | -3.68% | -5.65% | +1.97% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.92% | 2.33% | -1.41% |
Volatility
SCHZ vs. SCHM - Volatility Comparison
The current volatility for Schwab U.S. Aggregate Bond ETF (SCHZ) is 1.34%, while Schwab US Mid-Cap ETF (SCHM) has a volatility of 5.66%. This indicates that SCHZ experiences smaller price fluctuations and is considered to be less risky than SCHM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SCHZ | SCHM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.34% | 5.66% | -4.32% |
Volatility (6M)Calculated over the trailing 6-month period | 2.76% | 12.39% | -9.63% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.77% | 16.16% | -12.39% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.09% | 19.65% | -13.56% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.42% | 20.50% | -15.08% |
SCHZ vs. SCHM - Expense Ratio Comparison
SCHZ has a 0.03% expense ratio, which is lower than SCHM's 0.04% 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. SCHM - Dividend Comparison
SCHZ's dividend yield for the trailing twelve months is around 4.11%, more than SCHM's 1.21% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCHM Schwab US Mid-Cap ETF | 1.21% | 1.46% | 1.43% | 1.50% | 1.67% | 1.13% | 1.31% | 1.48% | 1.56% | 1.27% | 1.51% | 1.54% |
SCHZ Schwab U.S. Aggregate Bond ETF | 4.11% | 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
SCHZ and SCHM have a correlation of 0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SCHM has higher volatility (5.66%) compared to SCHZ (1.34%). In terms of maximum drawdown, SCHZ dropped -18.74% vs SCHM's -42.43%.
On 10-year performance, SCHM leads with 11.64% vs 1.50% for SCHZ. On fees, SCHZ is cheaper at 0.03% per year. On volatility, SCHZ has been the lower-risk option at 1.34%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SCHM has performed better with a 11.64% return vs 1.50%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SCHZ is cheaper with a 0.03% expense ratio, compared with 0.04% for SCHM.
SCHZ has the higher dividend yield at 4.11%, compared with 1.21% for SCHM.
SCHZ is categorized as Total Bond Market, while SCHM is Mid Cap Blend Equities. SCHZ tracks Bloomberg US Aggregate Bond Index, while SCHM tracks Dow Jones US Total Stock Market Mid-Cap. Their fees differ too: 0.03% for SCHZ and 0.04% for SCHM.
SCHM currently has the higher Sharpe Ratio (2.03 vs 1.19), 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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