SCHZ vs. SCHY

Last updated Jun 4, 2026

SCHZ (Schwab U.S. Aggregate Bond ETF) and SCHY (Schwab International Dividend Equity ETF) are both exchange-traded funds - SCHZ is a Total Bond Market fund tracking the Bloomberg US Aggregate Bond Index, while SCHY is a Dividend fund tracking the Dow Jones International Dividend 100 Index. Both are passively managed. Over the past 5 years, SCHZ returned 0.07%/yr vs 7.96%/yr for SCHY. At a 0.29 correlation, their price movements are largely independent. SCHZ charges 0.03%/yr vs 0.08%/yr for SCHY.

Performance

SCHZ vs. SCHY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab U.S. Aggregate Bond ETF (SCHZ) and Schwab International Dividend Equity ETF (SCHY). 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 SCHY's 7.94% 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%

SCHY

• 1D: -0.93%
• 1M: 0.50%
• YTD: 7.94%
• 6M: 10.00%
• 1Y: 22.39%
• 3Y*: 15.09%
• 5Y*: 7.96%
• 10Y*: —

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

SCHZ vs. SCHY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
SCHZ Schwab U.S. Aggregate Bond ETF	0.30%	7.24%	1.26%	5.60%	-13.17%	1.07%
SCHY Schwab International Dividend Equity ETF	7.94%	33.98%	-1.79%	14.27%	-9.43%	4.08%

Correlation

The correlation between SCHZ and SCHY is 0.45, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.45
Correlation (3Y) Calculated over the trailing 3-year period	0.40
Correlation (5Y) Calculated over the trailing 5-year period	0.28
Correlation (All Time) Calculated using the full available price history since Apr 30, 2021	0.29

The correlation between SCHZ and SCHY shifts across timeframes, from 0.28 (5 years) to 0.45 (1 year), reflecting how their relationship changes across market environments.

SCHZ vs. SCHY - Sectors Allocation Comparison

Sectors	SCHZ	SCHY
Financial Services	8.3%	15.8%
Technology	3.0%	3.8%
Healthcare	2.3%	4.0%
Utilities	2.1%	7.4%
Communication Services	2.1%	15.8%
Industrials	1.7%	13.8%
Consumer Cyclical	1.4%	7.9%
Energy	1.3%	10.3%
Consumer Defensive	1.1%	14.8%
Real Estate	0.8%	0.9%
Basic Materials	0.4%	5.7%

Return for Risk

SCHZ vs. SCHY — 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

SCHY

SCHY Risk / Return Rank: 51
SCHY Sharpe Ratio Rank: 54
SCHY Sortino Ratio Rank: 52
SCHY Omega Ratio Rank: 53
SCHY Calmar Ratio Rank: 49
SCHY Martin Ratio Rank: 47

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. SCHY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Aggregate Bond ETF (SCHZ) and Schwab International Dividend Equity ETF (SCHY). 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	SCHY	Difference
Sharpe ratio: Return per unit of total volatility	1.37	1.89	-0.53
Sortino ratio: Return per unit of downside risk	2.04	2.59	-0.55
Omega ratio: Gain probability vs. loss probability	1.24	1.34	-0.10
Calmar ratio: Return relative to maximum drawdown	1.92	2.47	-0.55
Martin ratio: Return relative to average drawdown	5.87	7.90	-2.02
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. SCHY - Sharpe Ratio Comparison

The current SCHZ Sharpe Ratio is 1.37, which is comparable to the SCHY Sharpe Ratio of 1.89. The chart below compares the historical Sharpe Ratios of SCHZ and SCHY, 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	SCHY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.37	1.89	-0.53
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.01	0.60	-0.59
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	0.66	-0.22

Drawdowns

SCHZ vs. SCHY - Drawdown Comparison

The maximum SCHZ drawdown since its inception was -18.74%, smaller than the maximum SCHY drawdown of -24.04%. Use the drawdown chart below to compare losses from any high point for SCHZ and SCHY.

Drawdown Indicators

	SCHZ	SCHY	Difference
Max Drawdown Largest peak-to-trough decline	-18.74%	-24.04%	+5.30%
Max Drawdown (1Y) Largest decline over 1 year	-2.70%	-9.11%	+6.41%
Max Drawdown (3Y) Largest decline over 3 years	-6.18%	-12.16%	+5.98%
Max Drawdown (5Y) Largest decline over 5 years	-18.01%	-24.04%	+6.03%
Max Drawdown (10Y) Largest decline over 10 years	-18.74%	—	—
Current Drawdown Current decline from peak	-2.47%	-5.13%	+2.66%
Average Drawdown Average peak-to-trough decline	-3.68%	-4.97%	+1.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.88%	2.84%	-1.96%

Volatility

SCHZ vs. SCHY - Volatility Comparison

The current volatility for Schwab U.S. Aggregate Bond ETF (SCHZ) is 1.24%, while Schwab International Dividend Equity ETF (SCHY) has a volatility of 3.41%. This indicates that SCHZ experiences smaller price fluctuations and is considered to be less risky than SCHY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHZ	SCHY	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.24%	3.41%	-2.17%
Volatility (6M) Calculated over the trailing 6-month period	2.67%	9.79%	-7.12%
Volatility (1Y) Calculated over the trailing 1-year period	3.79%	11.90%	-8.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.08%	13.25%	-7.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.41%	13.23%	-7.82%

SCHZ vs. SCHY - Expense Ratio Comparison

SCHZ has a 0.03% expense ratio, which is lower than SCHY's 0.08% 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. SCHY - Dividend Comparison

SCHZ's dividend yield for the trailing twelve months is around 4.12%, more than SCHY's 3.44% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHY Schwab International Dividend Equity ETF	3.44%	3.55%	4.64%	3.97%	3.67%	1.73%	0.00%	0.00%	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 SCHY in my portfolio?

SCHZ and SCHY have a correlation of 0.45, 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 SCHY?

SCHY has higher volatility (3.41%) compared to SCHZ (1.24%). In terms of maximum drawdown, SCHZ dropped -18.74% vs SCHY's -24.04%.

Which ETF is better, SCHZ or SCHY?

On 5-year performance, SCHY leads with 7.96% vs 0.07% for SCHZ. On fees, SCHZ is cheaper at 0.03% per year. On volatility, SCHZ has been the lower-risk option at 1.24%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHZ or SCHY?

Over the 5-year period, SCHY has performed better with a 7.96% 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 SCHY?

SCHZ is cheaper with a 0.03% expense ratio, compared with 0.08% for SCHY.

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

SCHZ has the higher dividend yield at 4.12%, compared with 3.44% for SCHY.

What is the main difference between SCHZ and SCHY?

SCHZ is categorized as Total Bond Market, while SCHY is Dividend. SCHZ tracks Bloomberg US Aggregate Bond Index, while SCHY tracks Dow Jones International Dividend 100 Index. Their fees differ too: 0.03% for SCHZ and 0.08% for SCHY.

Which has better risk-adjusted returns?

SCHY currently has the higher Sharpe Ratio (1.89 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.