TDTT vs. SCHO
TDTT (FlexShares iBoxx 3-Year Target Duration TIPS Index Fund) and SCHO (Schwab Short-Term U.S. Treasury ETF) are both exchange-traded funds - TDTT is a Inflation-Protected Bonds fund tracking the iBoxx 3-Year Target Duration TIPS, while SCHO is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index. Both are passively managed. Over the past 10 years, TDTT returned 3.11%/yr vs 1.71%/yr for SCHO. A 0.54 correlation means they provide meaningful diversification when combined. TDTT charges 0.18%/yr vs 0.03%/yr for SCHO.
Performance
TDTT vs. SCHO - Performance Comparison
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Returns By Period
In the year-to-date period, TDTT achieves a 1.81% return, which is significantly higher than SCHO's 0.42% return. Over the past 10 years, TDTT has outperformed SCHO with an annualized return of 3.11%, while SCHO has yielded a comparatively lower 1.71% annualized return.
TDTT
- 1D
- 0.00%
- 1M
- -0.06%
- YTD
- 1.81%
- 6M
- 1.77%
- 1Y
- 4.65%
- 3Y*
- 5.00%
- 5Y*
- 2.85%
- 10Y*
- 3.11%
SCHO
- 1D
- -0.04%
- 1M
- 0.06%
- YTD
- 0.42%
- 6M
- 0.78%
- 1Y
- 3.39%
- 3Y*
- 4.15%
- 5Y*
- 1.80%
- 10Y*
- 1.71%
TDTT vs. SCHO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TDTT FlexShares iBoxx 3-Year Target Duration TIPS Index Fund | 1.81% | 6.67% | 3.96% | 4.40% | -4.58% | 5.49% | 6.84% | 5.74% | 0.25% | 0.43% |
SCHO Schwab Short-Term U.S. Treasury ETF | 0.42% | 5.49% | 3.65% | 4.31% | -3.87% | -0.64% | 3.11% | 3.47% | 1.37% | 0.33% |
Correlation
The correlation between TDTT and SCHO is 0.62, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.62 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.74 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.69 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.60 |
Correlation (All Time) Calculated using the full available price history since Sep 26, 2011 | 0.54 |
The correlation between TDTT and SCHO shifts across timeframes, from 0.54 (all time) to 0.74 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
TDTT vs. SCHO — Risk / Return Rank
TDTT
SCHO
TDTT vs. SCHO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT) and Schwab Short-Term U.S. Treasury ETF (SCHO). 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.
| TDTT | SCHO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.06 | ||
| Sortino ratioReturn per unit of downside risk | +0.14 | ||
| Omega ratioGain probability vs. loss probability | 1.51 | 1.50 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 5.17 | 3.96 | +1.21 |
| Martin ratioReturn relative to average drawdown | 16.59 | 17.03 | -0.44 |
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
| TDTT | SCHO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.54 | 2.48 | +0.06 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.78 | 0.91 | -0.13 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.92 | 1.10 | -0.18 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.69 | 0.99 | -0.30 |
Drawdowns
TDTT vs. SCHO - Drawdown Comparison
The maximum TDTT drawdown since its inception was -6.97%, which is greater than SCHO's maximum drawdown of -5.69%. Use the drawdown chart below to compare losses from any high point for TDTT and SCHO.
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Drawdown Indicators
| TDTT | SCHO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.97% | -5.69% | -1.28% |
Max Drawdown (1Y)Largest decline over 1 year | -0.90% | -0.86% | -0.04% |
Max Drawdown (3Y)Largest decline over 3 years | -1.53% | -0.98% | -0.55% |
Max Drawdown (5Y)Largest decline over 5 years | -6.97% | -5.69% | -1.28% |
Max Drawdown (10Y)Largest decline over 10 years | -6.97% | -5.69% | -1.28% |
Current DrawdownCurrent decline from peak | -0.14% | -0.27% | +0.13% |
Average DrawdownAverage peak-to-trough decline | -1.60% | -0.61% | -0.99% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.28% | 0.20% | +0.08% |
Volatility
TDTT vs. SCHO - Volatility Comparison
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT) has a higher volatility of 0.46% compared to Schwab Short-Term U.S. Treasury ETF (SCHO) at 0.41%. This indicates that TDTT's price experiences larger fluctuations and is considered to be riskier than SCHO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TDTT | SCHO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.46% | 0.41% | +0.05% |
Volatility (6M)Calculated over the trailing 6-month period | 1.21% | 0.90% | +0.31% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.85% | 1.37% | +0.48% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.67% | 1.98% | +1.69% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.38% | 1.56% | +1.82% |
TDTT vs. SCHO - Expense Ratio Comparison
TDTT has a 0.18% expense ratio, which is higher than SCHO's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
TDTT vs. SCHO - Dividend Comparison
TDTT's dividend yield for the trailing twelve months is around 4.54%, more than SCHO's 3.91% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCHO Schwab Short-Term U.S. Treasury ETF | 3.91% | 4.06% | 4.29% | 3.76% | 1.34% | 0.41% | 1.27% | 2.27% | 1.60% | 1.12% | 0.82% | 0.68% |
TDTT FlexShares iBoxx 3-Year Target Duration TIPS Index Fund | 4.54% | 4.52% | 4.01% | 3.88% | 6.97% | 4.53% | 1.15% | 1.91% | 2.48% | 1.88% | 1.01% | 0.00% |
Frequently Asked Questions
TDTT and SCHO have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TDTT has higher volatility (0.46%) compared to SCHO (0.41%). In terms of maximum drawdown, TDTT dropped -6.97% vs SCHO's -5.69%.
On 10-year performance, TDTT leads with 3.11% vs 1.71% for SCHO. On fees, SCHO is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, TDTT has performed better with a 3.11% return vs 1.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SCHO is cheaper with a 0.03% expense ratio, compared with 0.18% for TDTT.
TDTT has the higher dividend yield at 4.54%, compared with 3.91% for SCHO.
TDTT is categorized as Inflation-Protected Bonds, while SCHO is Government Bonds. TDTT tracks iBoxx 3-Year Target Duration TIPS, while SCHO tracks Bloomberg U.S. Treasury 1-3 Year Index. They also come from different issuers: Northern Trust and Charles Schwab. Their fees differ too: 0.18% for TDTT and 0.03% for SCHO.
TDTT currently has the higher Sharpe Ratio (2.54 vs 2.48), 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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