USIG vs. SCHO
Compare and contrast key facts about iShares Broad USD Investment Grade Corporate Bond ETF (USIG) and Schwab Short-Term U.S. Treasury ETF (SCHO).
USIG and SCHO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. USIG is a passively managed fund by iShares that tracks the performance of the ICE BofA US Corporate. It was launched on Jan 5, 2007. SCHO is a passively managed fund by Charles Schwab that tracks the performance of the Bloomberg US Treasury (1-3 Y) (Inception 4/30/1996). It was launched on Aug 5, 2010. Both USIG and SCHO are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: USIG or SCHO.
Key characteristics
| USIG | SCHO | |
|---|---|---|
| YTD Return | 4.95% | 5.94% |
| 1Y Return | 15.13% | 9.51% |
| 3Y Return (Ann) | -1.16% | 2.71% |
| 5Y Return (Ann) | 1.08% | 2.39% |
| 10Y Return (Ann) | 2.56% | 2.17% |
| Sharpe Ratio | 2.35 | 3.99 |
| Sortino Ratio | 3.51 | 7.76 |
| Omega Ratio | 1.42 | 2.04 |
| Calmar Ratio | 0.78 | 6.40 |
| Martin Ratio | 11.90 | 38.30 |
| Ulcer Index | 1.21% | 0.24% |
| Daily Std Dev | 6.12% | 2.34% |
| Max Drawdown | -22.21% | -5.33% |
| Current Drawdown | -5.02% | -0.49% |
Correlation
The correlation between USIG and SCHO is 0.58, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
USIG vs. SCHO - Performance Comparison
In the year-to-date period, USIG achieves a 4.95% return, which is significantly lower than SCHO's 5.94% return. Over the past 10 years, USIG has outperformed SCHO with an annualized return of 2.56%, while SCHO has yielded a comparatively lower 2.17% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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USIG vs. SCHO - Expense Ratio Comparison
USIG has a 0.04% expense ratio, which is lower than SCHO'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%.
Risk-Adjusted Performance
USIG vs. SCHO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Broad USD Investment Grade Corporate Bond ETF (USIG) 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.
Dividends
USIG vs. SCHO - Dividend Comparison
USIG's dividend yield for the trailing twelve months is around 4.27%, less than SCHO's 7.07% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
USIG iShares Broad USD Investment Grade Corporate Bond ETF | 4.27% | 3.94% | 3.14% | 2.33% | 2.82% | 3.37% | 3.44% | 3.03% | 3.14% | 3.24% | 3.32% | 3.53% |
SCHO Schwab Short-Term U.S. Treasury ETF | 7.07% | 5.37% | 2.06% | 0.56% | 1.65% | 3.40% | 2.83% | 1.76% | 1.37% | 1.08% | 0.47% | 0.29% |
Drawdowns
USIG vs. SCHO - Drawdown Comparison
The maximum USIG drawdown since its inception was -22.21%, which is greater than SCHO's maximum drawdown of -5.33%. Use the drawdown chart below to compare losses from any high point for USIG and SCHO. For additional features, visit the drawdowns tool.
Volatility
USIG vs. SCHO - Volatility Comparison
iShares Broad USD Investment Grade Corporate Bond ETF (USIG) has a higher volatility of 1.25% compared to Schwab Short-Term U.S. Treasury ETF (SCHO) at 0.71%. This indicates that USIG'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.