XTWO vs. SCHO

Last updated Jun 4, 2026

XTWO (BondBloxx Bloomberg Two Year Target Duration US Treasury ETF) and SCHO (Schwab Short-Term U.S. Treasury ETF) are both Government Bonds funds - XTWO tracks the Bloomberg US Treasury 2 Year Target Duration Index while SCHO tracks the Bloomberg U.S. Treasury 1-3 Year Index. Both are passively managed. Over the past 3 years, XTWO returned 4.12%/yr vs 4.15%/yr for SCHO. Their correlation of 0.94 suggests significant overlap in exposure. XTWO charges 0.05%/yr vs 0.03%/yr for SCHO.

Performance

XTWO vs. SCHO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BondBloxx Bloomberg Two Year Target Duration US Treasury ETF (XTWO) and Schwab Short-Term U.S. Treasury ETF (SCHO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with XTWO having a 0.41% return and SCHO slightly higher at 0.42%.

XTWO

• 1D: -0.03%
• 1M: 0.08%
• YTD: 0.41%
• 6M: 0.67%
• 1Y: 3.42%
• 3Y*: 4.12%
• 5Y*: —
• 10Y*: —

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%

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

XTWO vs. SCHO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
XTWO BondBloxx Bloomberg Two Year Target Duration US Treasury ETF	0.41%	5.17%	3.92%	4.27%	0.17%
SCHO Schwab Short-Term U.S. Treasury ETF	0.42%	5.49%	3.65%	4.31%	0.18%

Correlation

The correlation between XTWO and SCHO 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	0.92
Correlation (All Time) Calculated using the full available price history since Sep 16, 2022	0.94

The correlation between XTWO and SCHO has been stable across timeframes, ranging from 0.86 to 0.94 - a consistent structural relationship.

Return for Risk

XTWO vs. SCHO — Risk / Return Rank

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

XTWO

XTWO Risk / Return Rank: 80
XTWO Sharpe Ratio Rank: 78
XTWO Sortino Ratio Rank: 90
XTWO Omega Ratio Rank: 84
XTWO Calmar Ratio Rank: 75
XTWO Martin Ratio Rank: 72

SCHO

SCHO Risk / Return Rank: 81
SCHO Sharpe Ratio Rank: 74
SCHO Sortino Ratio Rank: 88
SCHO Omega Ratio Rank: 81
SCHO Calmar Ratio Rank: 77
SCHO Martin Ratio Rank: 83

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.

XTWO vs. SCHO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BondBloxx Bloomberg Two Year Target Duration US Treasury ETF (XTWO) 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.

	XTWO	SCHO	Difference
Sharpe ratio Return per unit of total volatility	2.52	2.48	+0.03
Sortino ratio Return per unit of downside risk	4.16	4.06	+0.10
Omega ratio Gain probability vs. loss probability	1.52	1.50	+0.02
Calmar ratio Return relative to maximum drawdown	3.78	3.96	-0.19
Martin ratio Return relative to average drawdown	13.59	17.03	-3.44
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XTWO vs. SCHO - Sharpe Ratio Comparison

The current XTWO Sharpe Ratio is 2.52, which is comparable to the SCHO Sharpe Ratio of 2.48. The chart below compares the historical Sharpe Ratios of XTWO and SCHO, 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

	XTWO	SCHO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.52	2.48	+0.03
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.91	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	1.10	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.74	0.99	+0.75

Drawdowns

XTWO vs. SCHO - Drawdown Comparison

The maximum XTWO drawdown since its inception was -1.73%, smaller than the maximum SCHO drawdown of -5.69%. Use the drawdown chart below to compare losses from any high point for XTWO and SCHO.

Drawdown Indicators

	XTWO	SCHO	Difference
Max Drawdown Largest peak-to-trough decline	-1.73%	-5.69%	+3.96%
Max Drawdown (1Y) Largest decline over 1 year	-0.91%	-0.86%	-0.05%
Max Drawdown (3Y) Largest decline over 3 years	-1.18%	-0.98%	-0.20%
Max Drawdown (5Y) Largest decline over 5 years	—	-5.69%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-5.69%	—
Current Drawdown Current decline from peak	-0.38%	-0.27%	-0.11%
Average Drawdown Average peak-to-trough decline	-0.40%	-0.61%	+0.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.25%	0.20%	+0.05%

Volatility

XTWO vs. SCHO - Volatility Comparison

The current volatility for BondBloxx Bloomberg Two Year Target Duration US Treasury ETF (XTWO) is 0.36%, while Schwab Short-Term U.S. Treasury ETF (SCHO) has a volatility of 0.41%. This indicates that XTWO experiences smaller price fluctuations and is considered to be less risky than SCHO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XTWO	SCHO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.36%	0.41%	-0.05%
Volatility (6M) Calculated over the trailing 6-month period	0.95%	0.90%	+0.05%
Volatility (1Y) Calculated over the trailing 1-year period	1.37%	1.37%	0.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.16%	1.98%	+0.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.16%	1.56%	+0.60%

XTWO vs. SCHO - Expense Ratio Comparison

XTWO has a 0.05% 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

XTWO vs. SCHO - Dividend Comparison

XTWO's dividend yield for the trailing twelve months is around 4.05%, 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%
XTWO BondBloxx Bloomberg Two Year Target Duration US Treasury ETF	4.05%	4.24%	4.54%	4.07%	1.13%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both XTWO and SCHO in my portfolio?

XTWO and SCHO 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, XTWO or SCHO?

SCHO has higher volatility (0.41%) compared to XTWO (0.36%). In terms of maximum drawdown, XTWO dropped -1.73% vs SCHO's -5.69%.

Which ETF is better, XTWO or SCHO?

On 3-year performance, SCHO leads with 4.15% vs 4.12% for XTWO. 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.

Which ETF has performed better, XTWO or SCHO?

Over the 3-year period, SCHO has performed better with a 4.15% return vs 4.12%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XTWO or SCHO?

SCHO is cheaper with a 0.03% expense ratio, compared with 0.05% for XTWO.

Which ETF pays a higher dividend yield, XTWO or SCHO?

XTWO has the higher dividend yield at 4.05%, compared with 3.91% for SCHO.

What is the main difference between XTWO and SCHO?

XTWO tracks Bloomberg US Treasury 2 Year Target Duration Index, while SCHO tracks Bloomberg U.S. Treasury 1-3 Year Index. They also come from different issuers: BondBloxx and Charles Schwab. Their fees differ too: 0.05% for XTWO and 0.03% for SCHO.

Which has better risk-adjusted returns?

XTWO currently has the higher Sharpe Ratio (2.52 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.