ZCBG vs. SCHO

Last updated Jun 6, 2026

ZCBG (Global X Zero Coupon Bond 2035 ETF) and SCHO (Schwab Short-Term U.S. Treasury ETF) are both Government Bonds funds - ZCBG tracks the FTSE Zero Coupon U.S. Treasury STRIPS 2035 Maturity Index while SCHO tracks the Bloomberg U.S. Treasury 1-3 Year Index. Both are passively managed. A 0.78 correlation means they provide meaningful diversification when combined. ZCBG charges 0.07%/yr vs 0.03%/yr for SCHO.

Performance

ZCBG vs. SCHO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Global X Zero Coupon Bond 2035 ETF (ZCBG) and Schwab Short-Term U.S. Treasury ETF (SCHO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

ZCBG

• 1D: -0.61%
• 1M: -1.32%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

SCHO

• 1D: -0.21%
• 1M: -0.23%
• YTD: 0.29%
• 6M: 0.69%
• 1Y: 3.17%
• 3Y*: 4.10%
• 5Y*: 1.78%
• 10Y*: 1.70%

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

ZCBG vs. SCHO - Yearly Performance Comparison

	2026 (YTD)
ZCBG Global X Zero Coupon Bond 2035 ETF	-1.00%
SCHO Schwab Short-Term U.S. Treasury ETF	0.29%

Correlation

The correlation between ZCBG and SCHO is 0.78, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jan 8, 2026	0.78

Return for Risk

ZCBG vs. SCHO — Risk / Return Rank

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

SCHO

SCHO Risk / Return Rank: 78
SCHO Sharpe Ratio Rank: 72
SCHO Sortino Ratio Rank: 84
SCHO Omega Ratio Rank: 79
SCHO Calmar Ratio Rank: 75
SCHO Martin Ratio Rank: 81

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.

ZCBG vs. SCHO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Global X Zero Coupon Bond 2035 ETF (ZCBG) 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	ZCBG	SCHO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	2.30	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.90	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	1.09	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.39	0.99	-1.37

Drawdowns

ZCBG vs. SCHO - Drawdown Comparison

The maximum ZCBG drawdown since its inception was -5.11%, smaller than the maximum SCHO drawdown of -5.69%. Use the drawdown chart below to compare losses from any high point for ZCBG and SCHO.

Drawdown Indicators

	ZCBG	SCHO	Difference
Max Drawdown Largest peak-to-trough decline	-5.11%	-5.69%	+0.58%
Max Drawdown (1Y) Largest decline over 1 year	—	-0.86%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-0.98%	—
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	-3.89%	-0.39%	-3.50%
Average Drawdown Average peak-to-trough decline	-1.99%	-0.61%	-1.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.20%	—

Volatility

Volatility by Period

	ZCBG	SCHO	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.45%	—
Volatility (6M) Calculated over the trailing 6-month period	—	0.93%	—
Volatility (1Y) Calculated over the trailing 1-year period	6.33%	1.39%	+4.94%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.33%	1.98%	+4.35%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.33%	1.56%	+4.77%

ZCBG vs. SCHO - Expense Ratio Comparison

ZCBG has a 0.07% 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

ZCBG vs. SCHO - Dividend Comparison

ZCBG's dividend yield for the trailing twelve months is around 1.74%, less 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%
ZCBG Global X Zero Coupon Bond 2035 ETF	1.74%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ZCBG and SCHO in my portfolio?

ZCBG and SCHO have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ZCBG or SCHO?

On fees, SCHO is cheaper at 0.03% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ZCBG or SCHO?

SCHO is cheaper with a 0.03% expense ratio, compared with 0.07% for ZCBG.

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

SCHO has the higher dividend yield at 3.91%, compared with 1.74% for ZCBG.

What is the main difference between ZCBG and SCHO?

ZCBG tracks FTSE Zero Coupon U.S. Treasury STRIPS 2035 Maturity Index, while SCHO tracks Bloomberg U.S. Treasury 1-3 Year Index. They also come from different issuers: Global X and Charles Schwab. Their fees differ too: 0.07% for ZCBG and 0.03% for SCHO.