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ETF Comparison

BND vs SCHD: Which Is the Better Pick in 2026?

A head-to-head comparison of Vanguard Total Bond Market ETF and Schwab U.S. Dividend Equity ETF covering yield, cost, risk, and income potential.

Data updated August 14, 2026

Best for

  • BNDInvestors who want higher current income (4.17% vs 2.93% for SCHD).
  • SCHDInvestors who want a quality-dividend tilt rather than the whole market.

Jump to the side-by-side numbers

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricBNDSCHD
Full nameVanguard Total Bond Market ETFSchwab U.S. Dividend Equity ETF
IssuerVanguardSchwab
Last Close$72.31 as of August 14, 2026$34.52 as of August 14, 2026
Distribution yield4.17%2.93%
Distribution Safety Score™ 100100
Expense ratio0.03%0.06%
AUM$161B$106B
Distribution frequencyMonthlyQuarterly
Underlying indexBloomberg U.S. Aggregate Float Adjusted IndexDow Jones U.S. Dividend 100 Index
ObjectiveTrack the Bloomberg U.S. Aggregate Float Adjusted Index for broad U.S. bond exposure.Seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100 Index, which measures the performance of high dividend yielding stocks issued by U.S. companies with a record of consistently paying dividends, selected for fundamental strength relative to their peers based on financial ratios.
Asset classFixed IncomeEquity
Inception date04/03/200710/20/2011
Beta0.980.56
Last dividend$0.2515$0.2525
Ex-dividend date08/03/202606/24/2026

Bottom lineChoose BND if you want higher current income (4.17% vs 2.93% for SCHD). Choose SCHD if you want a quality-dividend tilt rather than the whole market.

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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

Vanguard
ETFs116
Total AUM$4658B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

See our curated list of related YouTube videos on BND.

See all Vanguard ETFs
Schwab
ETFs34
Total AUM$605B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Schwab is a major provider of low-cost, broad-based ETFs known for making investing accessible to individual investors through its discount brokerage platform. The issuer's fund lineup spans multiple categories including core index funds, dividend and income-focused strategies, factor-based approaches, international exposure, fixed income, and digital assets, with popular core holdings like SCHB (U.S. broad market) and SCHD (dividend appreciation) alongside more specialized thematic offerings. Schwab's ETF suite is characterized by its breadth across asset classes and investment styles, competitive expense ratios, and integration with its retail brokerage ecosystem.

See our curated list of related YouTube videos on SCHD.

See all Schwab ETFs

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

BND has lagged SCHD over the trailing twelve months, posting a 1.65% total return against 30.33%. The lead holds up over 10 years too: SCHD has compounded at 12.94% a year, against 1.33% for BND. BND has been the steadier holding, though — annualized volatility of 5.2% against 13.2% for SCHD. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD1Y3Y5Y10YSince Oct 2011Volatility Sharpe Sortino Max drawdown
BND-0.39%1.65%4.26%-0.37%1.33%1.93%5.2%-0.06-0.08-4.7%
SCHD26.54%30.33%15.81%9.72%12.94%13.60%13.2%0.781.13-16.1%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 14, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Oct 2011” measures every fund from October 20, 2011 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

BND (Vanguard Total Bond Market ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both dividend ETFs, but they take different approaches.

BND offers the higher yield at 4.17% vs 2.93% for SCHD. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

BND is cheaper with an expense ratio of 0.03% compared to 0.06%.

They track different benchmarks: BND is linked to Bloomberg U.S. Aggregate Float Adjusted Index while SCHD tracks Dow Jones U.S. Dividend 100 Index, which means their performance drivers differ.

BND is the larger fund by assets ($161B), which generally means tighter spreads and better liquidity.

Who should choose each?

Choose BND

Vanguard Total Bond Market ETF

  • Want higher current income — BND yields 4.17% vs 2.93% for SCHD.
  • Want fixed-income ballast that cushions equity drawdowns.
  • Want to keep costs low — a 0.03% expense ratio vs 0.06% for SCHD.

Choose SCHD

Schwab U.S. Dividend Equity ETF

  • Want a quality-dividend tilt — screened payers rather than the broad index.
  • Prefer lower volatility — a beta of 0.6 vs 1.0 for BND.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

Deep dive

Yield & income

On a $10,000 investment, BND would generate roughly $34.75/month, while SCHD would produce $24.42/month, at current distribution rates.

BND yield4.17%
SCHD yield2.93%
Monthly diff on $10K$10.33

Cost & efficiency

Over 10 years on $10,000, BND would cost approximately $30 in fees vs $60 for SCHD (simplified, not compounded). The $30.00 difference may be offset by yield or performance.

BND ER0.03%
SCHD ER0.06%

Strategy & risk

BND tracks Bloomberg U.S. Aggregate Float Adjusted Index with a bonds approach, while SCHD tracks Dow Jones U.S. Dividend 100 Index. Beta is 0.98 for BND and 0.56 for SCHD, indicating SCHD is less volatile relative to the market.

BND beta0.98
SCHD beta0.56

Fund details

BND is managed by Vanguard (launched 04/03/2007) with $161B in assets. SCHD is managed by Schwab (launched 10/20/2011) with $106B in assets.

BND AUM$161B
SCHD AUM$106B
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Frequently asked questions

What is the current distribution yield for BND and SCHD?

BND currently distributes 4.17% and SCHD 2.93%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is BND or SCHD better for dividend income?

It depends on your goals. BND currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between BND and SCHD?

BND (Vanguard Total Bond Market ETF) tracks Bloomberg U.S. Aggregate Float Adjusted Index with a bonds approach, while SCHD (Schwab U.S. Dividend Equity ETF) tracks Dow Jones U.S. Dividend 100 Index. They are issued by Vanguard and Schwab respectively.

Can I hold both BND and SCHD?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is BND or SCHD safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — they are effectively tied: BND scores 100, SCHD scores 100. Neither has a clear safety edge on that measure. SCHD has also shown lower price volatility (beta 0.56 vs 0.98 for BND). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, BND or SCHD?

BND has an expense ratio of 0.03% while SCHD charges 0.06%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in BND vs SCHD generate?

At current rates, $10,000 in BND would generate roughly $34.75 per month ($417.00 annually). The same in SCHD would produce about $24.42 per month ($293.00 annually).

Which has performed better historically, BND or SCHD?

BND has lagged SCHD over the trailing twelve months, posting a 1.65% total return against 30.33%. The lead holds up over 10 years too: SCHD has compounded at 12.94% a year, against 1.33% for BND. BND has been the steadier holding, though — annualized volatility of 5.2% against 13.2% for SCHD. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

BND vs SCHD — at a glance

Generated August 15, 2026.

Overview

BND is a broad U.S. investment-grade bond ETF tracking the Bloomberg Aggregate Index, while SCHD is a large-cap U.S. dividend equity ETF tracking the Dow Jones U.S. Dividend 100 Index. The comparison is between fixed income and equities — fundamentally different asset classes with opposite yield drivers and risk characteristics. BND offers bond yields; SCHD offers dividend yields plus capital appreciation potential.

How they differ

BND and SCHD operate in separate markets: BND holds Treasury, government agency, corporate, and mortgage-backed securities; SCHD holds 100 large-cap dividend-paying stocks. That structural difference drives everything else. BND yields 4.17% from coupon income paid monthly, while SCHD yields 2.93% from dividends distributed quarterly, with equity capital appreciation (or depreciation) as a second return source. BND has a beta of 0.98, meaning it moves almost in line with the broader bond market; SCHD has a beta of 0.56, suggesting it moves less than the S&P 500, likely because high-dividend stocks tend to be less volatile than the overall market. Both carry minimal expense ratios (0.03% and 0.06%, respectively), though BND's $161B in AUM dwarfs SCHD's $106B.

Who each is best for

BND: Investors building a fixed-income anchor for a portfolio who want predictable, monthly coupon income from a diversified mix of bonds and can tolerate interest-rate risk without seeking equity upside.

SCHD: Investors comfortable with equity ownership who prioritize stable dividend income and lower volatility than the broader stock market, with an orientation toward large-cap firms that have a history of consistent dividend payments.

Key risks to know

  • Interest-rate risk (BND): Bond prices fall when rates rise. A significant move higher in Treasury yields would erode BND's NAV, potentially wiping out several months' worth of coupon income if sold before maturity.
  • Credit risk (BND): The fund holds corporate and mortgage-backed securities. Economic deterioration or widening credit spreads could depress valuations of lower-rated bonds held within the aggregate index.
  • Equity market drawdown (SCHD): While SCHD's lower beta suggests less downside in a market decline, it's still an equity fund. A prolonged bear market would reduce both dividend payments (if firms cut) and share price.
  • Dividend sustainability (SCHD): High-dividend stocks may cut or suspend dividends during recessions. The fund's index selection criteria ("fundamental strength") aim to reduce this risk but do not eliminate it.
  • Yield curve flattening (BND): A sustained period of low long-term yields relative to short-term rates would compress reinvestment income and depress total returns, even if the existing holdings hold to maturity.

Bottom line

BND suits investors seeking stable, predictable income from bonds with minimal reinvestment decisions; SCHD suits those wanting equity exposure combined with meaningful dividend income and lower volatility than the broader market. The choice hinges on whether you're anchoring a portfolio with fixed income or seeking equity dividends as a return source. Past performance does not guarantee future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

Bond fund basics How to read a fund's stats Why total return beats chasing yield

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