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ETF Comparison

BND vs SCHD: A Bond Core, or a Dividend Equity Screen?

A head-to-head of Vanguard's Total Bond Market ETF and Schwab's U.S. Dividend Equity ETF covering asset class, cost, and job.

Updated September 30, 2026

How these figures are calculated: methodology.

Best for

  • BNDInvestors who want higher current income (4.25% vs 3.28% for SCHD).
  • SCHDInvestors who want a quality-dividend tilt rather than the whole market.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

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

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

BND has lagged SCHD over the trailing twelve months, posting a -1.89% total return against 24.24%. The lead holds up over 10 years too: SCHD has compounded at 12.52% a year, against 1.07% for BND. BND has been the steadier holding, though — annualized volatility of 5.1% 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.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Oct 2011Volatility Sharpe Sortino Max drawdown
BND-2.69%-1.89%4.28%-0.66%1.07%1.75%5.1%-0.06-0.08-4.7%
SCHD20.19%24.24%15.79%9.12%12.52%13.08%13.2%0.781.13-16.1%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 30, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Oct 2011” measures every fund from October 20, 2011 — the start of shared available history — 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.

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
Underlying indexBloomberg U.S. Aggregate Float Adjusted IndexDow Jones U.S. Dividend 100 Index
Last Close$70.15 as of September 30, 2026$32.53 as of September 30, 2026
Distribution rate4.25%3.28%
Trailing 12-month yield4.53%3.24%
Distribution Safety Score™ 100100
Safety-Adjusted Yield 4.25%3.28%
Expense ratio0.03%0.06%
AUM$162B$110B
Distribution frequencyMonthlyQuarterly
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$0.2485 declared, pays 10/05/2026$0.2665
Ex-dividend date10/01/2026 upcoming09/23/2026

Bottom lineChoose BND if you want higher current income (4.25% vs 3.28% for SCHD). Choose SCHD if you want a quality-dividend tilt rather than the whole market.

BND vs SCHD: bonds or dividend equities?

Opposite asset classes. BND is investment-grade bonds. SCHD is a US dividend-quality screen.

BNDSCHD
Asset classUS investment-grade bondsUS dividend equities
Expense ratio0.03%0.06%
Distribution rate4.25%3.28%
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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$4677B

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
ETFs33
Total AUM$612B

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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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 4.25% vs 3.28% 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 have different reference exposures: BND is linked to Bloomberg U.S. Aggregate Float Adjusted Index while SCHD is linked to Dow Jones U.S. Dividend 100 Index, which means their performance drivers differ.

BND is the larger fund by assets ($162B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose BND

Vanguard Total Bond Market ETF

  • Want higher current income — BND yields 4.25% vs 3.28% 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 $35.42 cash per distribution, while SCHD would produce $82.00 cash per distribution, at current distribution rates.

BND yield4.25%
SCHD yield3.28%
Cash diff on $10K$46.58

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, making SCHD the less volatile of the two by this measure.

BND beta0.98
SCHD beta0.56

Fund details

BND is managed by Vanguard (launched 04/03/2007) with $162B in assets. SCHD is managed by Schwab (launched 10/20/2011) with $110B in assets.

BND AUM$162B
SCHD AUM$110B
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Frequently asked questions

What is the difference between BND and SCHD?

Opposite asset classes. BND (Vanguard Total Bond Market ETF) holds US investment-grade bonds. SCHD (Schwab U.S. Dividend Equity ETF) screens US dividend payers for quality. Cost is 0.03% versus 0.06%; distributions are 4.25% and 3.28% as of September 2026. Bonds versus dividend equities is the decision, not a yield race.

What is the current distribution rate for BND and SCHD?

BND currently distributes 4.25% and SCHD 3.28%, based on fund data updated September 2026. Distribution rate 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.

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 $35.42 cash per distribution ($425.00 annually). The same in SCHD would produce about $82.00 cash per distribution ($328.00 annually).

Which has performed better historically, BND or SCHD?

BND has lagged SCHD over the trailing twelve months, posting a -1.89% total return against 24.24%. The lead holds up over 10 years too: SCHD has compounded at 12.52% a year, against 1.07% for BND. BND has been the steadier holding, though — annualized volatility of 5.1% 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 September 26, 2026.

Overview

BND tracks the broad U.S. investment-grade bond market—roughly 10,000 securities spanning Treasuries, investment-grade corporates, and mortgage-backed securities. SCHD focuses on 100 large-cap U.S. stocks with consistent dividend-paying histories and relative financial strength, selected from the Dow Jones U.S. Dividend 100 Index.

How they differ

BND and SCHD operate in entirely different markets. The largest single difference is volatility: BND has a beta of 0.98, moving almost in lockstep with the overall bond market, while SCHD's beta of 0.56 signals substantially lower price swings relative to broad equities—though it will still fluctuate more than bonds over market cycles. Both are efficiently run, but BND's 0.03% expense ratio slightly undercuts SCHD's 0.06%, and BND's $162B asset base dwarfs SCHD's $110B, reflecting BND's role as a foundational bond holding for many portfolios.

Key risks to know

  • Interest rate sensitivity (BND): When rates rise, bond prices fall. A portfolio of intermediate and long-duration bonds will see NAV declines in a rising-rate environment; the longer the holding period, the more likely the bond matures at par and offsets the mark-to-market loss, but short-term holders face mark-to-market pressure.
  • Equity drawdown (SCHD): Although SCHD's low beta suggests less volatility than the S&P 500, it remains an equity fund and will decline in market downturns. Dividend-paying stocks have historically lagged the broader market in recoveries.
  • Credit risk (BND): The fund holds roughly 10,000 investment-grade corporate and mortgage-backed securities. Downgrades or defaults, though rare in investment-grade indexes, would compress spreads and erode NAV; the 2008 financial crisis and mortgage credit events illustrate tail risks in the MBS sleeve.
  • Dividend sustainability (SCHD): The index selects for high yield and consistent payout history, but dividends are not guaranteed. Economic slowdown or earnings pressure could force dividend cuts among holdings.
  • Concentration risk (SCHD): Holding only 100 stocks exposes the fund to single-name and sector idiosyncrasies within the dividend universe; overlapping holdings may amplify exposure to financial and consumer staples sectors.

Bottom line

If you want predictable coupon income and minimal price swings, BND's broad bond exposure and 4.25% yield suit defensive allocations. If you prioritize equity growth with dividend income and can tolerate equity-market volatility, SCHD's 3.28% yield and lower beta offer a middle ground between bonds and broad stock indexes. Neither is a substitute for the other—they serve different portfolio roles. Past performance does not predict 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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These comparisons follow the Dividend Vision methodology.