BND vs SCHD
Vanguard Total Bond Market Index Fund vs Schwab U.S. Dividend Equity ETF
Last updated: 2026-04-02
Vanguard Total Bond Market Index Fund (BND) is an exchange-traded fund issued by Vanguard that provides exposure to the broad U.S. investment-grade bond market. It charges a very low expense ratio of 0.03%. The fund offers an attractive dividend yield of 3.93%. Launched in 2007, the fund has a 19-year track record.
Schwab U.S. Dividend Equity ETF (SCHD) is an exchange-traded fund issued by Schwab that provides exposure to U.S. dividend-paying stocks selected for yield or dividend growth. It charges a low expense ratio of 0.06%. The fund offers an attractive dividend yield of 3.46%. Launched in 2011, the fund has a 15-year track record.
Quick Verdict
BND has a slightly lower expense ratio (0.03% vs 0.06%), saving about $60 per $10,000 over 10 years. Over the past year, SCHD has significantly outperformed with a 9.5% return vs -0.0%.
Key Metrics
Performance Chart
Indexed to 100 at start (5-year comparison)
Performance Comparison
Fee Impact Over Time
Estimated fee cost difference assuming 8% annual returns
Risk Metrics
Based on 5 years of daily returns
Dividend Comparison
Top Holdings
SCHD Top Holdings
| Name | Weight |
|---|---|
| Chevron CorporationCVX | 4.66% |
| ConocoPhillipsCOP | 4.33% |
| Merck & Co., Inc.MRK | 4.08% |
| Verizon Communications Inc.VZ | 4.03% |
| The Coca-Cola CompanyKO | 3.98% |
| Texas Instruments IncorporatedTXN | 3.86% |
| PepsiCo, Inc.PEP | 3.83% |
| Amgen Inc.AMGN | 3.78% |
| Abbott LaboratoriesABT | 3.78% |
| The Procter & Gamble CompanyPG | 3.70% |
Which One Should You Choose?
Choose BND if...
you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.
Choose SCHD if...
recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.
Choose BND if...
you prioritize dividend income and want higher regular distributions from your portfolio.