What is the primary difference between SCHO and SCHZ?

SCHO invests in short-term US Treasury debt, generally reflecting less price sensitivity to interest rate changes. In contrast, SCHZ targets intermediate core bonds, encompassing a broader range of fixed-income securities with longer average maturities. This distinction results in SCHO being associated with lower volatility and shorter duration risk, while SCHZ typically offers a slightly higher dividend yield of 4.26% versus SCHO's 3.83% in exchange for greater exposure to potential fluctuations in interest rates over time.

How do the dividend yields of SCHO and SCHZ differ?

Schwab Short-Term US Treasury ETF (SCHO) provides a dividend yield of 3.83%. Alternatively, Schwab US Aggregate Bond ETF (SCHZ) offers a slightly higher dividend yield of 4.26%. While SCHZ's higher yield might appear more attractive for income, it is generally linked to its intermediate core bond focus and greater duration risk compared to SCHO's short-term Treasury composition. Investors often weigh these yields against potential interest rate volatility inherent in their respective asset classes.

Do SCHO and SCHZ hold the same top assets?

Based on available data, there are no shared top-10 holdings between SCHO and SCHZ. SCHO is dedicated exclusively to short-term US government obligations, whereas SCHZ focuses on a diversified basket of intermediate core bonds. The absence of overlapping top positions highlights their distinct roles and diversification potential within a fixed-income portfolio. It underscores how different fund categories, such as government versus broader core bonds, provide unique market exposures rather than duplicative holdings.

Which investing goal is associated with SCHO versus SCHZ?

SCHO, focusing on short-term government securities, is often associated with goals requiring high liquidity and lower sensitivity to interest rate changes. It is commonly used to hold near-cash assets or capital preservation positions. Conversely, SCHZ, targeting intermediate core bonds, is typically associated with strategies aimed at generating a higher income yield. SCHZ accepts greater duration risk to capture this yield, while SCHO emphasises price stability and lower overall volatility within its specific niche of short-term fixed income.

How do the expense ratios of SCHO and SCHZ compare?

Both SCHO and SCHZ charge an identical expense ratio of 0.03%. This minimal fee means there is currently no cost difference between the two funds. A 0.03% expense ratio represents a very low operational cost for investors. Since both funds have identical fees, the choice is unlikely to be influenced by costs; instead, the comparison rests entirely on the specific asset allocation needs, such as duration, underlying credit quality, or the desired level of income generation.

What role do expense ratios play in long-term investment returns?

Expense ratios deduct fees directly from fund assets, impacting total returns. Both SCHO and SCHZ charge a low 0.03% fee. Because these expense ratios are identical, there is no relative cost advantage for either fund, and the absolute difference is 0 percentage points. While a 0.03% annual cost is negligible compared to potential market returns or yield differences, understanding fees is critical. In this specific case, cost minimisation is achieved equally, allowing focus to remain on the funds' underlying asset characteristics.

What are the key benefits of SCHO?

Schwab Short-Term US Treasury ETF (SCHO) offers a very low expense ratio of 0.03%, making it cost-efficient. It also possesses a substantial net asset value of $15.3 billion, providing scale and liquidity. With an inception date of August 5, 2010, it has a long-term track record. The primary benefit is its focus on short-term US government debt, generally offering lower volatility and price stability compared to longer-duration bond ETFs like SCHZ, aligning well with short-term capital preservation objectives.

What are the key benefits of SCHZ?

Schwab US Aggregate Bond ETF (SCHZ) provides a slightly higher dividend yield of 4.26% compared to SCHO's 3.83%. It charges a very low expense ratio of 0.03%, minimising operational costs for investors. SCHZ invests in intermediate core bonds, offering broader fixed-income exposure across multiple maturities. While its net assets are smaller at $10.6 billion, its category and yield are primary benefits, particularly for those seeking income potential and a more diversified fixed-income exposure compared to short-term government-only ETFs like SCHO.

How do SCHO and SCHZ differ in size?

Schwab Short-Term US Treasury ETF (SCHO) has net assets of $15.3 billion, while Schwab US Aggregate Bond ETF (SCHZ) has net assets of $10.6 billion. This difference of $4.7 billion in fund size generally translates to a higher level of liquidity for SCHO. For retail investors, both funds are large enough to facilitate trading. However, SCHO is larger in this comparison, reflecting its specific role in the short-term government fixed-income market and potentially offering deeper market liquidity.

What information is typically unavailable for these funds?

The data for both SCHO and SCHZ indicate that their tracked indexes are not available. Similarly, detailed information regarding top holdings and sector weights are not currently provided for either fund. This means investors comparing SCHO and SCHZ cannot directly assess the precise concentration risks within the portfolios or the exact benchmark methodologies through these metrics. This data gap makes it difficult to conduct a deeper, specific portfolio composition analysis, requiring investors to focus on broader fund characteristics instead.

How do fund inception dates impact their availability?

SCHO launched on August 5, 2010, while SCHZ began on July 14, 2011. The difference of approximately 11 months means SCHO has a longer operational history. However, both funds are well-established exchange-traded funds (ETFs) that have been available for over a decade, providing substantial track records for investors. These dates are far too early to be relevant in a comparison; both funds are mature and have existed long enough to weather multiple interest-rate cycles.

What is the educational purpose of this comparison?

This comparison between SCHO and SCHZ is designed to help beginners understand how to interpret ETF data. By reviewing figures such as expense ratios, net assets, and dividend yields, users learn to identify fund categories and assess market risk. The goal is to demonstrate how to read and compare information from financial data sources while avoiding the creation of assumptions about missing details, such as unavailable sector weights or top holdings, ensuring a fact-based approach to fund analysis.

SCHO vs SCHZ

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare Schwab Short-Term U.S. Treasury ETF (SCHO) and Schwab US Aggregate Bond ETF (SCHZ). Both charge a 0.03% expense ratio. SCHO focuses on short-term US government debt with a 3.83% yield, while SCHZ tracks intermediate core bonds with a 4.26% yield. Explore fees, holdings and how each fund tracks its market. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SCHO

Metric

SCHZ

0.03%

Expense Ratio

0.03%

3.83%

Dividend Yield

4.26%

$15.28B

Net Assets

$10.61B

Holdings

12,535

Aug 5, 2010

Inception Date

Jul 14, 2011

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Index Tracked

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Short Government

Fund Category

Intermediate Core Bond

Both funds charge the same annual fee.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

SCHO

Pros

The fund charges a low expense ratio of 0.03 percent.
With 15.3 billion dollars in net assets, it offers substantial scale.
It has been in existence since August 5, 2010, providing long-term track record.

Considerations

The tracked index is not available, limiting transparency on methodology.
Top holdings are not available, making it difficult to assess specific concentration risks.
Sector weights are not available, hindering detailed portfolio composition analysis.

SCHZ

Pros

The fund offers a slightly higher dividend yield of 4.26 percent.
It is in the Intermediate Core Bond category, providing broader fixed income exposure.
It charges a low expense ratio of 0.03 percent, keeping costs minimal.

Considerations

With 10.6 billion dollars in net assets, it is smaller than comparable short-term government bond funds.
The tracked index is not available, obscuring the exact benchmark used.
Top holdings and sector weights are not available, limiting insight into specific risks.

About SCHO and SCHZ

SCHO (SCHO)

The Schwab Short-Term U.S. Treasury ETF (SCHO) provides exposure to U.S. government debt with maturities of between one and three years. Designed as a lower-risk bond holding, it aims to generate income while managing sensitivity to interest rate changes more effectively than long-term treasuries. With a low expense ratio of 0.03%, this fund is a cost-efficient option for investors seeking stability within their portfolios. While it holds a dividend yield of approximately 3.83%, returns are subject to market conditions and do not come with guaranteed outcomes. As with any investment, the value of the fund can fall as well as rise, and investors should consider their own risk tolerance and financial goals before allocating funds.

SCHZ (SCHZ)

The Schwab US Aggregate Bond ETF (SCHZ) is a popular investment vehicle designed to provide broad exposure to the US investment-grade fixed-income market. It aims to track the performance of a diversified basket of bonds, including US government, corporate, and mortgage-backed securities. By holding thousands of individual bonds, this ETF helps spread risk across different issuers and sectors. Investors often consider this fund as a core component of a balanced portfolio, seeking steady income and lower volatility compared to equities. With a very low expense ratio, it offers a cost-effective way to access the bond market. However, like all bond funds, its value can fluctuate with changes in interest rates and credit conditions, meaning returns are not guaranteed.

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SCHO vs SCHZ

Fund Snapshot