Schwab Short-Term US Treasury ETF

SCHO

Market cap $12.1B

Both funds charge the same low expense ratio, but the Vanguard Short-Term Corporate Bond ETF is much larger by assets under management. The Schwab Short-Term U.S. Treasury ETF has delivered a smaller drawdown and lower beta, but also lower five-year growth and yield.

SCHO charges a slightly lower expense ratio and offers a higher yield than SMB. SCHO is dramatically larger and more liquid, but both funds are ultra-low risk.

ISTB charges double the expense ratio of SCHO but offers a slightly higher yield and broader bond exposure ISTB's five-year drawdowns have been deeper than SCHO's, though both funds show low volatility compared to stocks ISTB holds nearly 7,000 bonds versus SCHO's 97, leading to more diversification but also different sector tilts

IGSB charges a slightly higher expense ratio but delivers a marginally higher yield than SCHO. IGSB holds a vastly broader set of investment-grade corporate bonds, while SCHO focuses on short-term Treasuries.

BSV holds a much larger asset base and offers slightly higher recent returns than SCHO. Both ETFs incorporate federally backed bonds, which are among the safest types.

If you're holding cash and want to earn something while you wait, short-term Treasury ETFs like Schwab Short-Term U.S.

Schwab Short-Term US Treasury ETF (SCHO) delivered 4.88% yield over the past year with a 0.03% expense ratio. Inspire Advisors reduced their Schwab Treasury ETF position by 67.7% in Q3 2025 as others increased exposure.

Schwab Short-Term U.S. Treasury ETF (SCHO) offers passive exposure to 1–3 year U.S. Treasury bonds, targeting low-risk portfolio allocation. SCHO's 30-day SEC yield is 3.53%, only marginally higher than 12-month Treasury bills, but with greater duration risk. Given minimal yield advantage and potential rate volatility, I recommend selling SCHO in favor of 9–12 month Treasury bills.

Both ETFs focus on short-term bonds, but SCHO holds mainly U.S. government bonds while VCSH holds primarily corporate bonds. Schwab's ETF holds significantly more higher-rated bonds than Vanguard's fund.

Both ETFs offer identical ultra-low expense ratios, but Schwab Short-Term U.S. Treasury ETF edges out a slightly higher yield VGSH is larger by assets under management, while SCHO shows slightly lower volatility and a similar recent performance track record Portfolio holdings and sector exposures are nearly identical, with minimal quirks or hidden tilts in either fund We're bullish on these 10 stocks ›