Schwab Long-Term US Treasury ETF

SCHQ

Market cap $785M

The Schwab Long-Term U.S. Treasury ETF (SCHQ) offers a slightly lower expense ratio than the iShares 10+ Year Investment Grade Corporate Bond ETF (IGLB). SCHQ provides a higher trailing-12-month dividend yield by focusing on long-dated corporate debt.

The Schwab Long-Term U.S. Treasury ETF (SCHQ) offers a slightly lower expense ratio and a lower volatility profile than the State Street SPDR Portfolio Long Term Corporate Bond ETF (SPLB). SPLB delivers a higher dividend yield than SCHQ.

Schwab Long-Term U.S. Treasury ETF offers a significantly lower expense ratio and a higher dividend yield than iShares iBoxx $ Investment Grade Corporate Bond ETF. The iShares iBoxx $ Investment Grade Corporate Bond ETF has provided stronger total returns over the last year while experiencing much less price volatility.

The Schwab Long-Term US Treasury ETF (SCHQ) faces heightened sensitivity to YTM changes due to its 13.7-year duration. Recent declines in SCHQ reflect reinflation risks and show the costs of suboptimal duration allocations in times when inflation is a key economic question. A potential Hormuz resolution could benefit duration bets, but structural risk premia and inflation momentum may persist.

SPLB and SCHQ both offer ultra-low fees, but SPLB delivers a higher dividend yield and stronger recent total returns. SCHQ holds fewer bonds and tilts entirely toward Treasuries, while SPLB focuses on investment-grade corporate bonds with much broader diversification.

SCHQ charges a much lower expense ratio and offers a slightly higher yield than TLT. SCHQ has outperformed TLT on recent 1-year and 5-year returns, while also showing a smaller maximum drawdown.

LQD charges a higher expense ratio but matches SCHQ on yield, offering a diverse corporate bond lineup versus SCHQ's focus on Treasuries. LQD experienced a milder five-year drawdown and delivered better five-year growth than SCHQ.

Schwab Long-Term U.S. Treasury ETF (SCHQ) faces risks from the debasement trade and USD reserve status uncertainty, limiting its fixed income appeal. Recent declines in long-term rates are driven by weaker economic outlooks and the Supreme Court's tariff decision, but the latter catalyst may not be so durable and could reverse. SCHQ offers significant duration exposure (13.8 years) and a lower expense ratio (0.03%) compared to TLT, so it's efficiently run at least.

SCHQ comes with a slightly lower expense ratio and focuses on long-term U.S. Treasury bonds, while SPLB targets long-term investment-grade corporate bonds. SPLB has delivered a stronger 1-year return and higher dividend yield, and has also shown a smaller maximum drawdown than SCHQ.

SCHQ is far cheaper to hold than TLT and currently offers a slightly higher yield. SCHQ has held up better over the past year and through five-year drawdowns, with less severe losses.