SCHR vs UFIV

SCHRASchwab Intermediate-Term U.S. Treasury ETF

UFIVBUS Treasury 5 Year Note ETF

In short

SCHR The belly of the Treasury curve for three basis points. Since 2010, SCHR has tracked the Bloomberg US Treasury 3-10 Year Index: government paper only, no corporate credit, income paid monthly.

UFIV One bond, one ticker. UFIV holds the most recently auctioned 5-year Treasury note and rolls into the new one at each auction, pinning you to a single point on the curve instead of a blended bucket of maturities.

Stated mandate

SCHR The fund seeks to track, before fees and expenses, the total return of an index measuring the intermediate-term U.S. Treasury bond market.

UFIV The fund seeks results that generally correspond to the performance of its benchmark, the Bloomberg US Treasury Bellwether 5Y Total Return USD Unhedged Index.

Why people hold it

• SCHR Charges 0.03% a year, a fraction of the 0.15% median for intermediate Treasury funds. In a corner of the market where yields do the heavy lifting, fee drag matters.
• Does exactly what the label says: about 100 US Treasury notes, tracking the Bloomberg US Treasury 3-10 Year Index with very tight fidelity. No credit sleeve, no derivatives detour.schwabassetmanagement.com
• Pays monthly, and it is an actively traded, multi-billion-dollar fund, which puts it among the more established options in the 3-10 year Treasury aisle.
• One of the strongest implementations in its peer group, matching SPTI at the bottom of the fee table and undercutting BBIB and the BondBloxx target-duration funds.

• UFIV Single-security design: it owns the current on-the-run 5-year Treasury note and rolls automatically at each new auction, so the exposure stays at the 5-year tenor.fminvest.com
• Aims to pay dividends at least monthly, a more frequent cadence than the semiannual coupons on the underlying note.fminvest.com
• Tracks its Bloomberg 5Y Treasury bellwether index tightly, which is the whole job when the benchmark is effectively one bond.

Worth knowing

• SCHR Intermediate maturities carry real rate sensitivity. When yields rise, prices on 3-10 year Treasuries fall, and this fund holds the full move.
• Treasuries only. You get no credit spread from corporate or mortgage bonds, which is the point for some investors and a limit for others.schwabassetmanagement.com
• SPTI runs the same 0.03% fee on the same slice of the curve, so the choice often comes down to brokerage plumbing rather than the funds themselves.

• UFIV 0.15% a year sits at the category median, but broad intermediate Treasury baskets like SPTI and SCHR charge 0.03%.
• One holding means no spread across maturities: the price tracks the 5-year yield in both directions, with duration parked near five years.fminvest.com
• A small, thinly traded fund, so bid-ask spreads carry more weight at the moment of the trade than they do in the giant Treasury ETFs.

Full SCHR profile⁠

Full UFIV profile⁠