SCHR vs UTEN

SCHRASchwab Intermediate-Term U.S. Treasury ETF

UTENBUS Treasury 10 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.

UTEN Most Treasury funds hand you a basket spanning 3 to 10 years. UTEN tracks an index built on one bond, the current 10-year note, refreshed as new ones come to auction, with income paid out monthly.

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.

UTEN The fund seeks, before fees and expenses, to generally match the price and yield performance of the ICE BofA Current 10-Year US Treasury Index (GA10). It normally invests at least 80% of net assets in securities comprising that 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.

• UTEN One bond, one point on the curve. The index holds the current 10-year Treasury note, so your rate exposure stays pinned there instead of drifting around a 3-to-10-year blend.
• Treasury notes pay a coupon twice a year. This wrapper passes income through monthly, which suits anyone running a cash-flow calendar.
• 0.15% a year sits right at the median for intermediate Treasury funds, and the fund has stayed very close to its one-bond benchmark.

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.

• UTEN Precision has a price. SPTI and SCHR charge 0.03% for broad 3-to-10-year Treasury exposure, roughly a fifth of what this one costs.
• Full 10-year duration, undiluted. Sitting at the long end of this group means bigger price moves when yields shift than shorter-dated Treasury funds see.
• It trades lighter than the household-name Treasury ETFs, so bid-ask spreads can run wider than the volume leaders'.

Full SCHR profile⁠

Full UTEN profile⁠