SCHR vs XFIV

SCHRASchwab Intermediate-Term U.S. Treasury ETF

XFIVABondBloxx Bloomberg Five Year Target Duration US Treasury 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.

XFIV Most "intermediate" Treasury funds sort bonds by maturity and let their interest-rate sensitivity wander. XFIV pins it down: two duration buckets, blended every month, to hold the portfolio near the five-year point on the curve.

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.

XFIV The Fund seeks to track an index of U.S. Treasury securities with duration between 4 and 6 years.

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.

• XFIV Duration is the product, not a byproduct. The index blends two buckets of 4-to-6 year Treasuries and rebalances monthly to hold an average duration near five years.sec.gov
• 0.05% a year, a third of the typical fee among intermediate Treasury funds.
• Nothing to underwrite but Uncle Sam. Government paper only, no credit or mortgage detours, and it holds up as one of the stronger implementations in its peer group.
• Pays monthly, part of a 2022 BondBloxx suite spanning eight duration targets from six months to twenty years.prnewswire.com

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.

• XFIV Cheap, not the floor: SPTI and SCHR charge 0.03% for broad intermediate Treasury exposure.
• Five years of duration cuts both ways: roughly a 5% price move for every 1 point shift in rates, in either direction.
• Moderately traded rather than a volume giant, and the duration target is only reset at each monthly rebalance, so it can drift in between.sec.gov

Full SCHR profile⁠

Full XFIV profile⁠