SCHR vs XTRE

SCHRASchwab Intermediate-Term U.S. Treasury ETF

XTREABondBloxx Bloomberg Three 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.

XTRE Most intermediate Treasury ETFs pick a maturity range and let duration drift. XTRE picks the number: a portfolio rebuilt monthly toward roughly three years of duration, from the issuer that launched the first target-duration Treasury suite.

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.

XTRE The Fund seeks to track an index of U.S. Treasury securities whose duration is between 2 and 4 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.

• XTRE Five basis points, about a third of what the typical intermediate Treasury fund in its group charges.
• The mandate is a duration number, not a maturity band. Monthly rebalancing blends two Treasury duration buckets back toward the three-year target, so drift gets corrected for you.sec.govbondbloxxetf.com
• Straight US Treasuries, no credit or mortgage filler, and the portfolio hews unusually closely to that stated mandate for this peer group.
• Distributions land monthly rather than quarterly.

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.

• XTRE Cheap, not cheapest: two of the strongest funds in this cohort (SPTI, SCHR) run at 0.03%.
• Roughly three years of duration sits at the short end of a 3-10 year cohort, so it moves less per shift in rates than longer peers, in both directions.
• A 2022 launch from a boutique issuer, with a modest asset base and moderate trading volume, so spreads can widen when markets get hectic.

Full SCHR profile⁠

Full XTRE profile⁠