PAB vs SCHZ
PGIM Active Aggregate Bond ETF vs Schwab US Aggregate Bond ETF
Which is better, PAB or SCHZ?
Nearly the same fund. SCHZ costs less.
SCHZ has a lower expense ratio. PAB led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.99.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | PAB | SCHZ |
|---|---|---|
| Expense Ratio | 0.19% | 0.03%Best |
| AUM | $98M | $10.6B |
| Dividend Yield | 5.50% | 4.33% |
| Holdings | 466 | 24,843 |
| YTD Return | -2.03%Best | -2.13% |
| 1Y Return | -1.81%Best | -1.99% |
| 3Y Return (annualized) | +4.98%Best | +4.41% |
| 5Y Return (annualized) | -0.45%Best | -0.63% |
| Volatility (annualized) | 6.4% | 6.3%Best |
| Max Drawdown | -19.3% | -18.0%Best |
| $10,000 over 5 years | $9,777Best | $9,689 |
| Fund Family | PGIM Investments | Charles Schwab Asset Management |
| Category | Fixed Income | Fixed Income |
| Inception | Apr 12, 2021 | Jul 14, 2011 |
Not shown on this pair: Top 10 Weight, Style.
Volatility and max drawdown are measured over the window both funds cover: Apr 15, 2021 to Oct 14, 2026 (5.5 years).
PAB vs SCHZ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5.5 years both funds cover.
PAB vs SCHZ Performance
PGIM Active Aggregate Bond ETF (PAB) is an ETF from PGIM Investments and Schwab US Aggregate Bond ETF (SCHZ) is an ETF from Charles Schwab Asset Management. Over the past year PAB returned -1.81% while SCHZ returned -1.99%. Year to date, PAB is down 2.03% versus a loss of 2.13% for SCHZ.
Over three years, PAB compounded at +4.98% per year against +4.41% for SCHZ; over five years the annualized figures are -0.45% and -0.63% respectively. Across the full 6-year window we track, PAB has the edge at -0.23% annualized vs -0.42%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PAB has been the more volatile fund, with annualized monthly volatility of 6.4% compared with 6.3% for SCHZ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -19.3% for PAB and -18.0% for SCHZ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.99. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
PAB charges 0.19% per year while SCHZ charges 0.03%. On a $10,000 position that is $19 vs $3 annually, a gap of $16 per year that compounds over a long holding period. On income, PAB currently yields 5.50% against 4.33% for SCHZ.
Holdings Overlap
We hold position weights for 301 holdings in PAB and 10,307 in SCHZ, totalling 64.9% and 61.5% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 220 positions appear in both.
220 positions in common, counted across the 301 positions we hold weights for in PAB and 10,307 in SCHZ, against full books of 466 and 24,843.
Top Shared Holdings
| Stock | Weight in PAB | Weight in SCHZ | Difference |
|---|---|---|---|
| T 3.125 08/31/29United States Treasuryu.S. Treasury Notes 08/31/2029 | 5.92% | 0.11% | 5.81% |
| T 2 11/15/41Us Treas Bds 2% 11/15/41 | 1.72% | 0.13% | 1.59% |
| T 3.5 01/31/28Us Treasury N/B 3.375 01/31/2028 | 1.41% | 0.36% | 1.05% |
| T 1.25 08/15/31U.S. Treasury Note, 1.25%, Due 08/15/2031 | 1.17% | 0.31% | 0.86% |
| T 3 02/15/49Government Of The United States Of America 3.0% 15-Feb-2049 | 1.28% | 0.10% | 1.18% |
| T 3.25 05/15/42Us Treas Bds 3.25% 05/15/42 | 1.06% | 0.09% | 0.97% |
| T 4.75 11/15/53Us Treasury N/B 4.75 11/15/2053 | 0.95% | 0.19% | 0.76% |
| FR SD8004Freddie Mac Pool | 1.13% | 0.00% | 1.13% |
| T 1.875 11/15/51Government Of The United States Of America 1.875% 15-Nov-2051 | 1.01% | 0.11% | 0.90% |
| T 4.5 12/31/31U.S. Treasury Note, 4.50%, Due 12/31/2031 | 0.90% | 0.14% | 0.76% |
You are not choosing between two funds in isolation.
Whichever of PAB and SCHZ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PAB or SCHZ?
PAB has an expense ratio of 0.19% while SCHZ charges 0.03%. SCHZ is the cheaper option, by $16 a year on a $10,000 investment.
Which performed better, PAB or SCHZ?
Over the past year PAB returned -1.81% vs -1.99% for SCHZ, so PAB leads on 1-year performance. Over the longest common window we track (6 years), PAB annualized -0.23% vs -0.42% for SCHZ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PAB or SCHZ?
PAB has been the more volatile fund at 6.4% annualized versus 6.3% for SCHZ. Worst drawdown: PAB -19.3% vs SCHZ -18.0%.
Should I hold both PAB and SCHZ?
PAB and SCHZ have a monthly-return correlation of 0.99, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, PAB or SCHZ?
PAB yields 5.50% while SCHZ yields 4.33%, so PAB currently pays the higher dividend yield.
Is SCHZ better than PAB?
SCHZ has a lower expense ratio. PAB led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.99. Which one suits a particular account depends on what it is for. This is information, not a recommendation.