SCHI

Schwab 5-10 Year Corporate Bond ETF

TREND FOLLOWING PERFORMANCE HISTORY

2026-09-11

Executive Summary

The quantitative backtest for SCHI (Schwab 5-10 Year Corporate Bond ETF) using the Excess Return SMA* strategy in a Investing context demonstrated its primary role in risk mitigation, experiencing a maximum drawdown of -10.2% (compared to the benchmark's drawdown of -19.8%). Over the evaluated period, this protective approach generated a Compound Annual Growth Rate (CAGR) of 1.2%, compared to a Buy-and-Hold benchmark return of 0.7%. The strategy executed 1 total trades.

* Excess Return SMA: Advanced Single Moving Average model utilizing custom duration weighting and dynamic Stop Loss limits.

📊 Strategy Model 4 Models Available

Compare quantitative moving average overlays for SCHI:

Excess Return MMA

Advanced Ensemble: Uses multiple signal layers for maximum trend stability and noise reduction.

Excess Return MMA CA

Advanced Dynamic Sleeve: MMA ensemble signals on the primary asset combined with a momentum-based cash alternative ETF rotation.

Excess Return SMA Active Model

Standard Signal: Classical quantitative trend following optimized for reliable directionality.

Moving Average (50/200)

Moving Average: The baseline 50/200-day crossover model used by technical analysts worldwide.

🎯 Trading Horizon

Select risk profile & execution style for SCHI:

🛡️ Long-Term Investing Active Horizon

Ideal for wealth preservation and multi-year horizons. Optimized for low turnover and tax efficiency.

⚔️ Tactical Trading

Ideal for active capital rotation and momentum-first accounts. Optimized for high sensitivity to price shifts.

Switch to MMA to enable

🛡️ SCHI Drawdown Shield & Downside Protection

Why Drawdown Dictates Longevity →

Peak Drawdown Defense

-10.2% (vs -19.8% B&H)

+9.5% shallower drawdown

Downside Efficiency

0.34 Sortino

+0.18 vs 0.16 B&H

Capital Sheltered from Risk

47.0% of Time

Earning Treasury yield during downturns

* Drawdown Shield demonstrates how systematic trend-following bounded historical drawdowns and protected principal capital compared to passive Buy & Hold.

📊 SCHI Quality Metrics & KPI Summary

Metric	1Y		5Y		Full
	Strategy	B&H	Strategy	B&H	Strategy	B&H
Max Drawdown	-3.32%	-3.32%	-10.25%	-20.45%	-10.25%	-19.75%
Sharpe Ratio	-0.28	-0.28	0.33	0.07	0.33	0.10
Sortino Ratio	-0.43	-0.43	0.33	0.11	0.34	0.16
CAGR	-1.14%	-1.14%	1.23%	0.48%	1.24%	0.69%
% Time Invested	100.0%	100.0%	52.4%	100.0%	53.0%	100.0%
Trades / Year	0.0	0.0	0.2	0.0	0.2	0.0

Cumulative Growth Performance

Hydrating Performance Trajectory... Loading historical performance data

Figure 1: Cumulative Trajectory Analysis. Logarithmic growth comparison of SCHI under the Excess Return SMA strategy (Investing) versus Buy & Hold. The strategy produced a 1.2% CAGR with a -10.2% Max Drawdown across 1 trade signals (compared to Buy & Hold's 0.7% CAGR and -19.8% Max Drawdown).

Histogram of monthly return distribution for SCHI under Excess Return SMA strategy in Investing context, illustrating downside risk mitigation and return skewness. — **Figure 2: Monthly Return Distribution Profile.** Monthly return distribution for **SCHI** under **Excess Return SMA** (Investing). Visualizes return frequency, volatility clustering, and tail-risk truncation relative to standard buy-and-hold returns.

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Top Diversifiers for SCHI

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Top 5 non-correlated asset sleeves evaluated on 1Y daily percentage returns (Pearson r). Compare them side-by-side in Compare Studio to analyze portfolio diversification.

Diversifier Asset	Category	1Y Correlation (r)	Action
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Trade History

This log shows every signal-driven transition. Completed trades reflect standard market cycles. An Open or Mark-to-Market exit denotes an active position (either in the primary asset or a cash/yield sleeve) valued at the current price for reporting purposes. Interest entries record yield accrued from cash or cash alternatives (like BIL) during out-of-market defensive periods.

Entry Date	Exit Date	Type	Allocation	Entry Price	Exit Price	Net Return %	Exit Reason
🔒 Active Positions & Recent Execution Signals Hidden Trading on delayed data carries high execution risk. Current allocations, pending next-day rebalances, and active execution signals (last 60 days) require a Premium subscription. Subscribe to Unlock
2022-04-11	2024-08-05	Interest (CASH)	100%	$1.00	$1.11	10.73%	Interest Income
2021-10-06	2022-04-11	Completed	100%	$21.07	$18.99	-9.89%	Signal
2021-10-04	2021-10-06	Interest (CASH)	100%	$1.00	$1.00	0.00%	Interest Income

Next Steps: Portfolio Integration & Comparative Analysis

Single-ticker trend following is designed to truncate tail risk inside a broader portfolio. View where SCHI ranks across 40+ tracked assets, evaluate correlation against non-correlated diversifiers, or model it inside a custom all-weather asset mix.

📊 View Full 40-Asset Backtest Matrix → 🛠️ Build Custom Portfolio with SCHI → ⚖️ Compare SCHI vs Non-Correlated Assets →