RTH vs SCHD
VanEck Retail ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | RTH | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.06% | |
| AUM | $250M | $103.7B | |
| Dividend Yield | 0.95% | 3.31% | |
| Holdings | 27 | 104 | |
| YTD Return | +8.09% | +26.21% | |
| 1Y Return | +9.89% | +29.99% | |
| 3Y Return (annualized) | +15.38% | +15.73% | |
| 5Y Return (annualized) | +9.58% | +9.67% | |
| Volatility (annualized) | 15.9% | 13.6% | |
| Max Drawdown | -42.4% | -33.4% | |
| Fund Family | VanEck | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Dec 20, 2011 | Oct 20, 2011 |
RTH vs SCHD Performance
VanEck Retail ETF (RTH) is a ETF from VanEck and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year RTH returned +9.89% while SCHD returned +29.99%. Year to date, RTH is up 8.09% versus a gain of 26.21% for SCHD.
Over three years, RTH compounded at +15.38% per year against +15.73% for SCHD; over five years the annualized figures are +9.58% and +9.67% respectively. Across the full 15-year window we track, SCHD has the edge at +11.50% annualized vs +9.84%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RTH has been the more volatile fund, with annualized monthly volatility of 15.9% compared with 13.6% for SCHD. 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 -42.4% for RTH and -33.4% for SCHD. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
RTH charges 0.35% per year while SCHD charges 0.06%. On a $10,000 position that is $35 vs $6 annually, a gap of $29 per year that compounds over a long holding period. On income, RTH currently yields 0.95% against 3.31% for SCHD.
Holdings Overlap
RTH and SCHD share 4 holdings out of 121 unique holdings combined, representing a 7.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, RTH or SCHD?
RTH has an expense ratio of 0.35% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, RTH or SCHD?
Over the past year RTH returned +9.89% vs +29.99% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), RTH annualized +9.84% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, RTH or SCHD?
RTH has been the more volatile fund at 15.9% annualized versus 13.6% for SCHD. Worst drawdown: RTH -42.4% vs SCHD -33.4%.
Should I hold both RTH and SCHD?
RTH and SCHD have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RTH and SCHD?
RTH and SCHD share 4 common holdings with a 7.6% weight overlap. Combined, they hold 121 unique securities.
Which pays a higher dividend, RTH or SCHD?
RTH yields 0.95% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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