SCHD vs VB
Schwab US Dividend Equity ETF vs Vanguard Morningstar Small-Cap ETF
Quick Verdict
VB has a lower expense ratio. SCHD delivered stronger 1-year returns. VB offers more diversification with 1,311 holdings.
Side-by-Side Comparison
| Metric | SCHD | VB | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $108.7B | $79.7B | |
| Dividend Yield | 3.13% | 1.22% | |
| Holdings | 104 | 1,311 | |
| YTD Return | +28.70% | +17.31% | |
| 1Y Return | +32.27% | +26.06% | |
| 3Y Return (annualized) | +17.27% | +17.80% | |
| 5Y Return (annualized) | +10.23% | +8.25% | |
| Volatility (annualized) | 13.7% | 18.9% | |
| Max Drawdown | -33.4% | -61.0% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Jan 26, 2004 |
SCHD vs VB Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Morningstar Small-Cap ETF (VB) is a ETF from Vanguard (US). Over the past year SCHD returned +32.27% while VB returned +26.06%. Year to date, SCHD is up 28.70% versus a gain of 17.31% for VB.
Over three years, SCHD compounded at +17.27% per year against +17.80% for VB; over five years the annualized figures are +10.23% and +8.25% respectively. Across the full 15-year window we track, SCHD has the edge at +11.63% annualized vs +8.82%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VB has been the more volatile fund, with annualized monthly volatility of 18.9% compared with 13.7% 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 -33.4% for SCHD and -61.0% for VB. 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while VB charges 0.03%. On a $10,000 position that is $6 vs $3 annually, a gap of $3 per year that compounds over a long holding period. On income, SCHD currently yields 3.13% against 1.22% for VB.
Holdings Overlap
SCHD and VB share 40 holdings out of 1361 unique holdings combined, representing a 2.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or VB?
SCHD has an expense ratio of 0.06% while VB charges 0.03%. VB is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHD or VB?
Over the past year SCHD returned +32.27% vs +26.06% for VB, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.63% vs +8.82% for VB. Past performance does not guarantee future results.
Which is riskier, SCHD or VB?
VB has been the more volatile fund at 18.9% annualized versus 13.7% for SCHD. Worst drawdown: SCHD -33.4% vs VB -61.0%.
Should I hold both SCHD and VB?
SCHD and VB have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VB?
SCHD and VB share 40 common holdings with a 2.8% weight overlap. Combined, they hold 1361 unique securities.
Which pays a higher dividend, SCHD or VB?
SCHD yields 3.13% while VB yields 1.22%, so SCHD currently pays the higher dividend yield.
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