SCHD vs VBF
SCHD vs VBF
Schwab US Dividend Equity ETF vs Invesco Bond Fund
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. VBF offers more diversification with 1017 holdings.
Side-by-Side Comparison
| Metric | SCHD | VBF | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.54% | |
| AUM | $103.7B | $4,400.74 | |
| Dividend Yield | 3.31% | 5.07% | |
| Holdings | 104 | 1,492 | |
| YTD Return | +24.26% | -1.13% | |
| 1Y Return | +31.38% | +0.15% | |
| 3Y Return (annualized) | +15.08% | +5.16% | |
| 5Y Return (annualized) | +9.72% | -1.89% | |
| Volatility (annualized) | 13.6% | 10.5% | |
| Max Drawdown | -33.4% | -41.6% | |
| Fund Family | Charles Schwab Asset Management | Invesco (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Oct 28, 1970 |
SCHD vs VBF Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Invesco Bond Fund (VBF) is a ETF from Invesco (US). Over the past year SCHD returned +31.38% while VBF returned +0.15%. Year to date, SCHD is up 24.26% versus a loss of 1.13% for VBF.
Over three years, SCHD compounded at +15.08% per year against +5.16% for VBF; over five years the annualized figures are +9.72% and -1.89% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs -0.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 10.5% for VBF. 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 -41.6% for VBF. 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while VBF charges 0.54%. On a $10,000 position that is $6 vs $54 annually, a gap of $48 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 5.07% for VBF.
Holdings Overlap
SCHD and VBF share 0 holdings out of 1117 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or VBF?
SCHD has an expense ratio of 0.06% while VBF charges 0.54%. SCHD is the cheaper option. On a $10,000 investment, that is $48 per year of difference.
Which performed better, SCHD or VBF?
Over the past year SCHD returned +31.38% vs +0.15% for VBF, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs -0.06% for VBF. Past performance does not guarantee future results.
Which is riskier, SCHD or VBF?
SCHD has been the more volatile fund at 13.6% annualized versus 10.5% for VBF. Worst drawdown: SCHD -33.4% vs VBF -41.6%.
Should I hold both SCHD and VBF?
SCHD and VBF have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VBF?
SCHD and VBF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1117 unique securities.
Which pays a higher dividend, SCHD or VBF?
SCHD yields 3.31% while VBF yields 5.07%, so VBF currently pays the higher dividend yield.
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