SCHD vs VBK
Schwab US Dividend Equity ETF vs Vanguard Morningstar Small-Cap Growth ETF
Quick Verdict
VBK has a lower expense ratio. SCHD delivered stronger 1-year returns. VBK offers more diversification with 553 holdings.
Side-by-Side Comparison
| Metric | SCHD | VBK | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.05% | |
| AUM | $108.7B | $23.2B | |
| Dividend Yield | 3.13% | 0.45% | |
| Holdings | 104 | 553 | |
| YTD Return | +27.67% | +17.18% | |
| 1Y Return | +29.56% | +23.40% | |
| 3Y Return (annualized) | +16.53% | +17.84% | |
| 5Y Return (annualized) | +9.95% | +4.87% | |
| Volatility (annualized) | 13.6% | 19.6% | |
| Max Drawdown | -33.4% | -59.4% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Jan 26, 2004 |
SCHD vs VBK Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Morningstar Small-Cap Growth ETF (VBK) is a ETF from Vanguard (US). Over the past year SCHD returned +29.56% while VBK returned +23.40%. Year to date, SCHD is up 27.67% versus a gain of 17.18% for VBK.
Over three years, SCHD compounded at +16.53% per year against +17.84% for VBK; over five years the annualized figures are +9.95% and +4.87% respectively. Across the full 15-year window we track, SCHD has the edge at +11.55% annualized vs +9.37%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBK has been the more volatile fund, with annualized monthly volatility of 19.6% 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 -33.4% for SCHD and -59.4% for VBK. 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while VBK charges 0.05%. On a $10,000 position that is $6 vs $5 annually, a gap of $1 per year that compounds over a long holding period. On income, SCHD currently yields 3.13% against 0.45% for VBK.
Holdings Overlap
SCHD and VBK share 6 holdings out of 635 unique holdings combined, representing a 0.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or VBK?
SCHD has an expense ratio of 0.06% while VBK charges 0.05%. VBK is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, SCHD or VBK?
Over the past year SCHD returned +29.56% vs +23.40% for VBK, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.55% vs +9.37% for VBK. Past performance does not guarantee future results.
Which is riskier, SCHD or VBK?
VBK has been the more volatile fund at 19.6% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs VBK -59.4%.
Should I hold both SCHD and VBK?
SCHD and VBK have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VBK?
SCHD and VBK share 6 common holdings with a 0.7% weight overlap. Combined, they hold 635 unique securities.
Which pays a higher dividend, SCHD or VBK?
SCHD yields 3.13% while VBK yields 0.45%, so SCHD currently pays the higher dividend yield.
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