SCHD vs VBR
Schwab US Dividend Equity ETF vs Vanguard Morningstar Small-Cap Value ETF
Quick Verdict
VBR has a lower expense ratio. SCHD delivered stronger 1-year returns. VBR offers more diversification with 847 holdings.
Side-by-Side Comparison
| Metric | SCHD | VBR | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.05% | |
| AUM | $108.7B | $37.3B | |
| Dividend Yield | 3.13% | 1.76% | |
| Holdings | 104 | 847 | |
| YTD Return | +28.70% | +16.97% | |
| 1Y Return | +31.07% | +21.92% | |
| 3Y Return (annualized) | +16.88% | +16.80% | |
| 5Y Return (annualized) | +10.20% | +9.69% | |
| Volatility (annualized) | 13.7% | 19.0% | |
| Max Drawdown | -33.4% | -64.0% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Jan 26, 2004 |
SCHD vs VBR Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Morningstar Small-Cap Value ETF (VBR) is a ETF from Vanguard (US). Over the past year SCHD returned +31.07% while VBR returned +21.92%. Year to date, SCHD is up 28.70% versus a gain of 16.97% for VBR.
Over three years, SCHD compounded at +16.88% per year against +16.80% for VBR; over five years the annualized figures are +10.20% and +9.69% respectively. Across the full 15-year window we track, SCHD has the edge at +11.62% annualized vs +7.98%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBR has been the more volatile fund, with annualized monthly volatility of 19.0% 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 -64.0% for VBR. 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while VBR 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 1.76% for VBR.
Holdings Overlap
SCHD and VBR share 38 holdings out of 897 unique holdings combined, representing a 4.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or VBR?
SCHD has an expense ratio of 0.06% while VBR charges 0.05%. VBR is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, SCHD or VBR?
Over the past year SCHD returned +31.07% vs +21.92% for VBR, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.62% vs +7.98% for VBR. Past performance does not guarantee future results.
Which is riskier, SCHD or VBR?
VBR has been the more volatile fund at 19.0% annualized versus 13.7% for SCHD. Worst drawdown: SCHD -33.4% vs VBR -64.0%.
Should I hold both SCHD and VBR?
SCHD and VBR have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VBR?
SCHD and VBR share 38 common holdings with a 4.3% weight overlap. Combined, they hold 897 unique securities.
Which pays a higher dividend, SCHD or VBR?
SCHD yields 3.13% while VBR yields 1.76%, so SCHD currently pays the higher dividend yield.
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