SCHD vs VBR
Schwab US Dividend Equity ETF vs Vanguard Morningstar Small-Cap Value ETF
Which is better, SCHD or VBR?
Large Cap Value against Small Cap Value.
VBR has a lower expense ratio. SCHD led over 1Y, 5Y and the full window, VBR over 3Y. VBR is less concentrated, with 5.9% of the fund in its ten largest positions against 41.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SCHD | VBR |
|---|---|---|
| Expense Ratio | 0.06% | 0.05%Best |
| AUM | $112.1B | $37.3B |
| Dividend Yield | 3.00% | 1.76% |
| Holdings | 103 | 847 |
| YTD Return | +25.84%Best | +13.48% |
| 1Y Return | +30.18%Best | +17.09% |
| 3Y Return (annualized) | +16.08% | +16.11%Best |
| 5Y Return (annualized) | +9.97%Best | +9.28% |
| Volatility (annualized) | 13.6%Best | 17.7% |
| Max Drawdown | -33.4%Best | -47.0% |
| $10,000 over 5 years | $16,083Best | $15,585 |
| Top 10 Weight | 41.8% | 5.9%Best |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Small Cap Value |
| Inception | Oct 20, 2011 | Jan 26, 2004 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 15, 2026 (14.9 years).
SCHD vs VBR growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 14.9 years both funds cover.
SCHD vs VBR Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and Vanguard Morningstar Small-Cap Value ETF (VBR) is an ETF from Vanguard (US). Over the past year SCHD returned +30.18% while VBR returned +17.09%. Year to date, SCHD is up 25.84% versus a gain of 13.48% for VBR.
Over three years, SCHD compounded at +16.08% per year against +16.11% for VBR; over five years the annualized figures are +9.97% and +9.28% respectively. Across the full 15-year window we track, SCHD has the edge at +11.40% annualized vs +10.59%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBR has been the more volatile fund, with annualized monthly volatility of 17.7% 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 -47.0% for VBR. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 3.00% against 1.76% for VBR.
Holdings Overlap
6.1% of SCHD's money is in holdings VBR also owns. 4.3% of VBR's money is in holdings SCHD also owns.
SCHD and VBR share little of their money.
The two holdings books were reported 62 days apart, SCHD as of Aug 31, 2026 and VBR as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
38 positions in common, counted across the 100 positions we hold weights for in SCHD and 836 in VBR, against full books of 103 and 847.
What only one of them owns
Our book lists 765 positions for VBR that do not appear in our book for SCHD (92.3% of the fund), and 62 for SCHD that do not appear in VBR (93.9%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in VBR | Difference |
|---|---|---|---|
| EWBCEast West Bancorp, Inc. | 0.42% | 0.38% | 0.04% |
| GISGeneral Mills In | 0.54% | 0.20% | 0.34% |
| BBYBest Buy Co. Inc. | 0.38% | 0.32% | 0.06% |
| BRBroadridge Financial Solutions, Inc. | 0.51% | 0.17% | 0.34% |
| APAApa Corp | 0.37% | 0.25% | 0.12% |
| DINOHF Sinclair Corp | 0.38% | 0.23% | 0.15% |
| FNFFidelity Nationa | 0.29% | 0.26% | 0.03% |
| SWKSSkyworks Solutions Inc. | 0.25% | 0.22% | 0.03% |
| AFGAmerican Financial Group Inc/Oh | 0.24% | 0.20% | 0.04% |
| ORIOld Republic International Corp | 0.23% | 0.19% | 0.04% |
You are not choosing between two funds in isolation.
Whichever of SCHD and VBR you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $1 a year on a $10,000 investment.
Which performed better, SCHD or VBR?
Over the past year SCHD returned +30.18% vs +17.09% for VBR, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.40% vs +10.59% for VBR. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or VBR?
VBR has been the more volatile fund at 17.7% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs VBR -47.0%.
Should I hold both SCHD and VBR?
SCHD and VBR have a monthly-return correlation of 0.87, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between SCHD and VBR?
6.1% of SCHD's money is in holdings VBR also owns. 4.3% of VBR's is in holdings SCHD also owns. They hold 38 positions in common, counted across the 100 positions we hold weights for in SCHD and 836 in VBR.
Which pays a higher dividend, SCHD or VBR?
SCHD yields 3.00% while VBR yields 1.76%, so SCHD currently pays the higher dividend yield.
Is VBR better than SCHD?
VBR has a lower expense ratio. SCHD led over 1Y, 5Y and the full window, VBR over 3Y. VBR is less concentrated, with 5.9% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.