SCHD vs VCEB
Schwab US Dividend Equity ETF vs Vanguard ESG US Corporate Bond ETF
Which is better, SCHD or VCEB?
SCHD has been ahead.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.
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 | VCEB |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.12% |
| AUM | $112.1B | $1.2B |
| Dividend Yield | 3.00% | 4.78% |
| Holdings | 103 | 2,721 |
| YTD Return | +23.46%Best | -4.57% |
| 1Y Return | +27.20%Best | -4.27% |
| 3Y Return (annualized) | +15.41%Best | +3.74% |
| 5Y Return (annualized) | +10.16%Best | -1.02% |
| Volatility (annualized) | 15.2% | 7.3%Best |
| Max Drawdown | -16.9%Best | -21.7% |
| $10,000 over 5 years | $16,223Best | $9,500 |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Value | - |
| Inception | Oct 20, 2011 | Sep 22, 2020 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 24, 2020 to Sep 18, 2026 (6 years).
SCHD vs VCEB 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 6 years both funds cover.
SCHD vs VCEB Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and Vanguard ESG US Corporate Bond ETF (VCEB) is an ETF from Vanguard (US). Over the past year SCHD returned +27.20% while VCEB returned -4.27%. Year to date, SCHD is up 23.46% versus a loss of 4.57% for VCEB.
Over three years, SCHD compounded at +15.41% per year against +3.74% for VCEB; over five years the annualized figures are +10.16% and -1.02% respectively. Across the full 6-year window we track, SCHD has the edge at +14.78% annualized vs -0.56%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 15.2% compared with 7.3% for VCEB. 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 -16.9% for SCHD and -21.7% for VCEB. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.53. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SCHD charges 0.06% per year while VCEB charges 0.12%. On a $10,000 position that is $6 vs $12 annually, a gap of $6 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 4.78% for VCEB.
You are not choosing between two funds in isolation.
Whichever of SCHD and VCEB 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 VCEB?
SCHD has an expense ratio of 0.06% while VCEB charges 0.12%. SCHD is the cheaper option, by $6 a year on a $10,000 investment.
Which performed better, SCHD or VCEB?
Over the past year SCHD returned +27.20% vs -4.27% for VCEB, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), SCHD annualized +14.78% vs -0.56% for VCEB. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or VCEB?
SCHD has been the more volatile fund at 15.2% annualized versus 7.3% for VCEB. Worst drawdown: SCHD -16.9% vs VCEB -21.7%.
Should I hold both SCHD and VCEB?
SCHD and VCEB have a monthly-return correlation of 0.53, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, SCHD or VCEB?
SCHD yields 3.00% while VCEB yields 4.78%, so VCEB currently pays the higher dividend yield.
Is VCEB better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.