SCHD vs VCIT
SCHD vs VCIT
Schwab US Dividend Equity ETF vs Vanguard Intermediate Term Corporate Bond ETF
Quick Verdict
VCIT has a lower expense ratio. SCHD delivered stronger 1-year returns. VCIT offers more diversification with 2019 holdings.
Side-by-Side Comparison
| Metric | SCHD | VCIT | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $103.7B | $67.3B | |
| Dividend Yield | 3.31% | 4.77% | |
| Holdings | 104 | 2,253 | |
| YTD Return | +24.26% | -0.43% | |
| 1Y Return | +31.38% | +2.34% | |
| 3Y Return (annualized) | +15.08% | +5.82% | |
| 5Y Return (annualized) | +9.72% | +0.84% | |
| Volatility (annualized) | 13.6% | 6.0% | |
| Max Drawdown | -33.4% | -20.7% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Nov 19, 2009 |
SCHD vs VCIT Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US). Over the past year SCHD returned +31.38% while VCIT returned +2.34%. Year to date, SCHD is up 24.26% versus a loss of 0.43% for VCIT.
Over three years, SCHD compounded at +15.08% per year against +5.82% for VCIT; over five years the annualized figures are +9.72% and +0.84% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +1.75%. 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 6.0% for VCIT. 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 -20.7% for VCIT. 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while VCIT charges 0.03%. On a $10,000 position that is $6 vs $3 annually, a gap of $3 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 4.77% for VCIT.
Holdings Overlap
SCHD and VCIT share 0 holdings out of 2119 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 VCIT?
SCHD has an expense ratio of 0.06% while VCIT charges 0.03%. VCIT is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHD or VCIT?
Over the past year SCHD returned +31.38% vs +2.34% for VCIT, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs +1.75% for VCIT. Past performance does not guarantee future results.
Which is riskier, SCHD or VCIT?
SCHD has been the more volatile fund at 13.6% annualized versus 6.0% for VCIT. Worst drawdown: SCHD -33.4% vs VCIT -20.7%.
Should I hold both SCHD and VCIT?
SCHD and VCIT have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VCIT?
SCHD and VCIT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2119 unique securities.
Which pays a higher dividend, SCHD or VCIT?
SCHD yields 3.31% while VCIT yields 4.77%, so VCIT currently pays the higher dividend yield.
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