SCHD vs VCLN

Quick Verdict

SCHD has a lower expense ratio. VCLN delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: VCLNMore Diversified: SCHD

Side-by-Side Comparison

MetricSCHDVCLNWinner
Expense Ratio0.06%0.59%
AUM$103.7B$5M
Dividend Yield3.31%1.44%
Holdings10445
YTD Return+25.33%+8.43%
1Y Return+32.31%+39.36%
3Y Return (annualized)+15.40%+14.94%
5Y Return (annualized)+9.70%+2.99%
Volatility (annualized)13.6%27.4%
Max Drawdown-33.4%-45.7%
Fund FamilyCharles Schwab Asset ManagementVirtus Investment Partners
CategoryEquityEquity
InceptionOct 20, 2011Aug 3, 2021

SCHD vs VCLN Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Virtus Duff & Phelps Clean Energy ETF (VCLN) is a ETF from Virtus Investment Partners. Over the past year SCHD returned +32.31% while VCLN returned +39.36%. Year to date, SCHD is up 25.33% versus a gain of 8.43% for VCLN.

Over three years, SCHD compounded at +15.40% per year against +14.94% for VCLN; over five years the annualized figures are +9.70% and +2.99% respectively. Across the full 5-year window we track, SCHD has the edge at +11.45% annualized vs +3.09%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VCLN has been the more volatile fund, with annualized monthly volatility of 27.4% 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 -45.7% for VCLN. 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while VCLN charges 0.59%. On a $10,000 position that is $6 vs $59 annually, a gap of $53 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 1.44% for VCLN.

Holdings Overlap

0.1%overlap

SCHD and VCLN share 1 holdings out of 139 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SCHDWeight in VCLNDifference
CWEN0.11%3.70%3.59%

Frequently Asked Questions

Which is cheaper, SCHD or VCLN?

SCHD has an expense ratio of 0.06% while VCLN charges 0.59%. SCHD is the cheaper option. On a $10,000 investment, that is $53 per year of difference.

Which performed better, SCHD or VCLN?

Over the past year SCHD returned +32.31% vs +39.36% for VCLN, so VCLN leads on 1-year performance. Over the longest common window we track (5 years), SCHD annualized +11.45% vs +3.09% for VCLN. Past performance does not guarantee future results.

Which is riskier, SCHD or VCLN?

VCLN has been the more volatile fund at 27.4% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs VCLN -45.7%.

Should I hold both SCHD and VCLN?

SCHD and VCLN have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and VCLN?

SCHD and VCLN share 1 common holdings with a 0.1% weight overlap. Combined, they hold 139 unique securities.

Which pays a higher dividend, SCHD or VCLN?

SCHD yields 3.31% while VCLN yields 1.44%, so SCHD currently pays the higher dividend yield.

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