SCHD vs VCLT
Schwab US Dividend Equity ETF vs Vanguard Long Term Corporate Bond ETF
Quick Verdict
VCLT has a lower expense ratio. SCHD delivered stronger 1-year returns. VCLT offers more diversification with 2436 holdings.
Side-by-Side Comparison
| Metric | SCHD | VCLT | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $103.7B | $9.2B | |
| Dividend Yield | 3.31% | 5.49% | |
| Holdings | 104 | 2,601 | |
| YTD Return | +25.62% | -2.66% | |
| 1Y Return | +32.62% | -0.51% | |
| 3Y Return (annualized) | +15.58% | +4.82% | |
| 5Y Return (annualized) | +9.63% | -2.65% | |
| Volatility (annualized) | 13.6% | 10.7% | |
| Max Drawdown | -33.4% | -35.1% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Nov 19, 2009 |
SCHD vs VCLT Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Long Term Corporate Bond ETF (VCLT) is a ETF from Vanguard (US). Over the past year SCHD returned +32.62% while VCLT returned -0.51%. Year to date, SCHD is up 25.62% versus a loss of 2.66% for VCLT.
Over three years, SCHD compounded at +15.58% per year against +4.82% for VCLT; over five years the annualized figures are +9.63% and -2.65% respectively. Across the full 15-year window we track, SCHD has the edge at +11.47% annualized vs +1.40%. 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 10.7% for VCLT. 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 -35.1% for VCLT. 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while VCLT 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 5.49% for VCLT.
Holdings Overlap
SCHD and VCLT share 1 holdings out of 2535 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in VCLT | Difference |
|---|---|---|---|
| ADM | 1.07% | 0.01% | 1.06% |
Frequently Asked Questions
Which is cheaper, SCHD or VCLT?
SCHD has an expense ratio of 0.06% while VCLT charges 0.03%. VCLT is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHD or VCLT?
Over the past year SCHD returned +32.62% vs -0.51% for VCLT, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.47% vs +1.40% for VCLT. Past performance does not guarantee future results.
Which is riskier, SCHD or VCLT?
SCHD has been the more volatile fund at 13.6% annualized versus 10.7% for VCLT. Worst drawdown: SCHD -33.4% vs VCLT -35.1%.
Should I hold both SCHD and VCLT?
SCHD and VCLT have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VCLT?
SCHD and VCLT share 1 common holdings with a 0.0% weight overlap. Combined, they hold 2535 unique securities.
Which pays a higher dividend, SCHD or VCLT?
SCHD yields 3.31% while VCLT yields 5.49%, so VCLT currently pays the higher dividend yield.
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