SCHD vs VCRM

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. VCRM offers more diversification with 609 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: VCRM

Side-by-Side Comparison

MetricSCHDVCRMWinner
Expense Ratio0.06%0.12%
AUM$103.7B$1.7B
Dividend Yield3.31%3.61%
Holdings1043,675
YTD Return+25.62%-0.54%
1Y Return+32.62%+3.99%
3Y Return (annualized)+15.58%-
5Y Return (annualized)+9.63%-
Volatility (annualized)13.6%4.1%
Max Drawdown-33.4%-3.8%
Fund FamilyCharles Schwab Asset ManagementVanguard (US)
CategoryEquityTax Preferred
InceptionOct 20, 2011Nov 19, 2024

SCHD vs VCRM Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Core Tax-Exempt Bond ETF (VCRM) is a ETF from Vanguard (US). Over the past year SCHD returned +32.62% while VCRM returned +3.99%. Year to date, SCHD is up 25.62% versus a loss of 0.54% for VCRM.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 4.1% for VCRM. 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 -3.8% for VCRM. 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 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while VCRM 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 3.31% against 3.61% for VCRM.

Holdings Overlap

0.0%overlap

SCHD and VCRM share 0 holdings out of 709 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 VCRM?

SCHD has an expense ratio of 0.06% while VCRM charges 0.12%. SCHD is the cheaper option. On a $10,000 investment, that is $6 per year of difference.

Which performed better, SCHD or VCRM?

Over the past year SCHD returned +32.62% vs +3.99% for VCRM, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), SCHD annualized +11.47% vs +2.87% for VCRM. Past performance does not guarantee future results.

Which is riskier, SCHD or VCRM?

SCHD has been the more volatile fund at 13.6% annualized versus 4.1% for VCRM. Worst drawdown: SCHD -33.4% vs VCRM -3.8%.

Should I hold both SCHD and VCRM?

SCHD and VCRM have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and VCRM?

SCHD and VCRM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 709 unique securities.

Which pays a higher dividend, SCHD or VCRM?

SCHD yields 3.31% while VCRM yields 3.61%, so VCRM currently pays the higher dividend yield.

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