SCHD vs VCSH
Schwab US Dividend Equity ETF vs Vanguard Short Term Corporate Bond ETF
Quick Verdict
VCSH has a lower expense ratio. SCHD delivered stronger 1-year returns. VCSH offers more diversification with 2440 holdings.
Side-by-Side Comparison
| Metric | SCHD | VCSH | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $103.7B | $44.9B | |
| Dividend Yield | 3.31% | 4.44% | |
| Holdings | 104 | 2,719 | |
| YTD Return | +24.26% | +0.74% | |
| 1Y Return | +31.38% | +3.00% | |
| 3Y Return (annualized) | +15.08% | +5.33% | |
| 5Y Return (annualized) | +9.72% | +2.32% | |
| Volatility (annualized) | 13.6% | 2.6% | |
| Max Drawdown | -33.4% | -12.9% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Nov 19, 2009 |
SCHD vs VCSH Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Short Term Corporate Bond ETF (VCSH) is a ETF from Vanguard (US). Over the past year SCHD returned +31.38% while VCSH returned +3.00%. Year to date, SCHD is up 24.26% versus a gain of 0.74% for VCSH.
Over three years, SCHD compounded at +15.08% per year against +5.33% for VCSH; over five years the annualized figures are +9.72% and +2.32% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +1.29%. 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 2.6% for VCSH. 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 -12.9% for VCSH. 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 VCSH 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 4.44% for VCSH.
Holdings Overlap
SCHD and VCSH share 0 holdings out of 2540 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 VCSH?
SCHD has an expense ratio of 0.06% while VCSH charges 0.03%. VCSH is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHD or VCSH?
Over the past year SCHD returned +31.38% vs +3.00% for VCSH, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs +1.29% for VCSH. Past performance does not guarantee future results.
Which is riskier, SCHD or VCSH?
SCHD has been the more volatile fund at 13.6% annualized versus 2.6% for VCSH. Worst drawdown: SCHD -33.4% vs VCSH -12.9%.
Should I hold both SCHD and VCSH?
SCHD and VCSH 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 VCSH?
SCHD and VCSH share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2540 unique securities.
Which pays a higher dividend, SCHD or VCSH?
SCHD yields 3.31% while VCSH yields 4.44%, so VCSH currently pays the higher dividend yield.
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