SCHD vs VDC
Schwab US Dividend Equity ETF vs Vanguard Consumer Staples ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. VDC offers more diversification with 105 holdings.
Side-by-Side Comparison
| Metric | SCHD | VDC | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.09% | |
| AUM | $103.7B | $7.8B | |
| Dividend Yield | 3.31% | 2.33% | |
| Holdings | 104 | 107 | |
| YTD Return | +24.26% | +10.83% | |
| 1Y Return | +31.38% | +6.43% | |
| 3Y Return (annualized) | +15.08% | +8.10% | |
| 5Y Return (annualized) | +9.72% | +7.12% | |
| Volatility (annualized) | 13.6% | 11.8% | |
| Max Drawdown | -33.4% | -36.6% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Jan 26, 2004 |
SCHD vs VDC Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Consumer Staples ETF (VDC) is a ETF from Vanguard (US). Over the past year SCHD returned +31.38% while VDC returned +6.43%. Year to date, SCHD is up 24.26% versus a gain of 10.83% for VDC.
Over three years, SCHD compounded at +15.08% per year against +8.10% for VDC; over five years the annualized figures are +9.72% and +7.12% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +7.60%. 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 11.8% for VDC. 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 -36.6% for VDC. 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while VDC charges 0.09%. On a $10,000 position that is $6 vs $9 annually, a gap of $3 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 2.33% for VDC.
Holdings Overlap
SCHD and VDC share 12 holdings out of 193 unique holdings combined, representing a 20.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or VDC?
SCHD has an expense ratio of 0.06% while VDC charges 0.09%. SCHD is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHD or VDC?
Over the past year SCHD returned +31.38% vs +6.43% for VDC, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs +7.60% for VDC. Past performance does not guarantee future results.
Which is riskier, SCHD or VDC?
SCHD has been the more volatile fund at 13.6% annualized versus 11.8% for VDC. Worst drawdown: SCHD -33.4% vs VDC -36.6%.
Should I hold both SCHD and VDC?
SCHD and VDC have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VDC?
SCHD and VDC share 12 common holdings with a 20.1% weight overlap. Combined, they hold 193 unique securities.
Which pays a higher dividend, SCHD or VDC?
SCHD yields 3.31% while VDC yields 2.33%, so SCHD currently pays the higher dividend yield.
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