SCHD vs VDE

SCHD vs VDE

Which is better, SCHD or VDE?

Each has led over a different period.

SCHD has a lower expense ratio. SCHD led over 3Y and the full window, VDE over 1Y and 5Y. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 65.1%.

Lower Fees: SCHDHigher Returns: splitLess Concentrated: SCHD

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricSCHDVDE
Expense Ratio0.06%Best0.09%
AUM$112.1B$12.4B
Dividend Yield3.00%2.24%
Holdings103114
YTD Return+24.23%+42.45%Best
1Y Return+27.90%+47.03%Best
3Y Return (annualized)+15.55%Best+15.23%
5Y Return (annualized)+9.97%+25.37%Best
Volatility (annualized)13.6%Best27.2%
Max Drawdown-33.4%Best-78.5%
$10,000 over 5 years$16,083$30,972Best
Top 10 Weight41.8%Best65.1%
Fund FamilyCharles Schwab Asset ManagementVanguard (US)
CategoryEquityEquity
StyleLarge Cap ValueLarge Cap Value
InceptionOct 20, 2011Sep 23, 2004

Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 17, 2026 (14.9 years).

SCHD vs VDE growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 14.9 years both funds cover.

SCHD vs VDE Performance

Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and Vanguard Energy ETF (VDE) is an ETF from Vanguard (US). Over the past year SCHD returned +27.90% while VDE returned +47.03%. Year to date, SCHD is up 24.23% versus a gain of 42.45% for VDE.

Over three years, SCHD compounded at +15.55% per year against +15.23% for VDE; over five years the annualized figures are +9.97% and +25.37% respectively. Across the full 15-year window we track, SCHD has the edge at +11.30% annualized vs +5.51%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VDE has been the more volatile fund, with annualized monthly volatility of 27.2% 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 -78.5% for VDE. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.71. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

SCHD charges 0.06% per year while VDE 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 3.00% against 2.24% for VDE.

Holdings Overlap

SCHD already in VDE15.7%
VDE already in SCHD32.0%

15.7% of SCHD's money is in holdings VDE also owns. 32.0% of VDE's money is in holdings SCHD also owns.

The two portfolios partly overlap.

9 positions in common, counted across the 100 positions we hold weights for in SCHD and 112 in VDE, against full books of 103 and 114.

What only one of them owns

Our book lists 92 positions for VDE that do not appear in our book for SCHD (65.9% of the fund), and 90 for SCHD that do not appear in VDE (84.2%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in SCHDWeight in VDEDifference
CVXChevron Corp4.02%14.36%10.34%
COPConocophillips Common Stock USD 0.013.94%5.83%1.89%
SLBSchlumberger Nv.2.19%2.97%0.78%
EOGEog Resources Inc1.88%3.19%1.31%
OKEOneok Inc.1.47%2.25%0.78%
DVNDevon Energy Corporation1.36%2.01%0.65%
DINOHF Sinclair Corp0.38%0.62%0.24%
APAApa Corp0.37%0.56%0.19%
MURMurphy Oil Corp0.12%0.25%0.13%

32.0% of VDE is already inside SCHD.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

SCHDVDE

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, SCHD or VDE?

SCHD has an expense ratio of 0.06% while VDE charges 0.09%. SCHD is the cheaper option, by $3 a year on a $10,000 investment.

Which performed better, SCHD or VDE?

Over the past year SCHD returned +27.90% vs +47.03% for VDE, so VDE leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.30% vs +5.51% for VDE. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, SCHD or VDE?

VDE has been the more volatile fund at 27.2% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs VDE -78.5%.

Should I hold both SCHD and VDE?

SCHD and VDE have a monthly-return correlation of 0.71, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between SCHD and VDE?

32.0% of VDE's money is in holdings SCHD also owns. 32.0% of VDE's is in holdings SCHD also owns. They hold 9 positions in common, counted across the 100 positions we hold weights for in SCHD and 112 in VDE.

Which pays a higher dividend, SCHD or VDE?

SCHD yields 3.00% while VDE yields 2.24%, so SCHD currently pays the higher dividend yield.

Is VDE better than SCHD?

SCHD has a lower expense ratio. SCHD led over 3Y and the full window, VDE over 1Y and 5Y. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 65.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.