SCHD vs VEGA
SCHD vs VEGA
Schwab US Dividend Equity ETF vs AdvisorShares STAR Global Buy-Write ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | VEGA | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 1.25% | |
| AUM | $103.7B | $89M | |
| Dividend Yield | 3.31% | 1.26% | |
| Holdings | 104 | 13 | |
| YTD Return | +24.26% | +8.23% | |
| 1Y Return | +31.38% | +15.54% | |
| 3Y Return (annualized) | +15.08% | +13.20% | |
| 5Y Return (annualized) | +9.72% | +6.88% | |
| Volatility (annualized) | 13.6% | 9.8% | |
| Max Drawdown | -33.4% | -28.4% | |
| Fund Family | Charles Schwab Asset Management | Advisor Shares | |
| Category | Equity | Alternative | |
| Inception | Oct 20, 2011 | Sep 17, 2012 |
SCHD vs VEGA Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and AdvisorShares STAR Global Buy-Write ETF (VEGA) is a ETF from Advisor Shares. Over the past year SCHD returned +31.38% while VEGA returned +15.54%. Year to date, SCHD is up 24.26% versus a gain of 8.23% for VEGA.
Over three years, SCHD compounded at +15.08% per year against +13.20% for VEGA; over five years the annualized figures are +9.72% and +6.88% respectively. Across the full 14-year window we track, SCHD has the edge at +11.39% annualized vs +6.18%. 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 9.8% for VEGA. 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 -28.4% for VEGA. 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while VEGA charges 1.25%. On a $10,000 position that is $6 vs $125 annually, a gap of $119 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 1.26% for VEGA.
Holdings Overlap
SCHD and VEGA share 0 holdings out of 110 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 VEGA?
SCHD has an expense ratio of 0.06% while VEGA charges 1.25%. SCHD is the cheaper option. On a $10,000 investment, that is $119 per year of difference.
Which performed better, SCHD or VEGA?
Over the past year SCHD returned +31.38% vs +15.54% for VEGA, so SCHD leads on 1-year performance. Over the longest common window we track (14 years), SCHD annualized +11.39% vs +6.18% for VEGA. Past performance does not guarantee future results.
Which is riskier, SCHD or VEGA?
SCHD has been the more volatile fund at 13.6% annualized versus 9.8% for VEGA. Worst drawdown: SCHD -33.4% vs VEGA -28.4%.
Should I hold both SCHD and VEGA?
SCHD and VEGA have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VEGA?
SCHD and VEGA share 0 common holdings with a 0.0% weight overlap. Combined, they hold 110 unique securities.
Which pays a higher dividend, SCHD or VEGA?
SCHD yields 3.31% while VEGA yields 1.26%, so SCHD currently pays the higher dividend yield.
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