SCHD vs VFIAX
Schwab US Dividend Equity ETF vs Vanguard 500 Index Fund Admiral Class
Which is better, SCHD or VFIAX?
Large Cap Value against Large Cap Blend.
VFIAX has a lower expense ratio. SCHD led over 1Y, VFIAX over 3Y, 5Y and the full window. VFIAX is less concentrated, with 37.6% of the fund in its ten largest positions against 41.8%.
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
| Metric | SCHD | VFIAX |
|---|---|---|
| Expense Ratio | 0.06% | 0.04%Best |
| AUM | $108.9B | $677.6B |
| Dividend Yield | 3.00% | 1.03% |
| Holdings | 206 | 506 |
| YTD Price Return | +19.15%Best | +13.19% |
| 1Y Price Return | +22.37%Best | +14.96% |
| 3Y Price Return (annualized) | +11.90% | +21.46%Best |
| 5Y Price Return (annualized) | +5.55% | +12.30%Best |
| Volatility (annualized) | 15.4%Tie | 15.4%Tie |
| Max Drawdown | -18.9%Best | -25.4% |
| $10,000 over 5 years | $13,101 | $17,861Best |
| Top 10 Weight | 41.8% | 37.6%Best |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | Oct 20, 2011 | Nov 13, 2000 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VFIAX. Both funds are measured the same way, so the comparison holds. SCHD yields 3.00% and VFIAX 1.03% on top.
Volatility and max drawdown are measured over the window both funds cover: Oct 12, 2021 to Oct 8, 2026 (5 years).
SCHD vs VFIAX 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 5 years both funds cover. Prices exclude distributions, on both funds alike.
SCHD vs VFIAX Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and Vanguard 500 Index Fund Admiral Class (VFIAX) is a mutual fund from Vanguard (US). Over the past year SCHD returned +22.37% while VFIAX returned +14.96%. Year to date, SCHD is up 19.15% versus a gain of 13.19% for VFIAX.
Over three years, SCHD compounded at +11.90% per year against +21.46% for VFIAX; over five years the annualized figures are +5.55% and +12.30% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD and VFIAX have been equally volatile, both at 15.4% annualized.
The deepest peak-to-trough decline in our data was -18.9% for SCHD and -25.4% for VFIAX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.69. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SCHD charges 0.06% per year while VFIAX charges 0.04%. On a $10,000 position that is $6 vs $4 annually, a gap of $2 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 1.03% for VFIAX.
Structure and taxes
VFIAX is a mutual fund and SCHD is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
94.8% of SCHD's money is in holdings VFIAX also owns. 8.0% of VFIAX's money is in holdings SCHD also owns.
Most of SCHD is already inside VFIAX. Owning both mostly buys the same companies twice.
45 positions in common, counted across the 99 positions we hold weights for in SCHD and 494 in VFIAX, against full books of 206 and 506.
What only one of them owns
Our book lists 443 positions for VFIAX that do not appear in our book for SCHD (91.3% of the fund), and 53 for SCHD that do not appear in VFIAX (5.1%).
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
| Stock | Weight in SCHD | Weight in VFIAX | Difference |
|---|---|---|---|
| MRKMerck & Company Inc | 4.77% | 0.50% | 4.27% |
| CVXChevron Corp | 4.29% | 0.57% | 3.72% |
| KOCoca Cola Co. | 4.26% | 0.53% | 3.73% |
| ABTAbbott Laboratories | 4.44% | 0.29% | 4.15% |
| AMGNAmgen Inc. | 4.24% | 0.32% | 3.92% |
| PGProcter & Gamble Company | 3.94% | 0.52% | 3.42% |
| COPConocophillips Common Stock USD 0.01 | 4.19% | 0.23% | 3.96% |
| VZVerizon Communications Inc Vz | 4.12% | 0.30% | 3.82% |
| UNHUnitedhealth Group Incorporated | 3.82% | 0.58% | 3.24% |
| HDHome Depot Inc/The | 3.75% | 0.51% | 3.24% |
94.8% of SCHD is already inside VFIAX.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SCHD or VFIAX?
SCHD has an expense ratio of 0.06% while VFIAX charges 0.04%. VFIAX is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, SCHD or VFIAX?
Over the past year SCHD returned +22.37% vs +14.96% for VFIAX, so SCHD leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or VFIAX?
SCHD and VFIAX have been equally volatile, both at 15.4% annualized. Worst drawdown: SCHD -18.9% vs VFIAX -25.4%.
Should I hold both SCHD and VFIAX?
SCHD and VFIAX have a monthly-return correlation of 0.69, 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 VFIAX?
94.8% of SCHD's money is in holdings VFIAX also owns. 8.0% of VFIAX's is in holdings SCHD also owns. They hold 45 positions in common, counted across the 99 positions we hold weights for in SCHD and 494 in VFIAX.
Which pays a higher dividend, SCHD or VFIAX?
SCHD yields 3.00% while VFIAX yields 1.03%, so SCHD currently pays the higher dividend yield.
Is it better to hold VFIAX or SCHD in a taxable account?
SCHD is an ETF and VFIAX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VFIAX better than SCHD?
VFIAX has a lower expense ratio. SCHD led over 1Y, VFIAX over 3Y, 5Y and the full window. VFIAX is less concentrated, with 37.6% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.