SCHD vs VFMF
Schwab US Dividend Equity ETF vs Vanguard US Multifactor ETF
Quick Verdict
SCHD has a lower expense ratio. VFMF delivered stronger 1-year returns. VFMF offers more diversification with 593 holdings.
Side-by-Side Comparison
| Metric | SCHD | VFMF | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.18% | |
| AUM | $103.7B | $703M | |
| Dividend Yield | 3.31% | 1.75% | |
| Holdings | 104 | 597 | |
| YTD Return | +25.33% | +22.15% | |
| 1Y Return | +32.31% | +36.96% | |
| 3Y Return (annualized) | +15.40% | +21.44% | |
| 5Y Return (annualized) | +9.70% | +14.44% | |
| Volatility (annualized) | 13.6% | 18.6% | |
| Max Drawdown | -33.4% | -41.3% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Feb 13, 2018 |
SCHD vs VFMF Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard US Multifactor ETF (VFMF) is a ETF from Vanguard (US). Over the past year SCHD returned +32.31% while VFMF returned +36.96%. Year to date, SCHD is up 25.33% versus a gain of 22.15% for VFMF.
Over three years, SCHD compounded at +15.40% per year against +21.44% for VFMF; over five years the annualized figures are +9.70% and +14.44% respectively. Across the full 9-year window we track, VFMF has the edge at +12.68% annualized vs +11.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VFMF has been the more volatile fund, with annualized monthly volatility of 18.6% 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 -41.3% for VFMF. 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
SCHD charges 0.06% per year while VFMF charges 0.18%. On a $10,000 position that is $6 vs $18 annually, a gap of $12 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 1.75% for VFMF.
Holdings Overlap
SCHD and VFMF share 46 holdings out of 647 unique holdings combined, representing a 10.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or VFMF?
SCHD has an expense ratio of 0.06% while VFMF charges 0.18%. SCHD is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, SCHD or VFMF?
Over the past year SCHD returned +32.31% vs +36.96% for VFMF, so VFMF leads on 1-year performance. Over the longest common window we track (9 years), SCHD annualized +11.45% vs +12.68% for VFMF. Past performance does not guarantee future results.
Which is riskier, SCHD or VFMF?
VFMF has been the more volatile fund at 18.6% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs VFMF -41.3%.
Should I hold both SCHD and VFMF?
SCHD and VFMF have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between SCHD and VFMF?
SCHD and VFMF share 46 common holdings with a 10.1% weight overlap. Combined, they hold 647 unique securities.
Which pays a higher dividend, SCHD or VFMF?
SCHD yields 3.31% while VFMF yields 1.75%, so SCHD currently pays the higher dividend yield.
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