SCHD vs VFMO
Schwab US Dividend Equity ETF vs Vanguard US Momentum Factor ETF
Which is better, SCHD or VFMO?
Large Cap Value against Mid Cap Growth.
SCHD has a lower expense ratio. SCHD led over 1Y, VFMO over 3Y, 5Y and the full window. VFMO is less concentrated, with 8.8% 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 | VFMO |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.13% |
| AUM | $112.1B | $1.9B |
| Dividend Yield | 3.00% | 0.62% |
| Holdings | 103 | 673 |
| YTD Return | +23.46%Best | +16.77% |
| 1Y Return | +27.20%Best | +19.22% |
| 3Y Return (annualized) | +15.41% | +25.85%Best |
| 5Y Return (annualized) | +10.16% | +13.34%Best |
| Volatility (annualized) | 16.2%Best | 20.2% |
| Max Drawdown | -33.4%Best | -36.8% |
| $10,000 over 5 years | $16,223 | $18,703Best |
| Top 10 Weight | 41.8% | 8.8%Best |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Mid Cap Growth |
| Inception | Oct 20, 2011 | Feb 13, 2018 |
Volatility and max drawdown are measured over the window both funds cover: Feb 15, 2018 to Sep 18, 2026 (8.6 years).
SCHD vs VFMO 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 8.6 years both funds cover.
SCHD vs VFMO Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and Vanguard US Momentum Factor ETF (VFMO) is an ETF from Vanguard (US). Over the past year SCHD returned +27.20% while VFMO returned +19.22%. Year to date, SCHD is up 23.46% versus a gain of 16.77% for VFMO.
Over three years, SCHD compounded at +15.41% per year against +25.85% for VFMO; over five years the annualized figures are +10.16% and +13.34% respectively. Across the full 9-year window we track, VFMO has the edge at +14.36% annualized vs +10.73%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VFMO has been the more volatile fund, with annualized monthly volatility of 20.2% compared with 16.2% 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 -36.8% for VFMO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while VFMO charges 0.13%. On a $10,000 position that is $6 vs $13 annually, a gap of $7 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 0.62% for VFMO.
Holdings Overlap
38.9% of SCHD's money is in holdings VFMO also owns. 4.9% of VFMO's money is in holdings SCHD also owns.
The two portfolios partly overlap.
21 positions in common, counted across the 100 positions we hold weights for in SCHD and 694 in VFMO, against full books of 103 and 673.
What only one of them owns
Our book lists 613 positions for VFMO that do not appear in our book for SCHD (89.4% of the fund), and 78 for SCHD that do not appear in VFMO (61.1%).
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 VFMO | Difference |
|---|---|---|---|
| MRKMerck & Company Inc | 4.77% | 0.75% | 4.02% |
| AMGNAmgen Inc. | 4.70% | 0.24% | 4.46% |
| UNHUnitedhealth Group Incorporated | 3.82% | 0.49% | 3.33% |
| KOCoca Cola Co. | 4.17% | 0.13% | 4.04% |
| TXNTexas Instrument Inc | 3.13% | 0.43% | 2.70% |
| BMYBristol-Myers Squibb Co. | 3.33% | 0.19% | 3.14% |
| MOAltria Group Inc | 2.79% | 0.15% | 2.64% |
| SLBSchlumberger Nv. | 2.19% | 0.55% | 1.64% |
| EOGEog Resources Inc | 1.88% | 0.72% | 1.16% |
| TGTTarget Corp Common Stock Usd.0833 | 1.78% | 0.07% | 1.71% |
38.9% of SCHD is already inside VFMO.
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 VFMO?
SCHD has an expense ratio of 0.06% while VFMO charges 0.13%. SCHD is the cheaper option, by $7 a year on a $10,000 investment.
Which performed better, SCHD or VFMO?
Over the past year SCHD returned +27.20% vs +19.22% for VFMO, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), SCHD annualized +10.73% vs +14.36% for VFMO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or VFMO?
VFMO has been the more volatile fund at 20.2% annualized versus 16.2% for SCHD. Worst drawdown: SCHD -33.4% vs VFMO -36.8%.
Should I hold both SCHD and VFMO?
SCHD and VFMO have a monthly-return correlation of 0.74, 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 VFMO?
38.9% of SCHD's money is in holdings VFMO also owns. 4.9% of VFMO's is in holdings SCHD also owns. They hold 21 positions in common, counted across the 100 positions we hold weights for in SCHD and 694 in VFMO.
Which pays a higher dividend, SCHD or VFMO?
SCHD yields 3.00% while VFMO yields 0.62%, so SCHD currently pays the higher dividend yield.
Is VFMO better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, VFMO over 3Y, 5Y and the full window. VFMO is less concentrated, with 8.8% 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.