SCHD vs VFMO
SCHD vs VFMO
Schwab US Dividend Equity ETF vs Vanguard US Momentum Factor ETF
Quick Verdict
SCHD has a lower expense ratio. VFMO delivered stronger 1-year returns. VFMO offers more diversification with 668 holdings.
Side-by-Side Comparison
| Metric | SCHD | VFMO | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.13% | |
| AUM | $103.7B | $2.0B | |
| Dividend Yield | 3.31% | 0.82% | |
| Holdings | 104 | 674 | |
| YTD Return | +24.26% | +19.54% | |
| 1Y Return | +31.38% | +33.00% | |
| 3Y Return (annualized) | +15.08% | +25.07% | |
| 5Y Return (annualized) | +9.72% | +13.13% | |
| Volatility (annualized) | 13.6% | 20.3% | |
| Max Drawdown | -33.4% | -36.8% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Feb 13, 2018 |
SCHD vs VFMO Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard US Momentum Factor ETF (VFMO) is a ETF from Vanguard (US). Over the past year SCHD returned +31.38% while VFMO returned +33.00%. Year to date, SCHD is up 24.26% versus a gain of 19.54% for VFMO.
Over three years, SCHD compounded at +15.08% per year against +25.07% for VFMO; over five years the annualized figures are +9.72% and +13.13% respectively. Across the full 9-year window we track, VFMO has the edge at +14.88% annualized vs +11.39%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VFMO has been the more volatile fund, with annualized monthly volatility of 20.3% 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 -36.8% for VFMO. 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 0.74. 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 3.31% against 0.82% for VFMO.
Holdings Overlap
SCHD and VFMO share 11 holdings out of 757 unique holdings combined, representing a 2.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in VFMO | Difference |
|---|---|---|---|
| MRK | 4.32% | 0.44% | 3.88% |
| AMGN | 4.25% | 0.18% | 4.07% |
| LMT | 2.66% | 0.59% | 2.07% |
| SLB:CW | Pro | Pro | Pro |
| F | Pro | Pro | Pro |
| FAST | Pro | Pro | Pro |
| ADM | Pro | Pro | Pro |
| DINO | Pro | Pro | Pro |
| APA | Pro | Pro | Pro |
| M | Pro | Pro | Pro |
See all 10 holdings SCHD shares with VFMO Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
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. On a $10,000 investment, that is $7 per year of difference.
Which performed better, SCHD or VFMO?
Over the past year SCHD returned +31.38% vs +33.00% for VFMO, so VFMO leads on 1-year performance. Over the longest common window we track (9 years), SCHD annualized +11.39% vs +14.88% for VFMO. Past performance does not guarantee future results.
Which is riskier, SCHD or VFMO?
VFMO has been the more volatile fund at 20.3% annualized versus 13.6% 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VFMO?
SCHD and VFMO share 11 common holdings with a 2.5% weight overlap. Combined, they hold 757 unique securities.
Which pays a higher dividend, SCHD or VFMO?
SCHD yields 3.31% while VFMO yields 0.82%, so SCHD currently pays the higher dividend yield.
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