SCHD vs VFMV
Schwab US Dividend Equity ETF vs Vanguard US Minimum Volatility ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. VFMV offers more diversification with 179 holdings.
Side-by-Side Comparison
| Metric | SCHD | VFMV | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.13% | |
| AUM | $103.7B | $418M | |
| Dividend Yield | 3.31% | 1.49% | |
| Holdings | 104 | 182 | |
| YTD Return | +25.33% | +12.31% | |
| 1Y Return | +32.31% | +14.92% | |
| 3Y Return (annualized) | +15.40% | +14.84% | |
| 5Y Return (annualized) | +9.70% | +9.42% | |
| Volatility (annualized) | 13.6% | 13.2% | |
| Max Drawdown | -33.4% | -33.6% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Feb 13, 2018 |
SCHD vs VFMV Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard US Minimum Volatility ETF (VFMV) is a ETF from Vanguard (US). Over the past year SCHD returned +32.31% while VFMV returned +14.92%. Year to date, SCHD is up 25.33% versus a gain of 12.31% for VFMV.
Over three years, SCHD compounded at +15.40% per year against +14.84% for VFMV; over five years the annualized figures are +9.70% and +9.42% respectively. Across the full 9-year window we track, SCHD has the edge at +11.45% annualized vs +9.97%. 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 13.2% for VFMV. 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 -33.6% for VFMV. 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 0.90. 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 VFMV 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 1.49% for VFMV.
Holdings Overlap
SCHD and VFMV share 17 holdings out of 262 unique holdings combined, representing a 10.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or VFMV?
SCHD has an expense ratio of 0.06% while VFMV 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 VFMV?
Over the past year SCHD returned +32.31% vs +14.92% for VFMV, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), SCHD annualized +11.45% vs +9.97% for VFMV. Past performance does not guarantee future results.
Which is riskier, SCHD or VFMV?
SCHD has been the more volatile fund at 13.6% annualized versus 13.2% for VFMV. Worst drawdown: SCHD -33.4% vs VFMV -33.6%.
Should I hold both SCHD and VFMV?
SCHD and VFMV have a monthly-return correlation of 0.90, 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 VFMV?
SCHD and VFMV share 17 common holdings with a 10.9% weight overlap. Combined, they hold 262 unique securities.
Which pays a higher dividend, SCHD or VFMV?
SCHD yields 3.31% while VFMV yields 1.49%, so SCHD currently pays the higher dividend yield.
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