SCHD vs VFQY
Schwab US Dividend Equity ETF vs Vanguard US Quality Factor ETF
Which is better, SCHD or VFQY?
Large Cap Value against Mid Cap Blend.
SCHD has a lower expense ratio. SCHD led over 1Y and 5Y, VFQY over 3Y and the full window. VFQY is less concentrated, with 14.8% 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 | VFQY |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.13% |
| AUM | $108.9B | $507M |
| Dividend Yield | 3.00% | 1.02% |
| Holdings | 206 | 452 |
| YTD Return | +22.89%Best | +13.17% |
| 1Y Return | +29.27%Best | +17.58% |
| 3Y Return (annualized) | +16.56% | +17.03%Best |
| 5Y Return (annualized) | +9.63%Best | +9.35% |
| Volatility (annualized) | 16.2%Best | 18.1% |
| Max Drawdown | -33.4%Best | -37.4% |
| $10,000 over 5 years | $15,836Best | $15,635 |
| Top 10 Weight | 41.8% | 14.8%Best |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Mid Cap Blend |
| Inception | Oct 20, 2011 | Feb 13, 2018 |
Volatility and max drawdown are measured over the window both funds cover: Feb 15, 2018 to Oct 12, 2026 (8.7 years).
SCHD vs VFQY 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 8.7 years both funds cover.
SCHD vs VFQY Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and Vanguard US Quality Factor ETF (VFQY) is an ETF from Vanguard (US). Over the past year SCHD returned +29.27% while VFQY returned +17.58%. Year to date, SCHD is up 22.89% versus a gain of 13.17% for VFQY.
Over three years, SCHD compounded at +16.56% per year against +17.03% for VFQY; over five years the annualized figures are +9.63% and +9.35% respectively. Across the full 9-year window we track, VFQY has the edge at +11.29% annualized vs +10.59%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VFQY has been the more volatile fund, with annualized monthly volatility of 18.1% 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 -37.4% for VFQY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while VFQY 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 1.02% for VFQY.
Holdings Overlap
32.4% of SCHD's money is in holdings VFQY also owns. 9.0% of VFQY's money is in holdings SCHD also owns.
The two portfolios partly overlap.
33 positions in common, counted across the 99 positions we hold weights for in SCHD and 465 in VFQY, against full books of 206 and 452.
What only one of them owns
Our book lists 418 positions for VFQY that do not appear in our book for SCHD (88.7% of the fund), and 66 for SCHD that do not appear in VFQY (67.6%).
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 VFQY | Difference |
|---|---|---|---|
| KOCoca Cola Co. | 4.26% | 0.85% | 3.41% |
| MRKMerck & Company Inc | 4.77% | 0.11% | 4.66% |
| PGProcter & Gamble Company | 3.94% | 0.83% | 3.11% |
| TXNTexas Instrument Inc | 3.31% | 1.10% | 2.21% |
| QCOMQualcomm Inc. | 2.76% | 0.75% | 2.01% |
| ADPAutomatic Data Processing, Inc. | 2.68% | 0.15% | 2.53% |
| LMTLockheed Martin Corp | 2.66% | 0.11% | 2.55% |
| TGTTARGET CORP | 1.77% | 0.54% | 1.23% |
| FASTFastenal Co. | 1.42% | 0.43% | 0.99% |
| BBYBest Buy Co Inc | 0.45% | 0.71% | 0.26% |
32.4% of SCHD is already inside VFQY.
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 VFQY?
SCHD has an expense ratio of 0.06% while VFQY charges 0.13%. SCHD is the cheaper option, by $7 a year on a $10,000 investment.
Which performed better, SCHD or VFQY?
Over the past year SCHD returned +29.27% vs +17.58% for VFQY, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), SCHD annualized +10.59% vs +11.29% for VFQY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or VFQY?
VFQY has been the more volatile fund at 18.1% annualized versus 16.2% for SCHD. Worst drawdown: SCHD -33.4% vs VFQY -37.4%.
Should I hold both SCHD and VFQY?
SCHD and VFQY have a monthly-return correlation of 0.87, 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 VFQY?
32.4% of SCHD's money is in holdings VFQY also owns. 9.0% of VFQY's is in holdings SCHD also owns. They hold 33 positions in common, counted across the 99 positions we hold weights for in SCHD and 465 in VFQY.
Which pays a higher dividend, SCHD or VFQY?
SCHD yields 3.00% while VFQY yields 1.02%, so SCHD currently pays the higher dividend yield.
Is VFQY better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y and 5Y, VFQY over 3Y and the full window. VFQY is less concentrated, with 14.8% 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.