SCHD vs VGM
Schwab US Dividend Equity ETF vs Invesco Trust for Investment Grade Municipals
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. VGM offers more diversification with 270 holdings.
Side-by-Side Comparison
| Metric | SCHD | VGM | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 3.13% | |
| AUM | $103.7B | $3,008.32 | |
| Dividend Yield | 3.31% | 7.40% | |
| Holdings | 104 | 534 | |
| YTD Return | +25.33% | +4.25% | |
| 1Y Return | +32.31% | +16.00% | |
| 3Y Return (annualized) | +15.40% | +10.24% | |
| 5Y Return (annualized) | +9.70% | -0.01% | |
| Volatility (annualized) | 13.6% | 12.3% | |
| Max Drawdown | -33.4% | -58.5% | |
| Fund Family | Charles Schwab Asset Management | Invesco (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Jan 24, 1992 |
SCHD vs VGM Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Invesco Trust for Investment Grade Municipals (VGM) is a ETF from Invesco (US). Over the past year SCHD returned +32.31% while VGM returned +16.00%. Year to date, SCHD is up 25.33% versus a gain of 4.25% for VGM.
Over three years, SCHD compounded at +15.40% per year against +10.24% for VGM; over five years the annualized figures are +9.70% and -0.01% respectively. Across the full 15-year window we track, SCHD has the edge at +11.45% annualized vs -0.29%. 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 12.3% for VGM. 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 -58.5% for VGM. 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while VGM charges 3.13%. On a $10,000 position that is $6 vs $313 annually, a gap of $307 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 7.40% for VGM.
Holdings Overlap
SCHD and VGM share 0 holdings out of 370 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or VGM?
SCHD has an expense ratio of 0.06% while VGM charges 3.13%. SCHD is the cheaper option. On a $10,000 investment, that is $307 per year of difference.
Which performed better, SCHD or VGM?
Over the past year SCHD returned +32.31% vs +16.00% for VGM, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.45% vs -0.29% for VGM. Past performance does not guarantee future results.
Which is riskier, SCHD or VGM?
SCHD has been the more volatile fund at 13.6% annualized versus 12.3% for VGM. Worst drawdown: SCHD -33.4% vs VGM -58.5%.
Should I hold both SCHD and VGM?
SCHD and VGM have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VGM?
SCHD and VGM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 370 unique securities.
Which pays a higher dividend, SCHD or VGM?
SCHD yields 3.31% while VGM yields 7.40%, so VGM currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.