SCHD vs VGSH
Schwab US Dividend Equity ETF vs Vanguard Short Term Treasury ETF
Quick Verdict
VGSH has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | VGSH | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $103.7B | $29.4B | |
| Dividend Yield | 3.31% | 3.87% | |
| Holdings | 104 | 94 | |
| YTD Return | +24.26% | +0.69% | |
| 1Y Return | +31.38% | +2.54% | |
| 3Y Return (annualized) | +15.08% | +4.15% | |
| 5Y Return (annualized) | +9.72% | +1.88% | |
| Volatility (annualized) | 13.6% | 1.4% | |
| Max Drawdown | -33.4% | -6.7% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Nov 19, 2009 |
SCHD vs VGSH Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Short Term Treasury ETF (VGSH) is a ETF from Vanguard (US). Over the past year SCHD returned +31.38% while VGSH returned +2.54%. Year to date, SCHD is up 24.26% versus a gain of 0.69% for VGSH.
Over three years, SCHD compounded at +15.08% per year against +4.15% for VGSH; over five years the annualized figures are +9.72% and +1.88% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +0.71%. 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 1.4% for VGSH. 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 -6.7% for VGSH. 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 0.03. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while VGSH charges 0.03%. On a $10,000 position that is $6 vs $3 annually, a gap of $3 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 3.87% for VGSH.
Holdings Overlap
SCHD and VGSH share 0 holdings out of 176 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 VGSH?
SCHD has an expense ratio of 0.06% while VGSH charges 0.03%. VGSH is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHD or VGSH?
Over the past year SCHD returned +31.38% vs +2.54% for VGSH, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs +0.71% for VGSH. Past performance does not guarantee future results.
Which is riskier, SCHD or VGSH?
SCHD has been the more volatile fund at 13.6% annualized versus 1.4% for VGSH. Worst drawdown: SCHD -33.4% vs VGSH -6.7%.
Should I hold both SCHD and VGSH?
SCHD and VGSH have a monthly-return correlation of 0.03, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VGSH?
SCHD and VGSH share 0 common holdings with a 0.0% weight overlap. Combined, they hold 176 unique securities.
Which pays a higher dividend, SCHD or VGSH?
SCHD yields 3.31% while VGSH yields 3.87%, so VGSH currently pays the higher dividend yield.
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