SCHD vs VGSH
Schwab US Dividend Equity ETF vs Vanguard Short Term Treasury ETF
Which is better, SCHD or VGSH?
Large Cap Value against Short Term Government Bond.
VGSH has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.
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 | VGSH |
|---|---|---|
| Expense Ratio | 0.06% | 0.03%Best |
| AUM | $112.1B | $34.7B |
| Dividend Yield | 3.00% | 3.82% |
| Holdings | 103 | 94 |
| YTD Return | +23.46%Best | +0.48% |
| 1Y Return | +27.20%Best | +1.65% |
| 3Y Return (annualized) | +15.41%Best | +4.11% |
| 5Y Return (annualized) | +10.16%Best | +1.82% |
| Volatility (annualized) | 13.7% | 1.4%Best |
| Max Drawdown | -33.4% | -6.7%Best |
| $10,000 over 5 years | $16,223Best | $10,944 |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Value | Short Term Government Bond |
| Inception | Oct 20, 2011 | Nov 19, 2009 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 18, 2026 (14.9 years).
SCHD vs VGSH 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
SCHD vs VGSH Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and Vanguard Short Term Treasury ETF (VGSH) is an ETF from Vanguard (US). Over the past year SCHD returned +27.20% while VGSH returned +1.65%. Year to date, SCHD is up 23.46% versus a gain of 0.48% for VGSH.
Over three years, SCHD compounded at +15.41% per year against +4.11% for VGSH; over five years the annualized figures are +10.16% and +1.82% respectively. Across the full 15-year window we track, SCHD has the edge at +11.25% annualized vs +0.66%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% 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 what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.04. They move largely independently of each other.
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 3.00% against 3.82% for VGSH.
Holdings Overlap
We hold position weights for 100 holdings in SCHD and 71 in VGSH, totalling 100.0% and 76.6% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 100 positions we hold weights for in SCHD and 71 in VGSH, against full books of 103 and 94.
You are not choosing between two funds in isolation.
Whichever of SCHD and VGSH you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $3 a year on a $10,000 investment.
Which performed better, SCHD or VGSH?
Over the past year SCHD returned +27.20% vs +1.65% for VGSH, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.25% vs +0.66% for VGSH. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or VGSH?
SCHD has been the more volatile fund at 13.7% 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 0.04, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, SCHD or VGSH?
SCHD yields 3.00% while VGSH yields 3.82%, so VGSH currently pays the higher dividend yield.
Is VGSH better than SCHD?
VGSH has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.