SCHD vs VGUS
Schwab US Dividend Equity ETF vs Vanguard Ultra-Short Treasury ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | SCHD | VGUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.07% | |
| AUM | $108.7B | $1.1B | |
| Dividend Yield | 3.13% | 3.61% | |
| Holdings | 104 | 91 | |
| YTD Return | +27.93% | +2.30% | |
| 1Y Return | +30.06% | +3.79% | |
| 3Y Return (annualized) | +16.25% | - | |
| 5Y Return (annualized) | +10.03% | - | |
| Volatility (annualized) | 13.6% | 0.5% | |
| Max Drawdown | -33.4% | -0.1% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Feb 7, 2025 |
SCHD vs VGUS Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Ultra-Short Treasury ETF (VGUS) is a ETF from Vanguard (US). Over the past year SCHD returned +30.06% while VGUS returned +3.79%. Year to date, SCHD is up 27.93% versus a gain of 2.30% for VGUS.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 0.5% for VGUS. 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 -0.1% for VGUS. 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 -0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while VGUS charges 0.07%. On a $10,000 position that is $6 vs $7 annually, a gap of $1 per year that compounds over a long holding period. On income, SCHD currently yields 3.13% against 3.61% for VGUS.
Holdings Overlap
SCHD and VGUS share 0 holdings out of 151 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 VGUS?
SCHD has an expense ratio of 0.06% while VGUS charges 0.07%. SCHD is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, SCHD or VGUS?
Over the past year SCHD returned +30.06% vs +3.79% for VGUS, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), SCHD annualized +11.56% vs +4.80% for VGUS. Past performance does not guarantee future results.
Which is riskier, SCHD or VGUS?
SCHD has been the more volatile fund at 13.6% annualized versus 0.5% for VGUS. Worst drawdown: SCHD -33.4% vs VGUS -0.1%.
Should I hold both SCHD and VGUS?
SCHD and VGUS have a monthly-return correlation of -0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VGUS?
SCHD and VGUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 151 unique securities.
Which pays a higher dividend, SCHD or VGUS?
SCHD yields 3.13% while VGUS yields 3.61%, so VGUS currently pays the higher dividend yield.
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