SCHD vs VHT
SCHD vs VHT
Schwab US Dividend Equity ETF vs Vanguard Health Care ETF
Quick Verdict
SCHD has a lower expense ratio. VHT delivered stronger 1-year returns. VHT offers more diversification with 399 holdings.
Side-by-Side Comparison
| Metric | SCHD | VHT | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.09% | |
| AUM | $103.7B | $17.8B | |
| Dividend Yield | 3.31% | 1.64% | |
| Holdings | 104 | 414 | |
| YTD Return | +24.26% | +8.87% | |
| 1Y Return | +31.38% | +32.79% | |
| 3Y Return (annualized) | +15.08% | +9.76% | |
| 5Y Return (annualized) | +9.72% | +5.39% | |
| Volatility (annualized) | 13.6% | 13.9% | |
| Max Drawdown | -33.4% | -40.9% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Jan 26, 2004 |
SCHD vs VHT Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Health Care ETF (VHT) is a ETF from Vanguard (US). Over the past year SCHD returned +31.38% while VHT returned +32.79%. Year to date, SCHD is up 24.26% versus a gain of 8.87% for VHT.
Over three years, SCHD compounded at +15.08% per year against +9.76% for VHT; over five years the annualized figures are +9.72% and +5.39% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +8.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VHT has been the more volatile fund, with annualized monthly volatility of 13.9% compared with 13.6% 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 -40.9% for VHT. 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while VHT charges 0.09%. On a $10,000 position that is $6 vs $9 annually, a gap of $3 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 1.64% for VHT.
Holdings Overlap
SCHD and VHT share 5 holdings out of 494 unique holdings combined, representing a 16.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in VHT | Difference |
|---|---|---|---|
| UNH | 4.54% | 5.42% | 0.88% |
| MRK | 4.32% | 4.38% | 0.06% |
| AMGN | 4.25% | 3.01% | 1.24% |
| ABT | Pro | Pro | Pro |
| BMY | Pro | Pro | Pro |
See all 5 holdings SCHD shares with VHT Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, SCHD or VHT?
SCHD has an expense ratio of 0.06% while VHT charges 0.09%. SCHD is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHD or VHT?
Over the past year SCHD returned +31.38% vs +32.79% for VHT, so VHT leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs +8.85% for VHT. Past performance does not guarantee future results.
Which is riskier, SCHD or VHT?
VHT has been the more volatile fund at 13.9% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs VHT -40.9%.
Should I hold both SCHD and VHT?
SCHD and VHT have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VHT?
SCHD and VHT share 5 common holdings with a 16.4% weight overlap. Combined, they hold 494 unique securities.
Which pays a higher dividend, SCHD or VHT?
SCHD yields 3.31% while VHT yields 1.64%, so SCHD currently pays the higher dividend yield.
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