SCHD vs VLT
SCHD vs VLT
Schwab US Dividend Equity ETF vs Invesco High Income Trust II
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. VLT offers more diversification with 198 holdings.
Side-by-Side Comparison
| Metric | SCHD | VLT | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 1.95% | |
| AUM | $103.7B | $3,093.5 | |
| Dividend Yield | 3.31% | 10.36% | |
| Holdings | 104 | 270 | |
| YTD Return | +24.26% | -3.82% | |
| 1Y Return | +31.38% | +1.04% | |
| 3Y Return (annualized) | +15.08% | +9.63% | |
| 5Y Return (annualized) | +9.72% | +2.27% | |
| Volatility (annualized) | 13.6% | 19.9% | |
| Max Drawdown | -33.4% | -89.4% | |
| Fund Family | Charles Schwab Asset Management | Invesco (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Apr 28, 1989 |
SCHD vs VLT Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Invesco High Income Trust II (VLT) is a ETF from Invesco (US). Over the past year SCHD returned +31.38% while VLT returned +1.04%. Year to date, SCHD is up 24.26% versus a loss of 3.82% for VLT.
Over three years, SCHD compounded at +15.08% per year against +9.63% for VLT; over five years the annualized figures are +9.72% and +2.27% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs -2.92%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VLT has been the more volatile fund, with annualized monthly volatility of 19.9% 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 -89.4% for VLT. 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while VLT charges 1.95%. On a $10,000 position that is $6 vs $195 annually, a gap of $189 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 10.36% for VLT.
Holdings Overlap
SCHD and VLT share 0 holdings out of 298 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 VLT?
SCHD has an expense ratio of 0.06% while VLT charges 1.95%. SCHD is the cheaper option. On a $10,000 investment, that is $189 per year of difference.
Which performed better, SCHD or VLT?
Over the past year SCHD returned +31.38% vs +1.04% for VLT, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs -2.92% for VLT. Past performance does not guarantee future results.
Which is riskier, SCHD or VLT?
VLT has been the more volatile fund at 19.9% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs VLT -89.4%.
Should I hold both SCHD and VLT?
SCHD and VLT have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VLT?
SCHD and VLT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 298 unique securities.
Which pays a higher dividend, SCHD or VLT?
SCHD yields 3.31% while VLT yields 10.36%, so VLT currently pays the higher dividend yield.
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