SCHD vs VNQ
Schwab US Dividend Equity ETF vs Vanguard Real Estate ETF
Which is better, SCHD or VNQ?
Large Cap Value against Mid Cap Blend.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 49.8%.
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 | VNQ |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.13% |
| AUM | $108.9B | $38.1B |
| Dividend Yield | 3.00% | 3.60% |
| Holdings | 206 | 144 |
| YTD Return | +22.08%Best | +5.32% |
| 1Y Return | +26.66%Best | +5.39% |
| 3Y Return (annualized) | +16.06%Best | +10.55% |
| 5Y Return (annualized) | +9.39%Best | +1.33% |
| Volatility (annualized) | 13.7%Best | 16.6% |
| Max Drawdown | -33.4%Best | -42.8% |
| $10,000 over 5 years | $15,663Best | $10,683 |
| Top 10 Weight | 41.8%Best | 49.8% |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Mid Cap Blend |
| Inception | Oct 20, 2011 | Sep 23, 2004 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Oct 9, 2026 (15 years).
SCHD vs VNQ 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 covers the 15 years both funds cover.
SCHD vs VNQ Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and Vanguard Real Estate ETF (VNQ) is an ETF from Vanguard (US). Over the past year SCHD returned +26.66% while VNQ returned +5.39%. Year to date, SCHD is up 22.08% versus a gain of 5.32% for VNQ.
Over three years, SCHD compounded at +16.06% per year against +10.55% for VNQ; over five years the annualized figures are +9.39% and +1.33% respectively. Across the full 15-year window we track, SCHD has the edge at +11.12% annualized vs +5.09%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 16.6% compared with 13.7% 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 -42.8% for VNQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while VNQ charges 0.13%. On a $10,000 position that is $6 vs $13 annually, a gap of $7 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 3.60% for VNQ.
Holdings Overlap
We hold position weights for 99 holdings in SCHD and 139 in VNQ, totalling 100.0% and 99.4% 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 99 positions we hold weights for in SCHD and 139 in VNQ, against full books of 206 and 144.
What only one of them owns
Measured across the 99 and 139 positions we hold weights for.
SCHD holds 98 positions VNQ does not, 99.9% of the fund.
Largest: MRK 4.77%, ABT 4.44%, CVX 4.29%, KO 4.26%, AMGN 4.24%
You are not choosing between two funds in isolation.
Whichever of SCHD and VNQ 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 VNQ?
SCHD has an expense ratio of 0.06% while VNQ charges 0.13%. SCHD is the cheaper option, by $7 a year on a $10,000 investment.
Which performed better, SCHD or VNQ?
Over the past year SCHD returned +26.66% vs +5.39% for VNQ, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.12% vs +5.09% for VNQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or VNQ?
VNQ has been the more volatile fund at 16.6% annualized versus 13.7% for SCHD. Worst drawdown: SCHD -33.4% vs VNQ -42.8%.
Should I hold both SCHD and VNQ?
SCHD and VNQ have a monthly-return correlation of 0.70, 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 VNQ?
SCHD yields 3.00% while VNQ yields 3.60%, so VNQ currently pays the higher dividend yield.
Is VNQ better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 49.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.