SCHD vs VNQI
Schwab US Dividend Equity ETF vs Vanguard Global ex-US Real Estate ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. VNQI offers more diversification with 747 holdings.
Side-by-Side Comparison
| Metric | SCHD | VNQI | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.12% | |
| AUM | $108.7B | $3.9B | |
| Dividend Yield | 3.13% | 4.62% | |
| Holdings | 104 | 747 | |
| YTD Return | +26.54% | -1.15% | |
| 1Y Return | +30.90% | +1.15% | |
| 3Y Return (annualized) | +16.29% | +9.23% | |
| 5Y Return (annualized) | +9.65% | -1.34% | |
| Volatility (annualized) | 13.6% | 16.3% | |
| Max Drawdown | -33.4% | -38.4% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Nov 1, 2010 |
SCHD vs VNQI Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Global ex-US Real Estate ETF (VNQI) is a ETF from Vanguard (US). Over the past year SCHD returned +30.90% while VNQI returned +1.15%. Year to date, SCHD is up 26.54% versus a loss of 1.15% for VNQI.
Over three years, SCHD compounded at +16.29% per year against +9.23% for VNQI; over five years the annualized figures are +9.65% and -1.34% respectively. Across the full 15-year window we track, SCHD has the edge at +11.51% annualized vs +3.33%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQI has been the more volatile fund, with annualized monthly volatility of 16.3% 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 -38.4% for VNQI. 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while VNQI charges 0.12%. On a $10,000 position that is $6 vs $12 annually, a gap of $6 per year that compounds over a long holding period. On income, SCHD currently yields 3.13% against 4.62% for VNQI.
Holdings Overlap
SCHD and VNQI share 0 holdings out of 806 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 VNQI?
SCHD has an expense ratio of 0.06% while VNQI charges 0.12%. SCHD is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SCHD or VNQI?
Over the past year SCHD returned +30.90% vs +1.15% for VNQI, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.51% vs +3.33% for VNQI. Past performance does not guarantee future results.
Which is riskier, SCHD or VNQI?
VNQI has been the more volatile fund at 16.3% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs VNQI -38.4%.
Should I hold both SCHD and VNQI?
SCHD and VNQI have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VNQI?
SCHD and VNQI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 806 unique securities.
Which pays a higher dividend, SCHD or VNQI?
SCHD yields 3.13% while VNQI yields 4.62%, so VNQI currently pays the higher dividend yield.
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