SCHD vs VO
Schwab US Dividend Equity ETF vs Vanguard Morningstar Mid-Cap ETF
Which is better, SCHD or VO?
Large Cap Value against Mid Cap Blend.
VO has a lower expense ratio. SCHD led over 1Y and 5Y, VO over 3Y and the full window. VO is less concentrated, with 9.1% of the fund in its ten largest positions against 41.8%.
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 | VO |
|---|---|---|
| Expense Ratio | 0.06% | 0.03%Best |
| AUM | $108.9B | $107.4B |
| Dividend Yield | 3.00% | 1.30% |
| Holdings | 206 | 287 |
| YTD Return | +22.08%Best | +12.09% |
| 1Y Return | +26.66%Best | +12.36% |
| 3Y Return (annualized) | +16.06% | +17.51%Best |
| 5Y Return (annualized) | +9.39%Best | +7.89% |
| Volatility (annualized) | 13.7%Best | 15.5% |
| Max Drawdown | -33.4%Best | -39.7% |
| $10,000 over 5 years | $15,663Best | $14,619 |
| Top 10 Weight | 41.8% | 9.1%Best |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Mid Cap Blend |
| Inception | Oct 20, 2011 | Jan 26, 2004 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Oct 9, 2026 (15 years).
SCHD vs VO 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 VO Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and Vanguard Morningstar Mid-Cap ETF (VO) is an ETF from Vanguard (US). Over the past year SCHD returned +26.66% while VO returned +12.36%. Year to date, SCHD is up 22.08% versus a gain of 12.09% for VO.
Over three years, SCHD compounded at +16.06% per year against +17.51% for VO; over five years the annualized figures are +9.39% and +7.89% respectively. Across the full 15-year window we track, VO has the edge at +11.40% annualized vs +11.12%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VO has been the more volatile fund, with annualized monthly volatility of 15.5% 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 -39.7% for VO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while VO charges 0.03%. On a $10,000 position that is $6 vs $3 annually, a gap of $3 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 1.30% for VO.
Holdings Overlap
19.5% of SCHD's money is in holdings VO also owns. 7.1% of VO's money is in holdings SCHD also owns.
SCHD and VO share little of their money.
20 positions in common, counted across the 99 positions we hold weights for in SCHD and 283 in VO, against full books of 206 and 287.
What only one of them owns
Our book lists 255 positions for VO that do not appear in our book for SCHD (89.9% of the fund), and 78 for SCHD that do not appear in VO (80.4%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in VO | Difference |
|---|---|---|---|
| SLBSchlumberger Nv. | 2.10% | 0.71% | 1.39% |
| TGTTARGET CORP | 1.77% | 0.63% | 1.14% |
| OKEOneok Inc. | 1.52% | 0.55% | 0.97% |
| DVNDevon Energy Corporation | 1.45% | 0.50% | 0.95% |
| FASTFastenal Co. | 1.42% | 0.53% | 0.89% |
| FFord Motor Co | 1.37% | 0.55% | 0.82% |
| FITBFifth Third Bancorp | 1.24% | 0.49% | 0.75% |
| ADMArcher-daniels D | 1.05% | 0.37% | 0.68% |
| PAYXPaychex, Inc. | 0.93% | 0.36% | 0.57% |
| KMBKimberly-Clark Corp. | 0.82% | 0.35% | 0.47% |
You are not choosing between two funds in isolation.
Whichever of SCHD and VO 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 VO?
SCHD has an expense ratio of 0.06% while VO charges 0.03%. VO is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, SCHD or VO?
Over the past year SCHD returned +26.66% vs +12.36% for VO, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.12% vs +11.40% for VO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or VO?
VO has been the more volatile fund at 15.5% annualized versus 13.7% for SCHD. Worst drawdown: SCHD -33.4% vs VO -39.7%.
Should I hold both SCHD and VO?
SCHD and VO have a monthly-return correlation of 0.85, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between SCHD and VO?
19.5% of SCHD's money is in holdings VO also owns. 7.1% of VO's is in holdings SCHD also owns. They hold 20 positions in common, counted across the 99 positions we hold weights for in SCHD and 283 in VO.
Which pays a higher dividend, SCHD or VO?
SCHD yields 3.00% while VO yields 1.30%, so SCHD currently pays the higher dividend yield.
Is VO better than SCHD?
VO has a lower expense ratio. SCHD led over 1Y and 5Y, VO over 3Y and the full window. VO is less concentrated, with 9.1% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.