SCHD vs VPU

SCHD vs VPU

Which is better, SCHD or VPU?

SCHD has been ahead.

SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. SCHD is less concentrated, with 41.5% of the fund in its ten largest positions against 51.8%.

Lower Fees: SCHDHigher Returns: SCHDLess Concentrated: SCHD

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

MetricSCHDVPU
Expense Ratio0.06%Best0.09%
AUM$112.2B$8.5B
Dividend Yield3.13%2.68%
Holdings10368
YTD Return+27.56%Best+0.86%
1Y Return+30.29%Best+5.51%
3Y Return (annualized)+16.37%Best+15.17%
5Y Return (annualized)+10.23%Best+7.77%
Volatility (annualized)13.6%Best14.3%
Max Drawdown-33.4%Best-36.8%
$10,000 over 5 years$16,274Best$14,537
Top 10 Weight41.5%Best51.8%
Fund FamilyCharles Schwab Asset ManagementVanguard (US)
CategoryEquityEquity
StyleLarge Cap ValueLarge Cap Value
InceptionOct 20, 2011Jan 26, 2004

Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 4, 2026 (14.9 years).

SCHD vs VPU 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 14.9 years both funds cover.

SCHD vs VPU Performance

Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and Vanguard Utilities ETF (VPU) is an ETF from Vanguard (US). Over the past year SCHD returned +30.29% while VPU returned +5.51%. Year to date, SCHD is up 27.56% versus a gain of 0.86% for VPU.

Over three years, SCHD compounded at +16.37% per year against +15.17% for VPU; over five years the annualized figures are +10.23% and +7.77% respectively. Across the full 15-year window we track, SCHD has the edge at +11.53% annualized vs +7.71%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VPU has been the more volatile fund, with annualized monthly volatility of 14.3% 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 -36.8% for VPU. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.51. They move together some of the time, and apart the rest.

Fees and Cost Over Time

SCHD charges 0.06% per year while VPU 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 3.13% against 2.68% for VPU.

Holdings Overlap

SCHD already in VPU0.1%
VPU already in SCHD0.3%

0.1% of SCHD's money is in holdings VPU also owns. 0.3% of VPU's money is in holdings SCHD also owns.

We cannot see either book well enough to say how much of this pair is duplicated.

1 positions in common, counted across the 100 positions we hold weights for in SCHD and 68 in VPU, against full books of 103 and 68.

What only one of them owns

Measured across the 100 and 68 positions we hold weights for.

SCHD holds 98 positions VPU does not, 99.8% of the fund.

Largest: ABT 4.70%, AMGN 4.62%, HD 4.32%, MRK 4.26%, KO 4.20%

Top Shared Holdings

StockWeight in SCHDWeight in VPUDifference
CWENClearway Energy, Inc., Class C0.10%0.26%0.16%

You are not choosing between two funds in isolation.

Whichever of SCHD and VPU you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

SCHDVPU

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, SCHD or VPU?

SCHD has an expense ratio of 0.06% while VPU charges 0.09%. SCHD is the cheaper option, by $3 a year on a $10,000 investment.

Which performed better, SCHD or VPU?

Over the past year SCHD returned +30.29% vs +5.51% for VPU, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.53% vs +7.71% for VPU. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, SCHD or VPU?

VPU has been the more volatile fund at 14.3% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs VPU -36.8%.

Should I hold both SCHD and VPU?

SCHD and VPU have a monthly-return correlation of 0.51, 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 VPU?

SCHD yields 3.13% while VPU yields 2.68%, so SCHD currently pays the higher dividend yield.

Is VPU better than SCHD?

SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. SCHD is less concentrated, with 41.5% of the fund in its ten largest positions against 51.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.