SCHD vs VRP
Schwab US Dividend Equity ETF vs Invesco Variable Rate Preferred ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. VRP offers more diversification with 278 holdings.
Side-by-Side Comparison
| Metric | SCHD | VRP | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.50% | |
| AUM | $103.7B | $3.0B | |
| Dividend Yield | 3.31% | 6.23% | |
| Holdings | 104 | 343 | |
| YTD Return | +25.33% | +2.15% | |
| 1Y Return | +32.31% | +4.92% | |
| 3Y Return (annualized) | +15.40% | +8.62% | |
| 5Y Return (annualized) | +9.70% | +4.15% | |
| Volatility (annualized) | 13.6% | 7.4% | |
| Max Drawdown | -33.4% | -46.2% | |
| Fund Family | Charles Schwab Asset Management | Invesco (US) | |
| Category | Equity | Allocation/Balanced | |
| Inception | Oct 20, 2011 | May 1, 2014 |
SCHD vs VRP Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Invesco Variable Rate Preferred ETF (VRP) is a ETF from Invesco (US). Over the past year SCHD returned +32.31% while VRP returned +4.92%. Year to date, SCHD is up 25.33% versus a gain of 2.15% for VRP.
Over three years, SCHD compounded at +15.40% per year against +8.62% for VRP; over five years the annualized figures are +9.70% and +4.15% respectively. Across the full 12-year window we track, SCHD has the edge at +11.45% annualized vs +2.31%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 7.4% for VRP. 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 -46.2% for VRP. 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 VRP charges 0.50%. On a $10,000 position that is $6 vs $50 annually, a gap of $44 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 6.23% for VRP.
Holdings Overlap
SCHD and VRP share 1 holdings out of 377 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in VRP | Difference |
|---|---|---|---|
| FITB | 1.35% | 0.15% | 1.20% |
Frequently Asked Questions
Which is cheaper, SCHD or VRP?
SCHD has an expense ratio of 0.06% while VRP charges 0.50%. SCHD is the cheaper option. On a $10,000 investment, that is $44 per year of difference.
Which performed better, SCHD or VRP?
Over the past year SCHD returned +32.31% vs +4.92% for VRP, so SCHD leads on 1-year performance. Over the longest common window we track (12 years), SCHD annualized +11.45% vs +2.31% for VRP. Past performance does not guarantee future results.
Which is riskier, SCHD or VRP?
SCHD has been the more volatile fund at 13.6% annualized versus 7.4% for VRP. Worst drawdown: SCHD -33.4% vs VRP -46.2%.
Should I hold both SCHD and VRP?
SCHD and VRP 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 VRP?
SCHD and VRP share 1 common holdings with a 0.1% weight overlap. Combined, they hold 377 unique securities.
Which pays a higher dividend, SCHD or VRP?
SCHD yields 3.31% while VRP yields 6.23%, so VRP currently pays the higher dividend yield.
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