SCHD vs VRP
Schwab US Dividend Equity ETF vs Invesco Variable Rate Preferred ETF
Which is better, SCHD or VRP?
Large Cap Value against Preferred Stock.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.
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 | VRP |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.50% |
| AUM | $112.2B | $3.0B |
| Dividend Yield | 3.13% | 6.19% |
| Holdings | 103 | 343 |
| YTD Return | +27.56%Best | +2.27% |
| 1Y Return | +30.29%Best | +4.45% |
| 3Y Return (annualized) | +16.37%Best | +8.81% |
| 5Y Return (annualized) | +10.23%Best | +4.09% |
| Volatility (annualized) | 14.5% | 7.4%Best |
| Max Drawdown | -33.4%Best | -46.2% |
| $10,000 over 5 years | $16,274Best | $12,219 |
| Fund Family | Charles Schwab Asset Management | Invesco (US) |
| Category | Equity | Allocation/Balanced |
| Style | Large Cap Value | Preferred Stock |
| Inception | Oct 20, 2011 | May 1, 2014 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: May 1, 2014 to Sep 4, 2026 (12.3 years).
SCHD vs VRP 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 12.3 years both funds cover.
SCHD vs VRP Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and Invesco Variable Rate Preferred ETF (VRP) is an ETF from Invesco (US). Over the past year SCHD returned +30.29% while VRP returned +4.45%. Year to date, SCHD is up 27.56% versus a gain of 2.27% for VRP.
Over three years, SCHD compounded at +16.37% per year against +8.81% for VRP; over five years the annualized figures are +10.23% and +4.09% respectively. Across the full 12-year window we track, SCHD has the edge at +10.38% annualized vs +2.30%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 14.5% 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 what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.65. They move together some of the time, and apart the rest.
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 3.13% against 6.19% for VRP.
Holdings Overlap
At least 5.1% of SCHD's money is in holdings VRP also owns.
Stated as a floor: for VRP, our book for it covers 74.3% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
SCHD and VRP share little of their money.
2 positions in common, counted across the 100 positions we hold weights for in SCHD and 270 in VRP, against full books of 103 and 343.
You are not choosing between two funds in isolation.
Whichever of SCHD and VRP 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 VRP?
SCHD has an expense ratio of 0.06% while VRP charges 0.50%. SCHD is the cheaper option, by $44 a year on a $10,000 investment.
Which performed better, SCHD or VRP?
Over the past year SCHD returned +30.29% vs +4.45% for VRP, so SCHD leads on 1-year performance. Over the longest common window we track (12 years), SCHD annualized +10.38% vs +2.30% for VRP. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or VRP?
SCHD has been the more volatile fund at 14.5% 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 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 VRP?
At least 5.1% of SCHD's money is in holdings VRP also owns. Our book for VRP is partial, so the real figure is this or higher. They hold 2 positions in common, counted across the 100 positions we hold weights for in SCHD and 270 in VRP.
Which pays a higher dividend, SCHD or VRP?
SCHD yields 3.13% while VRP yields 6.19%, so VRP currently pays the higher dividend yield.
Is VRP better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.