SCHD vs VSDM
SCHD vs VSDM
Schwab US Dividend Equity ETF vs Vanguard Short Duration Tax-Exempt Bond ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. VSDM offers more diversification with 424 holdings.
Side-by-Side Comparison
| Metric | SCHD | VSDM | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.12% | |
| AUM | $103.7B | $763M | |
| Dividend Yield | 3.31% | 3.10% | |
| Holdings | 104 | 3,774 | |
| YTD Return | +24.26% | -0.38% | |
| 1Y Return | +31.38% | +1.51% | |
| 3Y Return (annualized) | +15.08% | - | |
| 5Y Return (annualized) | +9.72% | - | |
| Volatility (annualized) | 13.6% | 2.1% | |
| Max Drawdown | -33.4% | -2.0% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Oct 20, 2011 | Nov 19, 2024 |
SCHD vs VSDM Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) is a ETF from Vanguard (US). Over the past year SCHD returned +31.38% while VSDM returned +1.51%. Year to date, SCHD is up 24.26% versus a loss of 0.38% for VSDM.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 2.1% for VSDM. 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 -2.0% for VSDM. 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while VSDM 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 3.31% against 3.10% for VSDM.
Holdings Overlap
SCHD and VSDM share 0 holdings out of 524 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 VSDM?
SCHD has an expense ratio of 0.06% while VSDM 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 VSDM?
Over the past year SCHD returned +31.38% vs +1.51% for VSDM, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), SCHD annualized +11.39% vs +3.40% for VSDM. Past performance does not guarantee future results.
Which is riskier, SCHD or VSDM?
SCHD has been the more volatile fund at 13.6% annualized versus 2.1% for VSDM. Worst drawdown: SCHD -33.4% vs VSDM -2.0%.
Should I hold both SCHD and VSDM?
SCHD and VSDM have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VSDM?
SCHD and VSDM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 524 unique securities.
Which pays a higher dividend, SCHD or VSDM?
SCHD yields 3.31% while VSDM yields 3.10%, so SCHD currently pays the higher dividend yield.
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