SCHD vs VSHY
Schwab US Dividend Equity ETF vs Virtus Newfleet Short Duration High Yield Bond ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. VSHY offers more diversification with 197 holdings.
Side-by-Side Comparison
| Metric | SCHD | VSHY | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.39% | |
| AUM | $108.7B | $32M | |
| Dividend Yield | 3.13% | 6.28% | |
| Holdings | 104 | 197 | |
| YTD Return | +28.63% | +3.21% | |
| 1Y Return | +32.53% | +5.81% | |
| 3Y Return (annualized) | +16.97% | +8.34% | |
| 5Y Return (annualized) | +10.47% | +4.24% | |
| Volatility (annualized) | 13.7% | 6.2% | |
| Max Drawdown | -33.4% | -18.6% | |
| Fund Family | Charles Schwab Asset Management | Virtus Investment Partners | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Dec 5, 2016 |
SCHD vs VSHY Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Virtus Newfleet Short Duration High Yield Bond ETF (VSHY) is a ETF from Virtus Investment Partners. Over the past year SCHD returned +32.53% while VSHY returned +5.81%. Year to date, SCHD is up 28.63% versus a gain of 3.21% for VSHY.
Over three years, SCHD compounded at +16.97% per year against +8.34% for VSHY; over five years the annualized figures are +10.47% and +4.24% respectively. Across the full 10-year window we track, SCHD has the edge at +11.63% annualized vs +2.19%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 6.2% for VSHY. 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 -18.6% for VSHY. 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while VSHY charges 0.39%. On a $10,000 position that is $6 vs $39 annually, a gap of $33 per year that compounds over a long holding period. On income, SCHD currently yields 3.13% against 6.28% for VSHY.
Holdings Overlap
SCHD and VSHY share 0 holdings out of 102 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 VSHY?
SCHD has an expense ratio of 0.06% while VSHY charges 0.39%. SCHD is the cheaper option. On a $10,000 investment, that is $33 per year of difference.
Which performed better, SCHD or VSHY?
Over the past year SCHD returned +32.53% vs +5.81% for VSHY, so SCHD leads on 1-year performance. Over the longest common window we track (10 years), SCHD annualized +11.63% vs +2.19% for VSHY. Past performance does not guarantee future results.
Which is riskier, SCHD or VSHY?
SCHD has been the more volatile fund at 13.7% annualized versus 6.2% for VSHY. Worst drawdown: SCHD -33.4% vs VSHY -18.6%.
Should I hold both SCHD and VSHY?
SCHD and VSHY have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VSHY?
SCHD and VSHY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 102 unique securities.
Which pays a higher dividend, SCHD or VSHY?
SCHD yields 3.13% while VSHY yields 6.28%, so VSHY currently pays the higher dividend yield.
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