SCHD vs VSS
Schwab US Dividend Equity ETF vs Vanguard FTSE All-World ex-US Small-Cap ETF
Quick Verdict
SCHD delivered stronger 1-year returns. VSS offers more diversification with 4,828 holdings.
Side-by-Side Comparison
| Metric | SCHD | VSS | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.06% | |
| AUM | $108.7B | $11.3B | |
| Dividend Yield | 3.13% | 3.31% | |
| Holdings | 104 | 4,828 | |
| YTD Return | +25.69% | +11.30% | |
| 1Y Return | +30.41% | +19.35% | |
| 3Y Return (annualized) | +16.03% | +17.68% | |
| 5Y Return (annualized) | +9.64% | +6.64% | |
| Volatility (annualized) | 13.6% | 17.3% | |
| Max Drawdown | -33.4% | -46.8% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Apr 2, 2009 |
SCHD vs VSS Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) is a ETF from Vanguard (US). Over the past year SCHD returned +30.41% while VSS returned +19.35%. Year to date, SCHD is up 25.69% versus a gain of 11.30% for VSS.
Over three years, SCHD compounded at +16.03% per year against +17.68% for VSS; over five years the annualized figures are +9.64% and +6.64% respectively. Across the full 15-year window we track, SCHD has the edge at +11.46% annualized vs +7.59%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VSS has been the more volatile fund, with annualized monthly volatility of 17.3% 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 -46.8% for VSS. 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while VSS charges 0.06%. On a $10,000 position that is $6 vs $6 annually. On income, SCHD currently yields 3.13% against 3.31% for VSS.
Holdings Overlap
SCHD and VSS share 0 holdings out of 4753 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 VSS?
SCHD has an expense ratio of 0.06% while VSS charges 0.06%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, SCHD or VSS?
Over the past year SCHD returned +30.41% vs +19.35% for VSS, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.46% vs +7.59% for VSS. Past performance does not guarantee future results.
Which is riskier, SCHD or VSS?
VSS has been the more volatile fund at 17.3% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs VSS -46.8%.
Should I hold both SCHD and VSS?
SCHD and VSS have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VSS?
SCHD and VSS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 4753 unique securities.
Which pays a higher dividend, SCHD or VSS?
SCHD yields 3.13% while VSS yields 3.31%, so VSS currently pays the higher dividend yield.
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