SCHD vs VTBNX
Schwab US Dividend Equity ETF vs Vanguard Total Bond Market II Index Fund Institutional Shares
Quick Verdict
VTBNX has a lower expense ratio. SCHD delivered stronger 1-year returns. VTBNX offers more diversification with 8098 holdings.
Side-by-Side Comparison
| Metric | SCHD | VTBNX | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.02% | |
| AUM | $103.7B | $206.7B | |
| Dividend Yield | 3.31% | 3.73% | |
| Holdings | 104 | 15,623 | |
| YTD Return | +25.58% | -2.60% | |
| 1Y Return | +31.06% | -1.88% | |
| 3Y Return (annualized) | +15.55% | +0.40% | |
| 5Y Return (annualized) | +9.61% | -3.56% | |
| Volatility (annualized) | 13.6% | 6.3% | |
| Max Drawdown | -33.4% | -21.5% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Feb 17, 2009 |
SCHD vs VTBNX Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Total Bond Market II Index Fund Institutional Shares (VTBNX) is a mutual fund from Vanguard (US). Over the past year SCHD returned +31.06% while VTBNX returned -1.88%. Year to date, SCHD is up 25.58% versus a loss of 2.60% for VTBNX.
Over three years, SCHD compounded at +15.55% per year against +0.40% for VTBNX; over five years the annualized figures are +9.61% and -3.56% respectively. Across the full 5-year window we track, SCHD has the edge at +11.46% annualized vs -3.56%. 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 6.3% for VTBNX. 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 -21.5% for VTBNX. 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while VTBNX charges 0.02%. On a $10,000 position that is $6 vs $2 annually, a gap of $4 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 3.73% for VTBNX.
Holdings Overlap
SCHD and VTBNX share 0 holdings out of 8198 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 VTBNX?
SCHD has an expense ratio of 0.06% while VTBNX charges 0.02%. VTBNX is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, SCHD or VTBNX?
Over the past year SCHD returned +31.06% vs -1.88% for VTBNX, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), SCHD annualized +11.46% vs -3.56% for VTBNX. Past performance does not guarantee future results.
Which is riskier, SCHD or VTBNX?
SCHD has been the more volatile fund at 13.6% annualized versus 6.3% for VTBNX. Worst drawdown: SCHD -33.4% vs VTBNX -21.5%.
Should I hold both SCHD and VTBNX?
SCHD and VTBNX have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VTBNX?
SCHD and VTBNX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8198 unique securities.
Which pays a higher dividend, SCHD or VTBNX?
SCHD yields 3.31% while VTBNX yields 3.73%, so VTBNX currently pays the higher dividend yield.
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