SCHD vs VTCIX
Schwab US Dividend Equity ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Quick Verdict
VTCIX has a lower expense ratio. SCHD delivered stronger 1-year returns. VTCIX offers more diversification with 825 holdings.
Side-by-Side Comparison
| Metric | SCHD | VTCIX | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $103.7B | $5.2B | |
| Dividend Yield | 3.31% | 1.08% | |
| Holdings | 104 | 836 | |
| YTD Return | +25.58% | +12.74% | |
| 1Y Return | +31.06% | +21.45% | |
| 3Y Return (annualized) | +15.55% | +19.71% | |
| 5Y Return (annualized) | +9.61% | +11.17% | |
| Volatility (annualized) | 13.6% | 16.1% | |
| Max Drawdown | -33.4% | -26.0% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Feb 24, 1999 |
SCHD vs VTCIX Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares (VTCIX) is a mutual fund from Vanguard (US). Over the past year SCHD returned +31.06% while VTCIX returned +21.45%. Year to date, SCHD is up 25.58% versus a gain of 12.74% for VTCIX.
Over three years, SCHD compounded at +15.55% per year against +19.71% for VTCIX; over five years the annualized figures are +9.61% and +11.17% respectively. Across the full 5-year window we track, SCHD has the edge at +11.46% annualized vs +11.17%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTCIX has been the more volatile fund, with annualized monthly volatility of 16.1% 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 -26.0% for VTCIX. 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while VTCIX charges 0.03%. On a $10,000 position that is $6 vs $3 annually, a gap of $3 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 1.08% for VTCIX.
Holdings Overlap
SCHD and VTCIX share 48 holdings out of 877 unique holdings combined, representing a 6.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or VTCIX?
SCHD has an expense ratio of 0.06% while VTCIX charges 0.03%. VTCIX is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHD or VTCIX?
Over the past year SCHD returned +31.06% vs +21.45% for VTCIX, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), SCHD annualized +11.46% vs +11.17% for VTCIX. Past performance does not guarantee future results.
Which is riskier, SCHD or VTCIX?
VTCIX has been the more volatile fund at 16.1% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs VTCIX -26.0%.
Should I hold both SCHD and VTCIX?
SCHD and VTCIX have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VTCIX?
SCHD and VTCIX share 48 common holdings with a 6.9% weight overlap. Combined, they hold 877 unique securities.
Which pays a higher dividend, SCHD or VTCIX?
SCHD yields 3.31% while VTCIX yields 1.08%, so SCHD currently pays the higher dividend yield.
Popular Fund Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.