SCHD vs VTEB
SCHD vs VTEB
Schwab US Dividend Equity ETF vs Vanguard Tax-Exempt Bond ETF
Quick Verdict
VTEB has a lower expense ratio. SCHD delivered stronger 1-year returns. VTEB offers more diversification with 3533 holdings.
Side-by-Side Comparison
| Metric | SCHD | VTEB | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $103.7B | $46.0B | |
| Dividend Yield | 3.31% | 3.34% | |
| Holdings | 104 | 9,952 | |
| YTD Return | +24.26% | +0.57% | |
| 1Y Return | +31.38% | +5.15% | |
| 3Y Return (annualized) | +15.08% | +3.20% | |
| 5Y Return (annualized) | +9.72% | +0.58% | |
| Volatility (annualized) | 13.6% | 4.9% | |
| Max Drawdown | -33.4% | -17.0% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Oct 20, 2011 | Aug 21, 2015 |
SCHD vs VTEB Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Tax-Exempt Bond ETF (VTEB) is a ETF from Vanguard (US). Over the past year SCHD returned +31.38% while VTEB returned +5.15%. Year to date, SCHD is up 24.26% versus a gain of 0.57% for VTEB.
Over three years, SCHD compounded at +15.08% per year against +3.20% for VTEB; over five years the annualized figures are +9.72% and +0.58% respectively. Across the full 11-year window we track, SCHD has the edge at +11.39% annualized vs +1.27%. 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 4.9% for VTEB. 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 -17.0% for VTEB. 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 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while VTEB 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 3.34% for VTEB.
Holdings Overlap
SCHD and VTEB share 0 holdings out of 3633 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 VTEB?
SCHD has an expense ratio of 0.06% while VTEB charges 0.03%. VTEB is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHD or VTEB?
Over the past year SCHD returned +31.38% vs +5.15% for VTEB, so SCHD leads on 1-year performance. Over the longest common window we track (11 years), SCHD annualized +11.39% vs +1.27% for VTEB. Past performance does not guarantee future results.
Which is riskier, SCHD or VTEB?
SCHD has been the more volatile fund at 13.6% annualized versus 4.9% for VTEB. Worst drawdown: SCHD -33.4% vs VTEB -17.0%.
Should I hold both SCHD and VTEB?
SCHD and VTEB have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VTEB?
SCHD and VTEB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3633 unique securities.
Which pays a higher dividend, SCHD or VTEB?
SCHD yields 3.31% while VTEB yields 3.34%, so VTEB currently pays the higher dividend yield.
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