SCHD vs VTEC

Quick Verdict

SCHD delivered stronger 1-year returns. VTEC offers more diversification with 702 holdings.

Lower Fees: TiedHigher Returns: SCHDMore Diversified: VTEC

Side-by-Side Comparison

MetricSCHDVTECWinner
Expense Ratio0.06%0.06%
AUM$103.7B$2.8B
Dividend Yield3.31%3.14%
Holdings1043,617
YTD Return+24.26%-1.15%
1Y Return+31.38%+2.99%
3Y Return (annualized)+15.08%-
5Y Return (annualized)+9.72%-
Volatility (annualized)13.6%3.9%
Max Drawdown-33.4%-4.5%
Fund FamilyCharles Schwab Asset ManagementVanguard (US)
CategoryEquityTax Preferred
InceptionOct 20, 2011Jan 26, 2024

SCHD vs VTEC Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard California Tax-Exempt Bond ETF (VTEC) is a ETF from Vanguard (US). Over the past year SCHD returned +31.38% while VTEC returned +2.99%. Year to date, SCHD is up 24.26% versus a loss of 1.15% for VTEC.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 3.9% for VTEC. 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 -4.5% for VTEC. 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while VTEC charges 0.06%. On a $10,000 position that is $6 vs $6 annually. On income, SCHD currently yields 3.31% against 3.14% for VTEC.

Holdings Overlap

0.0%overlap

SCHD and VTEC share 0 holdings out of 802 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 VTEC?

SCHD has an expense ratio of 0.06% while VTEC charges 0.06%. They cost the same. On a $10,000 investment, that is $0 per year of difference.

Which performed better, SCHD or VTEC?

Over the past year SCHD returned +31.38% vs +2.99% for VTEC, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), SCHD annualized +11.39% vs +1.57% for VTEC. Past performance does not guarantee future results.

Which is riskier, SCHD or VTEC?

SCHD has been the more volatile fund at 13.6% annualized versus 3.9% for VTEC. Worst drawdown: SCHD -33.4% vs VTEC -4.5%.

Should I hold both SCHD and VTEC?

SCHD and VTEC have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and VTEC?

SCHD and VTEC share 0 common holdings with a 0.0% weight overlap. Combined, they hold 802 unique securities.

Which pays a higher dividend, SCHD or VTEC?

SCHD yields 3.31% while VTEC yields 3.14%, so SCHD currently pays the higher dividend yield.

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