SCHD vs VTEC
Schwab US Dividend Equity ETF vs Vanguard California Tax-Exempt Bond ETF
Quick Verdict
SCHD delivered stronger 1-year returns. VTEC offers more diversification with 3,874 holdings.
Side-by-Side Comparison
| Metric | SCHD | VTEC | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.06% | |
| AUM | $108.7B | $3.1B | |
| Dividend Yield | 3.13% | 3.19% | |
| Holdings | 104 | 3,874 | |
| YTD Return | +27.67% | -1.89% | |
| 1Y Return | +29.56% | +1.92% | |
| 3Y Return (annualized) | +16.53% | - | |
| 5Y Return (annualized) | +9.95% | - | |
| Volatility (annualized) | 13.6% | 3.9% | |
| Max Drawdown | -33.4% | -4.5% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Oct 20, 2011 | Jan 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 +29.56% while VTEC returned +1.92%. Year to date, SCHD is up 27.67% versus a loss of 1.89% 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 0.40. 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 3.13% against 3.19% for VTEC.
Holdings Overlap
SCHD and VTEC share 0 holdings out of 404 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 +29.56% vs +1.92% for VTEC, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), SCHD annualized +11.55% vs +1.24% 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 0.40, 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 404 unique securities.
Which pays a higher dividend, SCHD or VTEC?
SCHD yields 3.13% while VTEC yields 3.19%, so VTEC currently pays the higher dividend yield.
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