SCHD vs VTEI
Schwab US Dividend Equity ETF vs Vanguard Intermediate-Term Tax-Exempt Bond ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. VTEI offers more diversification with 1768 holdings.
Side-by-Side Comparison
| Metric | SCHD | VTEI | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.08% | |
| AUM | $103.7B | $1.5B | |
| Dividend Yield | 3.31% | 3.04% | |
| Holdings | 104 | 10,147 | |
| YTD Return | +25.58% | -1.20% | |
| 1Y Return | +31.06% | +2.28% | |
| 3Y Return (annualized) | +15.55% | - | |
| 5Y Return (annualized) | +9.61% | - | |
| Volatility (annualized) | 13.6% | 3.4% | |
| Max Drawdown | -33.4% | -3.6% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Oct 20, 2011 | Jan 26, 2024 |
SCHD vs VTEI Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI) is a ETF from Vanguard (US). Over the past year SCHD returned +31.06% while VTEI returned +2.28%. Year to date, SCHD is up 25.58% versus a loss of 1.20% for VTEI.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 3.4% for VTEI. 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 -3.6% for VTEI. 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 VTEI charges 0.08%. On a $10,000 position that is $6 vs $8 annually, a gap of $2 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 3.04% for VTEI.
Holdings Overlap
SCHD and VTEI share 0 holdings out of 1868 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 VTEI?
SCHD has an expense ratio of 0.06% while VTEI charges 0.08%. SCHD is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, SCHD or VTEI?
Over the past year SCHD returned +31.06% vs +2.28% for VTEI, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), SCHD annualized +11.46% vs +1.94% for VTEI. Past performance does not guarantee future results.
Which is riskier, SCHD or VTEI?
SCHD has been the more volatile fund at 13.6% annualized versus 3.4% for VTEI. Worst drawdown: SCHD -33.4% vs VTEI -3.6%.
Should I hold both SCHD and VTEI?
SCHD and VTEI 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 VTEI?
SCHD and VTEI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1868 unique securities.
Which pays a higher dividend, SCHD or VTEI?
SCHD yields 3.31% while VTEI yields 3.04%, so SCHD currently pays the higher dividend yield.
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