SCHD vs VTIP
SCHD vs VTIP
Schwab US Dividend Equity ETF vs Vanguard Short-Term Inflation-Protected Securities ETF
Quick Verdict
VTIP has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | VTIP | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $103.7B | $19.3B | |
| Dividend Yield | 3.31% | 3.60% | |
| Holdings | 104 | 27 | |
| YTD Return | +24.26% | +1.87% | |
| 1Y Return | +31.38% | +3.01% | |
| 3Y Return (annualized) | +15.08% | +5.37% | |
| 5Y Return (annualized) | +9.72% | +3.39% | |
| Volatility (annualized) | 13.6% | 2.4% | |
| Max Drawdown | -33.4% | -7.1% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Oct 12, 2012 |
SCHD vs VTIP Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is a ETF from Vanguard (US). Over the past year SCHD returned +31.38% while VTIP returned +3.01%. Year to date, SCHD is up 24.26% versus a gain of 1.87% for VTIP.
Over three years, SCHD compounded at +15.08% per year against +5.37% for VTIP; over five years the annualized figures are +9.72% and +3.39% respectively. Across the full 14-year window we track, SCHD has the edge at +11.39% annualized vs +1.58%. 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 2.4% for VTIP. 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 -7.1% for VTIP. 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 VTIP 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 3.60% for VTIP.
Holdings Overlap
SCHD and VTIP share 0 holdings out of 123 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 VTIP?
SCHD has an expense ratio of 0.06% while VTIP charges 0.03%. VTIP is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHD or VTIP?
Over the past year SCHD returned +31.38% vs +3.01% for VTIP, so SCHD leads on 1-year performance. Over the longest common window we track (14 years), SCHD annualized +11.39% vs +1.58% for VTIP. Past performance does not guarantee future results.
Which is riskier, SCHD or VTIP?
SCHD has been the more volatile fund at 13.6% annualized versus 2.4% for VTIP. Worst drawdown: SCHD -33.4% vs VTIP -7.1%.
Should I hold both SCHD and VTIP?
SCHD and VTIP 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 VTIP?
SCHD and VTIP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 123 unique securities.
Which pays a higher dividend, SCHD or VTIP?
SCHD yields 3.31% while VTIP yields 3.60%, so VTIP currently pays the higher dividend yield.
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