SCHD vs VTV
Schwab US Dividend Equity ETF vs Vanguard Morningstar Value ETF
Quick Verdict
VTV has a lower expense ratio. SCHD delivered stronger 1-year returns. VTV offers more diversification with 311 holdings.
Side-by-Side Comparison
| Metric | SCHD | VTV | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $108.7B | $187.8B | |
| Dividend Yield | 3.13% | 1.85% | |
| Holdings | 104 | 311 | |
| YTD Return | +28.70% | +18.65% | |
| 1Y Return | +32.27% | +27.73% | |
| 3Y Return (annualized) | +17.27% | +19.75% | |
| 5Y Return (annualized) | +10.23% | +12.58% | |
| Volatility (annualized) | 13.7% | 14.5% | |
| Max Drawdown | -33.4% | -61.3% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Jan 26, 2004 |
SCHD vs VTV Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Morningstar Value ETF (VTV) is a ETF from Vanguard (US). Over the past year SCHD returned +32.27% while VTV returned +27.73%. Year to date, SCHD is up 28.70% versus a gain of 18.65% for VTV.
Over three years, SCHD compounded at +17.27% per year against +19.75% for VTV; over five years the annualized figures are +10.23% and +12.58% respectively. Across the full 15-year window we track, SCHD has the edge at +11.63% annualized vs +7.62%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTV has been the more volatile fund, with annualized monthly volatility of 14.5% compared with 13.7% for SCHD. 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 -61.3% for VTV. 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 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
SCHD charges 0.06% per year while VTV 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 3.13% against 1.85% for VTV.
Holdings Overlap
SCHD and VTV share 40 holdings out of 368 unique holdings combined, representing a 17.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or VTV?
SCHD has an expense ratio of 0.06% while VTV charges 0.03%. VTV is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHD or VTV?
Over the past year SCHD returned +32.27% vs +27.73% for VTV, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.63% vs +7.62% for VTV. Past performance does not guarantee future results.
Which is riskier, SCHD or VTV?
VTV has been the more volatile fund at 14.5% annualized versus 13.7% for SCHD. Worst drawdown: SCHD -33.4% vs VTV -61.3%.
Should I hold both SCHD and VTV?
SCHD and VTV have a monthly-return correlation of 0.95, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between SCHD and VTV?
SCHD and VTV share 40 common holdings with a 17.1% weight overlap. Combined, they hold 368 unique securities.
Which pays a higher dividend, SCHD or VTV?
SCHD yields 3.13% while VTV yields 1.85%, so SCHD currently pays the higher dividend yield.
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