SCHD vs VTWO
Schwab US Dividend Equity ETF vs Vanguard Russell 2000 ETF
Quick Verdict
SCHD delivered stronger 1-year returns. VTWO offers more diversification with 1,970 holdings.
Side-by-Side Comparison
| Metric | SCHD | VTWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.06% | |
| AUM | $108.7B | $17.5B | |
| Dividend Yield | 3.13% | 1.11% | |
| Holdings | 104 | 1,970 | |
| YTD Return | +27.67% | +21.19% | |
| 1Y Return | +29.56% | +28.63% | |
| 3Y Return (annualized) | +16.53% | +18.95% | |
| 5Y Return (annualized) | +9.95% | +7.29% | |
| Volatility (annualized) | 13.6% | 19.1% | |
| Max Drawdown | -33.4% | -42.4% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Sep 20, 2010 |
SCHD vs VTWO Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Russell 2000 ETF (VTWO) is a ETF from Vanguard (US). Over the past year SCHD returned +29.56% while VTWO returned +28.63%. Year to date, SCHD is up 27.67% versus a gain of 21.19% for VTWO.
Over three years, SCHD compounded at +16.53% per year against +18.95% for VTWO; over five years the annualized figures are +9.95% and +7.29% respectively. Across the full 15-year window we track, SCHD has the edge at +11.55% annualized vs +10.70%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTWO has been the more volatile fund, with annualized monthly volatility of 19.1% compared with 13.6% 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 -42.4% for VTWO. 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while VTWO charges 0.06%. On a $10,000 position that is $6 vs $6 annually. On income, SCHD currently yields 3.13% against 1.11% for VTWO.
Holdings Overlap
SCHD and VTWO share 33 holdings out of 2045 unique holdings combined, representing a 1.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or VTWO?
SCHD has an expense ratio of 0.06% while VTWO charges 0.06%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, SCHD or VTWO?
Over the past year SCHD returned +29.56% vs +28.63% for VTWO, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.55% vs +10.70% for VTWO. Past performance does not guarantee future results.
Which is riskier, SCHD or VTWO?
VTWO has been the more volatile fund at 19.1% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs VTWO -42.4%.
Should I hold both SCHD and VTWO?
SCHD and VTWO have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VTWO?
SCHD and VTWO share 33 common holdings with a 1.5% weight overlap. Combined, they hold 2045 unique securities.
Which pays a higher dividend, SCHD or VTWO?
SCHD yields 3.13% while VTWO yields 1.11%, so SCHD currently pays the higher dividend yield.
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