SCHD vs VWOB
Schwab US Dividend Equity ETF vs Vanguard Emerging Markets Government Bond ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. VWOB offers more diversification with 376 holdings.
Side-by-Side Comparison
| Metric | SCHD | VWOB | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.15% | |
| AUM | $103.7B | $6.3B | |
| Dividend Yield | 3.31% | 5.81% | |
| Holdings | 104 | 903 | |
| YTD Return | +24.26% | +1.04% | |
| 1Y Return | +31.38% | +6.07% | |
| 3Y Return (annualized) | +15.08% | +8.44% | |
| 5Y Return (annualized) | +9.72% | +1.93% | |
| Volatility (annualized) | 13.6% | 8.6% | |
| Max Drawdown | -33.4% | -28.0% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | May 31, 2013 |
SCHD vs VWOB Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Emerging Markets Government Bond ETF (VWOB) is a ETF from Vanguard (US). Over the past year SCHD returned +31.38% while VWOB returned +6.07%. Year to date, SCHD is up 24.26% versus a gain of 1.04% for VWOB.
Over three years, SCHD compounded at +15.08% per year against +8.44% for VWOB; over five years the annualized figures are +9.72% and +1.93% respectively. Across the full 13-year window we track, SCHD has the edge at +11.39% annualized vs +0.79%. 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 8.6% for VWOB. 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 -28.0% for VWOB. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while VWOB charges 0.15%. On a $10,000 position that is $6 vs $15 annually, a gap of $9 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 5.81% for VWOB.
Holdings Overlap
SCHD and VWOB share 0 holdings out of 476 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 VWOB?
SCHD has an expense ratio of 0.06% while VWOB charges 0.15%. SCHD is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, SCHD or VWOB?
Over the past year SCHD returned +31.38% vs +6.07% for VWOB, so SCHD leads on 1-year performance. Over the longest common window we track (13 years), SCHD annualized +11.39% vs +0.79% for VWOB. Past performance does not guarantee future results.
Which is riskier, SCHD or VWOB?
SCHD has been the more volatile fund at 13.6% annualized versus 8.6% for VWOB. Worst drawdown: SCHD -33.4% vs VWOB -28.0%.
Should I hold both SCHD and VWOB?
SCHD and VWOB have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VWOB?
SCHD and VWOB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 476 unique securities.
Which pays a higher dividend, SCHD or VWOB?
SCHD yields 3.31% while VWOB yields 5.81%, so VWOB currently pays the higher dividend yield.
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