SCHO vs VYM
Schwab Short-Term US Treasury ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
SCHO has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | SCHO | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $13.0B | $81.6B | |
| Dividend Yield | 3.90% | 2.24% | |
| Holdings | 97 | 616 | |
| YTD Return | +1.21% | +15.60% | |
| 1Y Return | +2.97% | +23.48% | |
| 3Y Return (annualized) | +4.27% | +19.07% | |
| 5Y Return (annualized) | +1.89% | +12.50% | |
| Volatility (annualized) | 1.4% | 14.6% | |
| Max Drawdown | -6.3% | -58.8% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 5, 2010 | Nov 10, 2006 |
SCHO vs VYM Performance
Schwab Short-Term US Treasury ETF (SCHO) is a ETF from Charles Schwab Asset Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SCHO returned +2.97% while VYM returned +23.48%. Year to date, SCHO is up 1.21% versus a gain of 15.60% for VYM.
Over three years, SCHO compounded at +4.27% per year against +19.07% for VYM; over five years the annualized figures are +1.89% and +12.50% respectively. Across the full 16-year window we track, VYM has the edge at +7.05% annualized vs +0.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 1.4% for SCHO. 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 -6.3% for SCHO and -58.8% for VYM. 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 0.04. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHO charges 0.03% per year while VYM charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, SCHO currently yields 3.90% against 2.24% for VYM.
Holdings Overlap
SCHO and VYM share 0 holdings out of 678 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, SCHO or VYM?
SCHO has an expense ratio of 0.03% while VYM charges 0.04%. SCHO is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, SCHO or VYM?
Over the past year SCHO returned +2.97% vs +23.48% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (16 years), SCHO annualized +0.75% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, SCHO or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 1.4% for SCHO. Worst drawdown: SCHO -6.3% vs VYM -58.8%.
Should I hold both SCHO and VYM?
SCHO and VYM have a monthly-return correlation of 0.04, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHO and VYM?
SCHO and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 678 unique securities.
Which pays a higher dividend, SCHO or VYM?
SCHO yields 3.90% while VYM yields 2.24%, so SCHO currently pays the higher dividend yield.
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