SCHQ vs VGI
Schwab Long-Term US Treasury ETF vs Virtus Global Multi-Sector Income Fund
Quick Verdict
SCHQ has a lower expense ratio. VGI delivered stronger 1-year returns. VGI offers more diversification with 434 holdings.
Side-by-Side Comparison
| Metric | SCHQ | VGI | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 1.74% | |
| AUM | $806M | $88M | |
| Dividend Yield | 4.73% | 11.98% | |
| Holdings | 98 | 646 | |
| YTD Return | -3.15% | +1.61% | |
| 1Y Return | -0.88% | +5.13% | |
| 3Y Return (annualized) | +0.10% | +11.18% | |
| 5Y Return (annualized) | -6.79% | +2.21% | |
| Volatility (annualized) | 13.5% | 14.2% | |
| Max Drawdown | -46.7% | -63.3% | |
| Fund Family | Charles Schwab Asset Management | Virtus Investment Partners | |
| Category | Fixed Income | Fixed Income | |
| Inception | Oct 10, 2019 | Feb 23, 2012 |
SCHQ vs VGI Performance
Schwab Long-Term US Treasury ETF (SCHQ) is a ETF from Charles Schwab Asset Management and Virtus Global Multi-Sector Income Fund (VGI) is a ETF from Virtus Investment Partners. Over the past year SCHQ returned -0.88% while VGI returned +5.13%. Year to date, SCHQ is down 3.15% versus a gain of 1.61% for VGI.
Over three years, SCHQ compounded at +0.10% per year against +11.18% for VGI; over five years the annualized figures are -6.79% and +2.21% respectively. Across the full 7-year window we track, VGI has the edge at -2.37% annualized vs -4.49%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGI has been the more volatile fund, with annualized monthly volatility of 14.2% compared with 13.5% for SCHQ. 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 -46.7% for SCHQ and -63.3% for VGI. 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHQ charges 0.03% per year while VGI charges 1.74%. On a $10,000 position that is $3 vs $174 annually, a gap of $171 per year that compounds over a long holding period. On income, SCHQ currently yields 4.73% against 11.98% for VGI.
Frequently Asked Questions
Which is cheaper, SCHQ or VGI?
SCHQ has an expense ratio of 0.03% while VGI charges 1.74%. SCHQ is the cheaper option. On a $10,000 investment, that is $171 per year of difference.
Which performed better, SCHQ or VGI?
Over the past year SCHQ returned -0.88% vs +5.13% for VGI, so VGI leads on 1-year performance. Over the longest common window we track (7 years), SCHQ annualized -4.49% vs -2.37% for VGI. Past performance does not guarantee future results.
Which is riskier, SCHQ or VGI?
VGI has been the more volatile fund at 14.2% annualized versus 13.5% for SCHQ. Worst drawdown: SCHQ -46.7% vs VGI -63.3%.
Should I hold both SCHQ and VGI?
SCHQ and VGI have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, SCHQ or VGI?
SCHQ yields 4.73% while VGI yields 11.98%, so VGI currently pays the higher dividend yield.
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