SCHQ vs VXUS

Quick Verdict

SCHQ has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.

Lower Fees: SCHQHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricSCHQVXUSWinner
Expense Ratio0.03%0.05%
AUM$806M$156.5B
Dividend Yield4.73%2.60%
Holdings988,747
YTD Return-2.55%+14.57%
1Y Return-1.03%+27.82%
3Y Return (annualized)-0.20%+19.27%
5Y Return (annualized)-6.80%+9.28%
Volatility (annualized)13.5%15.1%
Max Drawdown-46.7%-39.9%
Fund FamilyCharles Schwab Asset ManagementVanguard (US)
CategoryFixed IncomeEquity
InceptionOct 10, 2019Jan 26, 2011

SCHQ vs VXUS Performance

Schwab Long-Term US Treasury ETF (SCHQ) is a ETF from Charles Schwab Asset Management and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year SCHQ returned -1.03% while VXUS returned +27.82%. Year to date, SCHQ is down 2.55% versus a gain of 14.57% for VXUS.

Over three years, SCHQ compounded at -0.20% per year against +19.27% for VXUS; over five years the annualized figures are -6.80% and +9.28% respectively. Across the full 7-year window we track, VXUS has the edge at +4.86% annualized vs -4.41%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -39.9% for VXUS. 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHQ charges 0.03% per year while VXUS charges 0.05%. On a $10,000 position that is $3 vs $5 annually, a gap of $2 per year that compounds over a long holding period. On income, SCHQ currently yields 4.73% against 2.60% for VXUS.

Frequently Asked Questions

Which is cheaper, SCHQ or VXUS?

SCHQ has an expense ratio of 0.03% while VXUS charges 0.05%. SCHQ is the cheaper option. On a $10,000 investment, that is $2 per year of difference.

Which performed better, SCHQ or VXUS?

Over the past year SCHQ returned -1.03% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (7 years), SCHQ annualized -4.41% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, SCHQ or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 13.5% for SCHQ. Worst drawdown: SCHQ -46.7% vs VXUS -39.9%.

Should I hold both SCHQ and VXUS?

SCHQ and VXUS have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, SCHQ or VXUS?

SCHQ yields 4.73% while VXUS yields 2.60%, so SCHQ currently pays the higher dividend yield.

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