SCHQ vs VYM
Schwab Long-Term US Treasury ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
SCHQ has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | SCHQ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $806M | $79.0B | |
| Dividend Yield | 4.73% | 2.86% | |
| Holdings | 98 | 568 | |
| YTD Return | -3.33% | +16.10% | |
| 1Y Return | -1.50% | +25.99% | |
| 3Y Return (annualized) | -0.01% | +18.29% | |
| 5Y Return (annualized) | -6.86% | +12.35% | |
| Volatility (annualized) | 13.5% | 14.6% | |
| Max Drawdown | -46.7% | -58.8% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 10, 2019 | Nov 10, 2006 |
SCHQ vs VYM Performance
Schwab Long-Term US Treasury ETF (SCHQ) 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 SCHQ returned -1.50% while VYM returned +25.99%. Year to date, SCHQ is down 3.33% versus a gain of 16.10% for VYM.
Over three years, SCHQ compounded at -0.01% per year against +18.29% for VYM; over five years the annualized figures are -6.86% and +12.35% respectively. Across the full 7-year window we track, VYM has the edge at +7.08% annualized vs -4.51%. 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 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 -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 0.16. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHQ 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, SCHQ currently yields 4.73% against 2.86% for VYM.
Frequently Asked Questions
Which is cheaper, SCHQ or VYM?
SCHQ has an expense ratio of 0.03% while VYM charges 0.04%. SCHQ is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, SCHQ or VYM?
Over the past year SCHQ returned -1.50% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (7 years), SCHQ annualized -4.51% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, SCHQ or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.5% for SCHQ. Worst drawdown: SCHQ -46.7% vs VYM -58.8%.
Should I hold both SCHQ and VYM?
SCHQ and VYM have a monthly-return correlation of 0.16, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, SCHQ or VYM?
SCHQ yields 4.73% while VYM yields 2.86%, so SCHQ currently pays the higher dividend yield.
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