SCHR vs VYM

Quick Verdict

SCHR has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: SCHRHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricSCHRVYMWinner
Expense Ratio0.03%0.04%
AUM$13.3B$79.0B
Dividend Yield3.90%2.86%
Holdings101568
YTD Return-0.72%+16.53%
1Y Return+1.37%+25.03%
3Y Return (annualized)+3.92%+18.54%
5Y Return (annualized)-0.12%+12.25%
Volatility (annualized)4.2%14.6%
Max Drawdown-16.6%-58.8%
Fund FamilyCharles Schwab Asset ManagementVanguard (US)
CategoryFixed IncomeEquity
InceptionAug 5, 2010Nov 10, 2006

SCHR vs VYM Performance

Schwab Intermediate-Term US Treasury ETF (SCHR) 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 SCHR returned +1.37% while VYM returned +25.03%. Year to date, SCHR is down 0.72% versus a gain of 16.53% for VYM.

Over three years, SCHR compounded at +3.92% per year against +18.54% for VYM; over five years the annualized figures are -0.12% and +12.25% respectively. Across the full 16-year window we track, VYM has the edge at +7.10% annualized vs +0.83%. 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 4.2% for SCHR. 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 -16.6% for SCHR 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 -0.02. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHR 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, SCHR currently yields 3.90% against 2.86% for VYM.

Frequently Asked Questions

Which is cheaper, SCHR or VYM?

SCHR has an expense ratio of 0.03% while VYM charges 0.04%. SCHR is the cheaper option. On a $10,000 investment, that is $1 per year of difference.

Which performed better, SCHR or VYM?

Over the past year SCHR returned +1.37% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (16 years), SCHR annualized +0.83% vs +7.10% for VYM. Past performance does not guarantee future results.

Which is riskier, SCHR or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 4.2% for SCHR. Worst drawdown: SCHR -16.6% vs VYM -58.8%.

Should I hold both SCHR and VYM?

SCHR and VYM have a monthly-return correlation of -0.02, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, SCHR or VYM?

SCHR yields 3.90% while VYM yields 2.86%, so SCHR currently pays the higher dividend yield.

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