SCHD vs VBND
SCHD vs VBND
Schwab US Dividend Equity ETF vs Vident US Bond Strategy ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. VBND offers more diversification with 152 holdings.
Side-by-Side Comparison
| Metric | SCHD | VBND | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.41% | |
| AUM | $103.7B | $525M | |
| Dividend Yield | 3.31% | 4.25% | |
| Holdings | 104 | 192 | |
| YTD Return | +24.08% | +0.45% | |
| 1Y Return | +31.88% | +2.79% | |
| 3Y Return (annualized) | +14.92% | +4.73% | |
| 5Y Return (annualized) | +9.85% | -0.11% | |
| Volatility (annualized) | 13.6% | 5.3% | |
| Max Drawdown | -33.4% | -19.0% | |
| Fund Family | Charles Schwab Asset Management | Vident Financial | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Oct 15, 2014 |
SCHD vs VBND Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vident US Bond Strategy ETF (VBND) is a ETF from Vident Financial. Over the past year SCHD returned +31.88% while VBND returned +2.79%. Year to date, SCHD is up 24.08% versus a gain of 0.45% for VBND.
Over three years, SCHD compounded at +14.92% per year against +4.73% for VBND; over five years the annualized figures are +9.85% and -0.11% respectively. Across the full 12-year window we track, SCHD has the edge at +11.39% annualized vs +0.35%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 5.3% for VBND. 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 -33.4% for SCHD and -19.0% for VBND. 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
SCHD charges 0.06% per year while VBND charges 0.41%. On a $10,000 position that is $6 vs $41 annually, a gap of $35 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 4.25% for VBND.
Holdings Overlap
SCHD and VBND share 0 holdings out of 252 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, SCHD or VBND?
SCHD has an expense ratio of 0.06% while VBND charges 0.41%. SCHD is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, SCHD or VBND?
Over the past year SCHD returned +31.88% vs +2.79% for VBND, so SCHD leads on 1-year performance. Over the longest common window we track (12 years), SCHD annualized +11.39% vs +0.35% for VBND. Past performance does not guarantee future results.
Which is riskier, SCHD or VBND?
SCHD has been the more volatile fund at 13.6% annualized versus 5.3% for VBND. Worst drawdown: SCHD -33.4% vs VBND -19.0%.
Should I hold both SCHD and VBND?
SCHD and VBND have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VBND?
SCHD and VBND share 0 common holdings with a 0.0% weight overlap. Combined, they hold 252 unique securities.
Which pays a higher dividend, SCHD or VBND?
SCHD yields 3.31% while VBND yields 4.25%, so VBND currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.